Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
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
150
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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Σ
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)
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
300
300
100
4
300
200
300
200
300
200
1
300
200
300
200
c. Suppose next year government imposes tax equals $4 for selling an every extra
ticket, what price would he charge for an adult ticket? For a child's ticket? How
much the profit? Assume the law prohibiting him from charging different prices
to different customers doesn't exist. (Hint: fixed cost doesn't include)
Chapter 2 Solutions
Microeconomics
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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