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 9P
To determine
Change in the price when a fine is imposed by the government.
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A firm has some market power and so can choose to change its price. An analyst employed by the
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management that they should cut the price. Is she right to suggest lowering the price? Explain
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Harriet McNeil, proprietor of McNeil's Auto Mall, believes that it is good business for her automobile dealership to have more customers on the lot than can be served, as she believes this creates an impression that demand for the automobiles on her lot is high. However, she also understands that if there are far more customers on the lot than can be served by her salespeople, her dealership may lose sales to customers who become frustrated and leave without making a purchase.
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Maximum Revenue
Jesaki Electronics manufactures and sells a smartphones per week. The weekly price-demand and
cost equations are, respectively,
p= 536 - 0.40 x and C(x) = 19,932 + 23 x.
Suppose Jesaki Electronics wants to maximize weekly revenue. Compute the following quantities.
1. How many phones should be produced each week?
phones. Round to 2 decimal
places.
2. What price should Jesaki charge for the phones? $
per phone. Round to the nearest
cent.
3. What is the maximum weekly revenue? $
per week. Round to the nearest cent.
Enter the result for 1.
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34%
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Chapter 6 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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