Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 15, Problem 15.3.5PA
Subpart (a):
To determine
Tax effect.
Subpart (b):
To determine
Tax effect.
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Students have asked these similar questions
Tecky Corp is a monopoly in the market of product Y. Suppose you are the marketing manager
of Tecky Corp. You have gathered some information about product Y and the cost of Tecky Corp.
as shown in the table below.
Total cost $
Unit Price $
Total revenue $
Quantity
300
1
680
680
430
560
1,120
592
440
1,320
3
792
4
370
1,480
1,024
1,400
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210
1,626
1,050
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2,025
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800
2,432
You are in a meeting with the CEO of Tecky Corp. The CEO asks the following question
A.
during the meeting:
"We should be able to get more revenue as we sell more units. I see the total revenue rises
from the quantity of 1 to 4. However, why does the total revenue start falling from the
quantity of 5 onward?"
Explain to the CEO why this is the case.
13. You just got a patent for the first commercial self-driving car. The following table shows
the elasticity of the demand and the marginal cost of production of your cars in several
production centers across the globe. Assuming that this are constant, can you approximate
what would be the optimal price for your cars?
City Marginal Cost Elasticity
Price
Wolfburg, Germany
Barcelona, Spain
Tokyo, Japan
Ulsan, South Korea
East London, South Africa
Mexico City, Mexico
$20, 000
$18, 000
$22, 000
$16, 000
$10, 000
$12, 000
-1.5 $60, 000.00
$24, 000.00
$33, 000.00
$32, 000.00
$11, 428.60
$14, 400.00
-4.0
-3.0
-2.0
-8.0
-6.0
Explain whether the following sentence makes Good Economic Sense: “The way to tell if a business has monopoly power is to count the number of substitutes for that business’s product.”
Chapter 15 Solutions
Economics (7th Edition) (What's New in Economics)
Ch. 15 - Prob. 15.1.1RQCh. 15 - Prob. 15.1.2RQCh. 15 - Prob. 15.1.3PACh. 15 - Prob. 15.1.4PACh. 15 - Prob. 15.1.5PACh. 15 - Prob. 15.1.6PACh. 15 - Prob. 15.2.1RQCh. 15 - Prob. 15.2.2RQCh. 15 - Prob. 15.2.3RQCh. 15 - Prob. 15.2.4RQ
Ch. 15 - Prob. 15.2.5PACh. 15 - Prob. 15.2.6PACh. 15 - Prob. 15.2.7PACh. 15 - Prob. 15.2.8PACh. 15 - Prob. 15.2.9PACh. 15 - (Related to the Apply the Concept an page 512) Why...Ch. 15 - Prob. 15.2.11PACh. 15 - Prob. 15.2.12PACh. 15 - Prob. 15.2.13PACh. 15 - Prob. 15.3.1RQCh. 15 - Prob. 15.3.2RQCh. 15 - Prob. 15.3.3RQCh. 15 - Prob. 15.3.4PACh. 15 - Prob. 15.3.5PACh. 15 - Prob. 15.3.6PACh. 15 - Prob. 15.3.7PACh. 15 - Prob. 15.3.8PACh. 15 - Prob. 15.3.9PACh. 15 - Prob. 15.3.10PACh. 15 - Prob. 15.4.1RQCh. 15 - Prob. 15.4.2RQCh. 15 - Prob. 15.4.3PACh. 15 - Prob. 15.4.4PACh. 15 - Prob. 15.4.5PACh. 15 - Prob. 15.4.6PACh. 15 - Prob. 15.4.7PACh. 15 - Prob. 15.5.1RQCh. 15 - Prob. 15.5.2RQCh. 15 - Prob. 15.5.3RQCh. 15 - Prob. 15.5.4PACh. 15 - Prob. 15.5.5PACh. 15 - Prob. 15.5.6PACh. 15 - Prob. 15.5.7PACh. 15 - Prob. 15.5.8PACh. 15 - Prob. 15.5.9PACh. 15 - Prob. 15.5.10PACh. 15 - Prob. 15.5.11PACh. 15 - Prob. 15.5.12PACh. 15 - Prob. 15.5.13PACh. 15 - Prob. 15.1CTECh. 15 - Prob. 15.2CTECh. 15 - Prob. 15.3CTE
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