Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Chapter 6, Problem 10Q
To determine
The meaning of
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Chapter 6 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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- As the only producer in the apple market, at what price, how many apples would Alex sell per week in order to maximize his economic profit? Calculate his producer surplus.arrow_forwardThe graph shows the cost curve of a firm in a competitive market. If the market price is $30, what should the firm do A: exit the market completely B: decrease production c: temporarily shut down production D; increase productionarrow_forwardStuck on this question for hours. Thanks for your help <3 The market demand for Ramen noodle bowls is Q=568-4P. The market supply for Ramen noodle bowls is given by P=5+4Q. Assume the market for Ramen noodle bowls is perfectly competitive. What is market QUANTITY? Enter a number only.arrow_forward
- Farmer Johnson producers Eggs in a perfectly competitive egg market. The short run cost curves are displayed below. $4.00 MC $3.50 ATC AVC $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0 20 40 60 80 100 120 140 160 Dozens of Eggs Price of Eggsarrow_forwardConsider a perfectly competitive market characterized by a market supply equal to QS=32*P and a market demand equal to QD=400-8*P. What is the market equilibrium quantity?arrow_forwardHomework Demand equation of a firm is q = V75 – pp and supply equation of this firm is q = p/2 – 20 , determine consumers' surplus and producers' surplus under the market equilibrium. Sketch the graph.arrow_forward
- Suppose the market for pizza is a perfectly competitive market—that is, sellers take the market price as given. Alex owns a restaurant where he sells pizza. The following graph shows Alex's weekly supply curve, represented by the orange line. Point A represents a point along his supply curve. The price of pizza is $3.00 per slice, as shown by the horizontal black line. From the previous graph, you can tell that Alex is willing to supply his 8th slice of pizza for____each week. Since he receives $3.00 per slice, the producer surplus he gains from supplying the 8th slice of pizza is___. Suppose the price of pizza were to rise to $3.75 per slice. At this higher price, Alex would receive a producer surplus of____from the 8th slice of pizza he sells. The following graph shows the weekly market supply of pizza in a small economy. Use the purple point (diamond symbol) to shade the area representing producer surplus (PS) when the price (P) of pizza is $3.00 per slice. Then, use the…arrow_forwardUse the table below to answer the question. The Waco Kid's Cowboy Hats Marginal Cost (dollars) 1st hat $24 2nd hat 30 3rd hat 38 4th hat 46 The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the market price of The Waco Kid's cowboy hats is $40, then Group of answer choices: producer surplus will equal $28. there will be a surplus; as a result, the price will fall to $24. producer surplus will equal $24. producer surplus from the first hat will equal $40.arrow_forwardSuppose that the demand for broccoli is given by: Q=1000-5P where Q is quantity per year measured in hundreds of bushels and P is the price in dollars per hundred bushels. The long-run supply curve for broccoli is given by: Q=4P-80 Show that the equilibrium quantity here is Q= 400. At this output, what is the equilibrium price? How much in total is spent on broccoli? What is consumer surplus at this equilibrium? What is producer surplus at this equilibrium? How much in total consumer and producer surplus would be lost if Q= 300 instead of Q= 400? Show how the allocation between suppliers and demanders of the loss of total consumer and producer surplus described in part (b) depends on the price at which broccoli is sold. How would the loss be shared if P= 140? How about if P= 95? What would be the total loss of consumer and producer surplus if Q= 450 rather than Q= 400? Show that the size of this total loss also is independent of the price at which the broccoli is sold. Now suppose the…arrow_forward
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