Microeconomics (13th Edition)
13th Edition
ISBN: 9780134744476
Author: Michael Parkin
Publisher: PEARSON
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Question
Chapter 13, Problem 5SPA
(a)
To determine
(b)
To determine
Efficiency of the monopolist.
(c)
To determine
Impact of new wells nearby the monopolist firm.
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Students have asked these similar questions
1. Price and output in a competitive price-searcher market
Consider a price-searching firm, Sean's Fire Engines, which sells fire engines in the fictional country of Pyrotania. Initially, Sean's produced six fire
engines but then decided to increase production to seven fire engines. The following graph shows the demand curve the firm faces. To sell the
additional engine, Sean's must lower its price from $100,000 to $50,000 per engine. (Hint: Sean's Fire Engines gains revenue from the additional
engine it sells, but it also loses revenue from the initial six engines because it sells them all at the lower price.)
On the following graph, use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial six engines by
selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from
selling an additional engine at $50,000.
re engine)
250
225
200
Q Search
Revenue Lost
Col
Figure 12-6
Price
(dollars
per pound)
Market 3
price
2
0
10
20
30
MC
ATC
D=MR
40
Quantity
(thousands of pounds)
Figure 12-6 shows the demand, marginal cost (MC) and average total cost (ATC) curves for
Jason's House of Apples.
Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his
profit Jason should
keep production at 20 thousand pounds.
O increase production to the output rate indicated by point e.
increase production to the output rate indicated by point d.
O decrease production to the output rate indicated by point a.
Question 3
Question 6
$19
16
Question 16
13
10
30
0
Total Product
Assume that supply of a product increases while the demand for it decreases. Then, the equilibrium quantity will,
100
160180 210
Quantity
In order to maximize profits, this firm should charge $
Average Fixed Average Variabile
Cost
Cost
$100.00
33.33
25.00
Question 11
2.5 points Save An
Paris has a weekly income that she spends on two goods: fast food meals and sugary drinks. If she spends all her money on fast food meals, she can buy 8 of them. If she spends all her money on sugary drinks, she can buy 9 of them. Calculate the
opportunity cost of one y drink (in terms of fast food meals) your answers as a number with 2 c
(like 2.38 or 1.00 or 9.35) as your answer.
16.01
14.2%
12.50
11.11
10.00
$17.00
16.00
15.00
14.00
14.00
15.71
17.50
19.44
Average Total
Cost
$117.00
66.00
MC
34.00
30.67
SO
30.00
30.55
31.60
33.09
MR
Marginal Cost
$17
ATC
1.5 points
(choose one and write it out exactly as it is written: increase,…
Chapter 13 Solutions
Microeconomics (13th Edition)
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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Similar questions
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- 13. Firms in Competitive Markets The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses. Which of the following statements is true about the price of fertilizer? Check all that apply. The price of fertilizer must be greater than average total cost. The price of fertilizer must be greater than marginal cost. The price of fertilizer must be greater than average variable cost. The following graphs show the cost curves faced by a typical firm, the demand for fertilizer, and possible price and supply curves. Price and Costs MC Firm ATC AVC Quantity Price No U 1 Demand If firms in the market are producing output but are currently making economic losses, market and indicates the corresponding supply curve Market Quantity 52 S illustrates the present situation for the typical firm in thearrow_forwardUse the demand curve below to answer questions 7 through 10. Price 1 0.9 0.8 0.7 0.6- 0.5- 04- 0.3- 0.2 0.1 0- 0 1000 2000 3000 4000 5000 6000 7000 8000 Quantity What's the marginal value at a quantity of 4,000? Answer herearrow_forwardIllustrate and explain the effect of the increased use of plant-based milk on the overall milk market.arrow_forward
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