Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 14, Problem 12Q
To determine
The market concentration of two industries, given their respective HHI values.
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Given the input-output matrix below, find the output matrix if final demand changes to 500 for water, 180 for electric power, and 800 for agriculture.
Industry
Electric
Power
Industry:
Water
Electric Power
Agriculture
Other
Water
200
100
300
400
The output matrix is X=
(Round to two decimal places as needed.)
480
120
240
360
Agriculture Final Demand
180
240
120
60
290
140
600
QUESTION 14
Sunglasses manufacturer Oakley, Inc. produces high-end and low-end versions of their performance sunglanses. They estimate
that the demands for their products are given by:
High-end sunglasses: P= 130 - 20H , and
Low-end sunglasses: P 80 - QL, where Q is measured in 1000 sunglasses, "H" denotes High-end and "L" denctes Low-end
Both types of sunglasses are produced on the same production line in the same facility, so the marginal cost of producing and
selling both types of sunglasses is constant at $30.
Supposing that (1) the two demands are independent and (H) Oakley can produce and market the sunglasses such that the high-
and low-end markets are successfully segmented, what are the profit-maximizing prices Oakley would dharge for each version?
O oakley will set price equal to marginal cost for both versions, le, P $30.
O By the "midpoint rule", PH- $65 and PL $40.
OPH- $80 and PL-$55.
OPH- $130 and PL $80.
K Given the input-output matrix below, find the output matrix if final demand changes to 400 for water, 180 for electric power, and 700 for agriculture. Industry: Water Electric Power Agriculture Other Water 120 120 240 720 The output matrix is X = (Round to two decimal places as needed.) Industry Electric Power 400 200 100 300 8 Agriculture Final Demand 180 240 120 60 260 170 500
Chapter 14 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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