EBK MICROECONOMICS
9th Edition
ISBN: 8220103630955
Author: Rubinfeld
Publisher: PEARSON
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Question
Chapter 8, Problem 13E
(a)
To determine
Identify the number of hot dogs that each vendor wants to sell.
(b)
To determine
Identify the changes in the price.
(c)
To determine
Identify the number of vendors in the hot dog industry.
(d)
To determine
Identify the price level if the city issue permits to regulate the hot dog vendors.
(e)
To determine
Identify the highest price that a vendor would pay for a permit.
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Consider the market for tilapia. Ripple Rock Fish Farms, a small family fishery in Ohio, and The Fishin’ Company, a large corporate supplier, are both producers of tilapia. The marginal cost curves for both firms are shown in the accompanying graph.
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a. The equilibrium price at this market is $2.5. At this price, is the firm earning economic profit or is itincurring economic losses?b. Is the firm operating in a competitive market based on the given information? Why?c. Suppose the price of raspberries increases to $5. How would you answer a. and b. in this case?d. If the market is indeed competitive, what will happen after the price increase in c.? What will bethe final price and the long-term profit of the firm?
The table shows some of the costs of production for Marie's Fortune Cookies. The fortune cookie market is a perfectly competitive market.
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of $ a day.
Total
product
(batches
per day)
1
2
3
4
5
6
7
8
Average Average Average
fixed variable total
cost
cost
cost
(dollars per batch)
44.00 132.00
88.00
44.00
29.33
22.00
17.60
14.67
12.57
11.00
37.00
32.00
29.00
28.20
29.00
32.00
37.50
81.00
61.33
51.00
45.80
43.67
44.57
48.50
**
***
****
****
Marginal
cost
30.00
21.99
20.01
25.00
33.02
49.97
76.01
Chapter 8 Solutions
EBK MICROECONOMICS
Ch. 8 - Prob. 1RQCh. 8 - Prob. 2RQCh. 8 - Prob. 3RQCh. 8 - Prob. 4RQCh. 8 - Prob. 5RQCh. 8 - Prob. 6RQCh. 8 - Prob. 7RQCh. 8 - Prob. 8RQCh. 8 - Prob. 9RQCh. 8 - Prob. 10RQ
Ch. 8 - Prob. 11RQCh. 8 - Prob. 12RQCh. 8 - Prob. 13RQCh. 8 - Prob. 14RQCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Suppose you are the manager of a watchmaking firm...Ch. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - A sales tax of 1 per unit of output is placed on a...Ch. 8 - Prob. 15E
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