Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
Microeconomics: Principles, Problems, & Policies (McGraw-Hill Series in Economics)
20th Edition
ISBN: 9780077660819
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 8, Problem 1DQ
To determine

The error in the behavior.

Expert Solution & Answer
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Explanation of Solution

Here, the individual desires and enjoys to be committed to the stupid things which leads towards heavy debts. If the actions have unforeseen consequences, we could have categorized them under the errors. But since, the individual likes to commit such actions and get into the debt issues knowingly, the actions cannot be considered as an error.

Here, even though, the individual does stupid things, he gets the desired results. Thus, they do not result in reducing the chance for the success. Thus, the stupid behavior of an individual does not constitute any systematic errors. Thus, he did not commit any errors.

Economics Concept Introduction

Concept introduction:

Error: According to theeconomists, error is an action which reduces the chance of success for an action.

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19. (20 points in total) Suppose that the market demand curve is p = 80 - 8Qd, where p is the price per unit and Qd is the number of units demanded per week, and the market supply curve is p = 5+7Qs, where Q5 is the quantity supplied per week. a. b. C. d. e. Calculate the equilibrium price and quantity for a competitive market in which there is no market failure. Draw a diagram that includes the demand and supply curves, the values of the vertical- axis intercepts, and the competitive equilibrium quantity and price. Label the curves, axes and areas. Calculate both the marginal willingness to pay and the total willingness to pay for the equilibrium quantity. Calculate both the marginal cost of the equilibrium quantity and variable cost of producing the equilibrium quantity. Calculate the total surplus. How is the value of total surplus related to your calculations in parts c and d?
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