Economics: Principles, Problems, & Policies (McGraw-Hill Series in Economics) - Standalone book
20th Edition
ISBN: 9780078021756
Author: McConnell, Campbell R.; Brue, Stanley L.; Flynn Dr., Sean Masaki
Publisher: McGraw-Hill Education
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Question
Chapter 2, Problem 6DQ
Subpart (a):
To determine
Profit and loss system in the market system and disciplinarian of the market economy.
Subpart (b):
To determine
Profit and loss system in the market system and disciplinarian of the market economy.
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250
225
Revenue Lost
200
175
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Revenue Gained
125
Demand
100
75
50
25
3
4
7
8
9.
10
QUANTITY (Fire engines)
Gilberto
increase production from 7 to 8 fire engines because the
dominates in this scenario.
True or False: If Gilberto's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, decreasing its price from
$100,000 to $50,000 would result in the same change in the production quantity and, thus, total revenue.
O True
O False
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2.
1.
PRICE (Thousands of dollars per fire engine)
1. Rio live in a town with 300 adults and 200 children, and he is thinking about putting
on a play to entertain your neighbors and make some money. A play has a fixed cost
of $2,000 except all cost like maintenance costs until two years, but selling an extra
ticket has zero marginal cost. Here are the demand schedules for his two types of
customer:
Price
Adults
Children
$10
9
100
8
200
7
300
6
300
300
100
4
300
200
300
200
300
200
1
300
200
300
200
a. To maximize profit, what price would he charge for an adult ticket? For a child's
ticket? How much the profit? (Hint: total cost for this year include fixed cost)
b. Suppose in this year, the city council passes a law prohibiting him from charging
different prices to different customers. What price does he set for a ticket now?
How much profit now? (Hint: when quantity of produced yield maximum revenue
or the sum of these both revenues sastify)
Firms must typically purchase inputs from suppliers to produce output.
What effect might suppliers have on an industry?
O A. If an input is specialized, then the supplier is likely to have the bargaining power to limit a firm's profits.
O B. Suppliers cannot affect output markets, although an output market with only a few firms is likely to have the bargaining power to limit a supplier's profits.
Oc. If many firms can supply an input, then suppliers are likely to have the bargaining power to limit a firm's profits.
O D. If only a few firms can supply an input, then markets will likely experience shortages because firms are unable to produce sufficient output.
O E. If suppliers are price takers, then a firm will likely be a price taker with no ability to raise price.
Chapter 2 Solutions
Economics: Principles, Problems, & Policies (McGraw-Hill Series in Economics) - Standalone book
Ch. 2.2 - Prob. 1QQCh. 2.2 - Prob. 2QQCh. 2.2 - Prob. 3QQCh. 2.2 - Prob. 4QQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQ
Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4P
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