EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 13, Problem 13.5P
a)
To determine
To calculate: the equilibrium levels of v and K in this market
b)
To determine
To calculate: the equilibrium levels of v and K when
c)
To determine
To graph: The graph that shows value of V and K.
d)
To determine
To calculate: The per car subsidy and the way to apportion the benefit of the subsidy.
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Consider a two-sector general equilibrium of production system. Sector one’s unit cost function is c1 = w1/3r2/3 and that of sector two is c2 = w1/2r1/2, where w and r are the wage rate of labor and the rental rate of capital, respectively. Both the input and output markets are all characterized by perfect competition and full employment of both the factors of production. For a one-percent increase in the price of the commodity produced in sector two, what are the percentage changes in factor prices?
THIS EXERCISE FOR MATHEMATICAL ECONOMIC :
Question (1):
Suppose the estimated quantity demand for potato chips is Q = 140 – 15p and the quantity supply function for potato chips is Q = 115 + 10p.
Find the equilibrium price and quantity for the number of bags of potato chips.
Suppose that the main costs of producing potato chips are labor and potatoes. On a per unit basis, the cost of producing and manufacturing a bag of potato chips rises by $1.50. The firms are citing higher labor costs and fewer potatoes are grown due to the poor climate. What will be the new equilibrium price and quantity? Whichever curve you think a shift will occur, derive the new function.
Suppose that a health news piece has been published indicating the ill effects of consuming potato chips. The news has been published after the firms incurred the higher costs of production. Consumers are being advised to consume popcorn or pretzels instead of potato chips. How would that affect the market for potato…
Consider a competitive market for red lentils with 100 identical farmers in Horsham
Victoria, a competitive market price of $5 and the following MC for each farmer:
MC = $0.05Q
Also consider the following market demand function:
QD
a) Calculate the optimal level of production (in tonnes) for each farmer (show workings)
= = 1000 - 40P
b) Assuming 100 lentil farmers of equal size how many tonnes of lentils in total will be
supplied in the entire market? (show all workings)
c) Consider that the government now imposes a 25% tax on producers, calculate i) the
new equilibrium level of output for each firm (hint - think about how this affects each
farmer's marginal cost), and ii) new total supply in the entire market (show all
workings)
Chapter 13 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 13.1 - Prob. 1MQCh. 13.1 - Prob. 2MQCh. 13.2 - Prob. 1TTACh. 13.2 - Prob. 2TTACh. 13.3 - Prob. 1MQCh. 13.3 - Prob. 2MQCh. 13.5 - Prob. 1MQCh. 13.6 - Prob. 1MQCh. 13.6 - Prob. 1TTACh. 13.6 - Prob. 2TTA
Ch. 13.6 - Prob. 1.1TTACh. 13.6 - Prob. 2.1TTACh. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - Prob. 9RQCh. 13 - Prob. 10RQCh. 13 - Prob. 13.1PCh. 13 - Prob. 13.2PCh. 13 - Prob. 13.3PCh. 13 - Prob. 13.4PCh. 13 - Prob. 13.5PCh. 13 - Prob. 13.6PCh. 13 - Prob. 13.7PCh. 13 - Prob. 13.8PCh. 13 - Prob. 13.9PCh. 13 - Prob. 13.10P
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