EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 16, Problem 16.10P
a
To determine
Amount of bribe to obtain
b)
To determine
Whether bribes represent a welfare cost from rent seeking.
c)
To determine
Welfare cost of rent seeking activity.
Expert Solution & Answer
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Assume that the demand function for tuna in a small coastal town is given by
140
p =
(200 < q < 800),
q0.5
where p is the price (in dollars) per pound of tuna, and q is the number of pounds of tuna that can be sold at the price p in one month.
(a) Calculate the price (in $ per Ib) that the town's fishery should charge for tuna in order to produce a demand of 400 pounds of tuna per month.
per Ib
(b) Calculate the monthly revenue R (in dollars) as a function of the number of pounds of tuna q.
R(q) =
(c) Calculate the revenue and marginal revenue (derivative of the revenue with respect to q) at a demand level of 400 pounds per month.
revenue
marginal revenue
per Ib of tuna
Interpret the results.
At a demand level of 400 pounds per month, the revenue is $
and increasing at a rate of $
per additional pound of tuna.
Side 1
A report shows that the catch of a fish stock can be increased. The fishing authority wishes to subsidise the effort, so that the fisher's effort is 3.5.
The fishers marginal revenue (MR) function is: MR = 1700 -300*X
Where X is the fishing effort
The fisher's marginal cost (MC) function is: TC = 500 + 200*X
Where X is the fishing effort.
How much should the subsidy per effort be, so that the fisher's effort is 3.5?
Vælg én svarmulighed
O 550
O 700
O 600
O 650
Each consumer has the following demand for annual visits to Planet Fitness: Q = 200 - P (or P = 200 - Q), where Q is the number of visits to Planet Fitness per year and P is the price per visit. In western Maryland, Planet Fitness has a monopoly on the gym market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that Planet Fitness could charge each customer?
Annual fee = $18,050; P = $0 for each visit.
Annual fee = $20,000; P = $0 for each visit.
Annual fee = $18,050; P = $10 for each visit.
Annual fee = $20,000; P = $10 for each visit.
Chapter 16 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 16.2 - Prob. 1TTACh. 16.2 - Prob. 2TTACh. 16.2 - Prob. 1MQCh. 16.3 - Prob. 1MQCh. 16.3 - Prob. 2MQCh. 16.3 - Prob. 1TTACh. 16.3 - Prob. 2TTACh. 16.4 - Prob. 1MQCh. 16.4 - Prob. 2MQCh. 16.7 - Prob. 1MQ
Ch. 16.7 - Prob. 2MQCh. 16.8 - Prob. 1TTACh. 16.8 - Prob. 2TTACh. 16.8 - Prob. 1.1TTACh. 16.8 - Prob. 2.1TTACh. 16 - Prob. 1RQCh. 16 - Prob. 2RQCh. 16 - Prob. 3RQCh. 16 - Prob. 4RQCh. 16 - Prob. 5RQCh. 16 - Prob. 6RQCh. 16 - Prob. 7RQCh. 16 - Prob. 8RQCh. 16 - Prob. 9RQCh. 16 - Prob. 10RQCh. 16 - Prob. 16.1PCh. 16 - Prob. 16.2PCh. 16 - Prob. 16.3PCh. 16 - Prob. 16.4PCh. 16 - Prob. 16.5PCh. 16 - Prob. 16.6PCh. 16 - Prob. 16.7PCh. 16 - Prob. 16.8PCh. 16 - Prob. 16.9PCh. 16 - Prob. 16.10P
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