Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 13, Problem 15APA
To determine
Impact of the government tax on the output and price.
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Hot Air Balloon Rides is a single-price monopoly.
Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out
Price
Quantity
Total cost
(dollars
per month)
(dollars
(rides
the total cost schedule.
per ride)
per month)
Suppose the government taxes Hot Air by S60 per ride.
250
20
Calculate Hot Air's new profit-maximizing quantity, price and economic profit.
230
100
...
210
200
Hot Air's new profit-maximizing output is rides a month and the firm's profit-maximizing price
is $a ride.
>>> Answer to 1 decimal place.
190
3
320
170
4
460
150
620
When Hot Air produces the new profit-maximizing output and charges the profit-maximizing
price, it
of s
>>> Answer to 1 decimal place.
>>> If the firm incurs an economic loss, select economic loss in the dropdown box and do not
enter a minus sign.
13. A monopoly’s price is $20. At this price the absolute value of the elasticity of demand is 2. What is the monopoly’s MC?
Mary has a monopoly selling her patented non-alcoholic icewine. Currently, her marginal revenue is $26 and her marginal
cost is $29. The price of a bottle of icewine is $35. She should
A. increase the price and decrease the level of output.
B. decrease the price and increase the level of output.
C. increase the price and the level of output.
D. decrease the price and the level of output.
Chapter 13 Solutions
Macroeconomics
Ch. 13.1 - Prob. 1RQCh. 13.1 - Prob. 2RQCh. 13.1 - Prob. 3RQCh. 13.2 - Prob. 1RQCh. 13.2 - Prob. 2RQCh. 13.2 - Prob. 3RQCh. 13.2 - Prob. 4RQCh. 13.3 - Prob. 1RQCh. 13.3 - Prob. 2RQCh. 13.3 - Prob. 3RQ
Ch. 13.3 - Prob. 4RQCh. 13.4 - Prob. 1RQCh. 13.4 - Prob. 2RQCh. 13.4 - Prob. 3RQCh. 13.4 - Prob. 4RQCh. 13.5 - Prob. 1RQCh. 13.5 - Prob. 2RQCh. 13.5 - Prob. 3RQCh. 13.5 - Prob. 4RQCh. 13 - Prob. 1SPACh. 13 - Prob. 2SPACh. 13 - Prob. 3SPACh. 13 - Prob. 4SPACh. 13 - Prob. 5SPACh. 13 - Prob. 6SPACh. 13 - Prob. 7SPACh. 13 - Prob. 8SPACh. 13 - Prob. 9SPACh. 13 - Prob. 10APACh. 13 - Prob. 11APACh. 13 - Prob. 12APACh. 13 - Prob. 13APACh. 13 - Prob. 14APACh. 13 - Prob. 15APACh. 13 - Prob. 16APACh. 13 - Prob. 17APACh. 13 - Prob. 18APACh. 13 - Prob. 19APACh. 13 - Prob. 20APACh. 13 - Prob. 21APACh. 13 - Prob. 22APACh. 13 - Prob. 23APACh. 13 - Prob. 24APACh. 13 - Prob. 25APA
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- 9See Hint Suppose seven individuals enjoy going to the comedy club. Their demand is as follows Person Willingness to pay Allison Beatrice Cally David Ezekiel Francesca Gertrude 40 36 32 28 24 20 16 Suppose the comedy club had a monopoly and a marginal cost of $7per entrant. Suppose the club could perfectly price-discriminate. That is, it could charge each customer a different price equal to his or her maximum willingness to pay, How comedy club sell? many tickets would the SUBMIT ANSWER 16/17> 9 OF 17 QUESTIONS COMPLETED MacBook Proarrow_forwardFigure 4 MC MR 20 40 60 80 100 120 Quantity (tickets per hour) 21. In figure 4, a single price monopolist would charge what? 22. In figure 4, a price discriminating monopolist would charge what? Price and costs (dollars per ticket)arrow_forwardThe below graph represents a monopoly market, a quantity where Elasticity >1 is (enter whole numbers) $ 10 9 3 17 6 3 4 1 0 Elasticity > 1 Market (Draw your graph in here) Elasticity 1 Elasticity 1 Quantity 10arrow_forward
- 2 A monopoly sells its goods in the United States, where the elasticity of demand is -2, and in Japan, where the elasticity of demand is -5. Its marginal cost is $10. At what price does the monopoly sell its goods in each country if resale is impossible?arrow_forwardTable: Prices and Demand Quantity of Hats Demanded 0 1 2345699 7 8 Price per Hat $30 XHHNARY 28 26 24 22 20 18 16 14 (Ref 27-8 Table: Prices and Demand) Use Table 27-8: Prices and Demand. The New Orleans Saints have a monopoly on Saints logo baseball hats. The Saints sell at most 1 hat to each customer, and the table shows each customer's willingness to pay. The marginal cost of producing a hat is $18, and there are no fixed costs. How much is the Saints' profit at the profit-maximizing output? O a. $18 O b. $24 O c. $12 O d. $30arrow_forwardⒸ Macmillan Learning The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits. 1. Place point E at the monopoly's profit maximizing price and quantity. 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit. 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. Price ($ per unit) 10 9 8 7 5 3 2 1 0 0 1 O X E MR 2 3 4 5 6 Quantity (millions of units) 7 MC 00 D 9 ATC 10 Profitarrow_forward
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