Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 9, Problem 6P
To determine
The reasons for worse performance of the society under
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Independent University, Bangladesh
ECN-201: Principles of Microeconomics
Spring 2021
Final Assignment
1. Use the table below to answer the following questions:
Costs
Total Cost Marginal
Cost
Revenues
Price ($)
Quantity
Produced
Marginal
Revenue
Total
Quantity
Demanded
Revenue
170
160
150
140
100
140
184
2
3
3
230
280
4
5
4
5
130
120
110
100
95
335
395
6
7
8
7
475
8
575
a. Find the average fixed cost and average variable cost for the 4" unit of output.
b. How much does profit change if 6 units are sold instead of 5?
1. The following table shows the demand and supply for a popular pair of shoes sold by
Akron Enterprise Limited (AEL).
TABLE 1
Price per pair
Quantity
Quantity
Market
Pressure on
$
Demanded
supplied
Condition
price
105
25000
75000
Surplus
90
30000
70000
75
40000
60000
Downward
60
50000
50000
45
60000
35000
30
80000
20000
Shortage
15
100000
5000
Upward
Other information regarding AEL are as follows:
Fixed Cost = $2000 Variable Cost = 20Q
a. Complete the table above:
b. Graphically illustrate market equilibrium using the information in the above table.
c. Calculate and interpret the price elasticity of demand using the midpoint formula as the
price of a pair of shoe rises from $60 to $75.
d. Explain and graphically illustrate a price floor implemented by the government using an
appropriate price in the table above.
е.
If Akron Enterprise Limited sells its product at the equilibrium price, calculate total
revenue and total profit.
f.
At what level of price(s) identify above is a shut-down…
1. The following table shows the demand and supply for a popular pair of shoes sold by
Akron Enterprise Limited (AEL).
TABLE 1
Price per pair
Quantity
Quantity
Market
Pressure on
$
Demanded
supplied
Condition
price
105
25000
75000
Surplus
90
30000
70000
75
40000
60000
Downward
60
50000
50000
45
60000
35000
30
80000
20000
Shortage
15
100000
5000
Upward
Other information regarding AEL are as follows:
Fixed Cost = $2000 Variable Cost = 20Q
d. Explain and graphically illustrate a price floor implemented by the government using an
appropriate price in the table above.
e. If Akron Enterprise Limited sells its product at the equilibrium price, calculate total
revenue and total profit.
f. At what level of price(s) identify above is a shut-down price for Akron Enterprise
Limited.
g. Graphically illustrate the shutdown position for a typical firm.
Chapter 9 Solutions
Econ Micro (book Only)
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