EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 12.5, Problem 2TTA
To determine
To describe:‘Railroads offered preferential rates to Standard Oil while refusing the same to other shippers’ − The reasons for this is to be unveiled.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
part D E
urgently need
I. Two firms, Tac-Burger Ltd. and Back-rib-Burger Ltd., use the same technology to produce output that is given by:
Q = 600(F1/2 + M1/3) K where F = Female worker; M = Male worker; K = capital
With the price of good (P) set at $1, Tac-Burger pays female an hourly wage WF and male a wage WM. The price of capital (r) is $1 and the quantity of capital is fixed at 1. Back-rib-Burger pays a wage W to both male and female.
a. The Press went after Tac-Burger accusing the company of gender discrimination. The CEO replied that their company was in the business to make money and their remuneration policy is consistent with the basic theory of profit maximization taught in basic principles of economics and managerial economics. What convincing argument must be put forward by the press to show that Tac-Burger indeed practices gender discrimination? What proof should the CEO provide to convince the public that the wage practice is fair?
b.…
Mr. Nelson, the manager of a US company, entered into a contract with an Italian company, Roma, to order some leather suitcases. The Goods were delivered on time, but with some of the zippers on the suitcase defective. Mr. Nelson contracted Roma and gave a notice that he wanted to cancel the contract. Roma responded that they only can give a reduction in the price. Who is legally right?
Can a Japanese firm assembling e-Rickshaws in India after importing parts from subsidiaries in other Asian countries use transfer pricing to enhance its profits? How can governments determine that foreign firms are not using it to manipulate compliance?
Chapter 12 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 12.2 - Prob. 1TTACh. 12.2 - Prob. 2TTACh. 12.2 - Prob. 1MQCh. 12.2 - Prob. 2MQCh. 12.2 - Prob. 1.1TTACh. 12.2 - Prob. 2.1TTACh. 12.2 - Prob. 1.1MQCh. 12.3 - Prob. 1MQCh. 12.3 - Prob. 2MQCh. 12.3 - Prob. 1TTA
Ch. 12.3 - Prob. 2TTACh. 12.3 - Prob. 1.1MQCh. 12.3 - Prob. 2.1MQCh. 12.3 - Prob. 1.1TTACh. 12.3 - Prob. 2.1TTACh. 12.4 - Prob. 1TTACh. 12.4 - Prob. 2TTACh. 12.5 - Prob. 1MQCh. 12.5 - Prob. 2MQCh. 12.5 - Prob. 1TTACh. 12.5 - Prob. 2TTACh. 12.6 - Prob. 1MQCh. 12.6 - Prob. 2MQCh. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQCh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - Prob. 12.6PCh. 12 - Prob. 12.7PCh. 12 - Prob. 12.8PCh. 12 - Prob. 12.9PCh. 12 - Prob. 12.10P
Knowledge Booster
Similar questions
- I. Two firms, Tac-Burger Ltd. and Back-rib-Burger Ltd., use the same technology to produce output that is given by: Q = 600(F1/2 + M1/3) K where F = Female worker; M = Male worker; K = capital With the price of good (P) set at $1, Tac-Burger pays female an hourly wage WF and male a wage WM. The price of capital (r) is $1 and the quantity of capital is fixed at 1. Back-rib-Burger pays a wage W to both male and female. a. The Press went after Tac-Burger accusing the company of gender discrimination. The CEO replied that their company was in the business to make money and their remuneration policy is consistent with the basic theory of profit maximization taught in basic principles of economics and managerial economics. What convincing argument must be put forward by the press to show that Tac-Burger indeed practices gender discrimination? What proof should the CEO provide to convince the public that the wage practice is fair? b. Suppose Wf = $20, WM = $30,…arrow_forwardMany large service organizations were at one time state-owned but have been privatized. Examples in some countries include electricity supply and telecommunications. They are often regulated. Similar systems of regulation of prices by an independent authority exist in many countries and are designed to act as a surrogate for market competition in industries where it is difficult to ensure a genuinely competitive market. Explain which aspects of cost information and systems in service organizations would particularly interest a regulator, and why these features would be of interest.arrow_forwardBased on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P= 1,200 - 10Q Total Revenue: TR = 1,2000 - 10Q Marginal Revenue: MR 1,200 - 200 Marginal Cost: MC = 300 + 100 where Q indicates the number of copies sold and Pis the price in Ectenian dollars. Complete the following table by finding the price and quantity that maximize the company's profit and the price and quantity that maximize social weifare. Price Quantity Scenario (Dollars) (DVDs) Maximizes the company's profit Maximizes social weifare The deadweight loss from the monopoly is S Suppose, in addition to the foregoing costs, the director of the fim has to be paid. The company is considering four options:arrow_forward
- Pfizer own the copyright for “Pfizer COVID Vaccine (PCV)”. The total cost of producing Q units of PCV is TC=100+50Q+0.5Q2: . The annual demand for PCV is P=300-0.2Q. Q is the number of units of PCV. The annual interest rate facing all agents in the economy is 8.75%. a. How many units of PCV should Pfizer produce? What price should Pfizer charge for one unit of PCV? Clearly explain your reasoning. b. What is TR from PCV to Pfizer? What are Pfizer’s annual profits from PCV? c. Suppose the Pfizer copyright of PCV was due to expire by 2021. Describe the new market structure that would occur if PCV entered the public domain, meaning anybody could use PCV. What would be the new price of one unit of PCV? How many units of PCV would be sold by the COVID vaccine industry?arrow_forwardYour task is to show what the profit of this firm might look like using a key economics diagram. To make graphing easier, we will consider the price of the Ozempic drug for the middle-income country Bangladesh, which is $38 (assumed the profit-maximising price). For this task, you will be required to illustrate and explain to a typical first-year undergrad student who has no economics background the profit the firm makes at $38 per month, and what has happened to profit (producer surplus), markup, consumer surplus and the output if the price was reduced from $38 to $10 per month.arrow_forwardRobbinGood sells financial trades to retail traders (r) and institutional traders (i) whose demand curves for financial trades are given by the following equations Demand (r): Q, = 1000 – 70P, thousand trades Demand (i): Qi = (1000/6) – (70/6)P; thousand trades and the marginal cost is a constant $1 per trade for either kind of trader. 64. Suppose RobbinGood decides to set a single price for both groups, and maximize profits accordingly. Then, RobbinGood will sell [ Answer64 ] thousand trades.arrow_forward
- Illustrate with a graph the price setting mechanism of OPEC and why this mechanism is less effective than in the 1970s?arrow_forwardAssume that you are an economic consultant. The firm that hired you has provided the information below. The firm is a price searcher and wants to maximize its profit (or minimize its loss). InformationPrice: $4Elasticity of demand at price of $4 is Ed=-1Quantity of output: 2000Total variable cost: 4000Average fixed cost: 1Marginal cost is constant and equal to the average variable cost: MC=ACV=2. Which of the following answers correctly describes this case? a) The firm is maximizing profits at the current price of $4.b) The firm should increase price and reduce quantity produced.c) None of the other answersd) Firm should reduce price and increase quantity produced.arrow_forwardWhy or how can you explain Card and Krueger's findings?arrow_forward
- Not long ago, the Federal Communications Commission (FCC) implemented “local number portability” rules allowing cellular phone consumers to switch cellular providers within the same geographic area and maintain the same phone number. How would you expect this change to affect the Rothschild index for the cellular service industry?arrow_forwardA monopolist earns $60 million annually and will maintain that level of profit indefinitely provided no other firm enters the market. If another firm successfully enters the market, the incumbent's profits remain at $60 million the first period but fall to $40 million annually thereafter. The opportunity cost of funds is 10 percent, and profits in each period are realized at the beginning of each period. What is the present value of the firm's current and future earnings if the entry occurs? Multiple Choice $460 million $750 million $450 million $550 millionarrow_forwardIf you are paid piece rates, is the quality of the article made a pretext for fraudulent deductions from your wages?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning