Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 1, Problem 12RQ
What is the difference between
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Consider a standard Hotelling model of competition with quadratic transportation costs. The consumers are located uniformly
along a segment of unit length. There are two firms, A and B, located at the opposite ends of the segment. Each firm has
constant marginal costs 2. Each consumer buys at most one unit of product and gets utility 20. Each consumer incurs travel
cost of 4 times the square of traveled distance.
Find equilibrium price and profit of firm A when firms set a unform price for the entire Hotelling segment.
Suppose now that firms can price discriminate between consumers located in the interval
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(interval 1) and those located
in the interval
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(interval 2). Find equilibrium prices of firm A and B on the interval 1.
Answer:
equilibrium uniform price of firm A =
profit of firm A under uniform pricing =
equilibrium price of firm A on interval 1 =
equilibrium price of firm B on interval 1 =
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Please send me the graph for part f
You are planning to open a new Italian restaurant in your hometown where there are three other Italian restaurants. You plan to distinguish your restaurant from your competitors by offering northern Italian cuisine and using locally grown organic produce. What is likely to happen in the restaurant market in your hometown after you open?
Part 2
A.
While the demand curves facing your competitors becomes more elastic, your demand curve will be inelastic.
B.
The demand curve facing each restaurant owner shifts to the right.
C.
The demand curve facing each restaurant owner becomes more elastic.
D.
Your competitors are likely to change their menus to make their products more similar to yours.
Chapter 1 Solutions
Principles of Economics 2e
Ch. 1 - What is scarcity? Can you think of two causes of...Ch. 1 - Residents of the town of Smithfield like to...Ch. 1 - A consultant works for 200 per hour. She likes to...Ch. 1 - A computer systems engineer could paint his house,...Ch. 1 - What would be another example of a system in the...Ch. 1 - Suppose we extend the circular flow model to add...Ch. 1 - What is an example of a problem in the world...Ch. 1 - The chapter defines private enterprise as a...Ch. 1 - Why might Belgium, France, Italy, and Sweden have...Ch. 1 - Give the three reasons that explain why the...
Ch. 1 - What are three reasons to study economics?Ch. 1 - What is the difference between microeconomics and...Ch. 1 - What are examples of individual economic agents?Ch. 1 - What are the three main goals of macroeconomics?Ch. 1 - How did John Mayhem Keynes define economics?Ch. 1 - Are households primarily buyers or sellers in the...Ch. 1 - Are firms primarily buyers or sellers in the goods...Ch. 1 - What are the three ways that societies can...Ch. 1 - What is globalization? How do you think it might...Ch. 1 - Suppose you have a team of two workers: one is a...Ch. 1 - Why would division of labor without trade not...Ch. 1 - Can you think of any examples of free goods, that...Ch. 1 - A balanced federal budget and a balance of trade...Ch. 1 - Macroeconomics is an aggregate of what happens at...Ch. 1 - Why is it unfair or meaningless to criticize a...Ch. 1 - Suppose, as an economist, you are asked to analyze...Ch. 1 - Why do you think that most modern countries...Ch. 1 - Can you think of ways that globalization has...
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- I need help with #12 pleasearrow_forwardThe U.S. Census Bureau conducts annual surveys to obtain information on the percentage of the voting-age population that is registered to vote. Suppose that 679 employed persons and 690 unemployed persons are independently and randomly selected, and that 429 of the employed persons and 369 of the unemployed persons have registered to vote. Can we conclude that the percentage of employed workers (P1), who have registered to vote, exceeds the percentage of unemployed workers (P2), who have registered to vote? Use a significance level of α = 0.05 for the test. Step 3 of 6: Compute the weighted estimate of p, p. Round your answer to three decimal places.arrow_forwardOn Saturday nights, the population share of viewers watching various broadcast TV networks are known to be: ABC 29% CBS 28% NBC 25% Other 18% A sample of 300 viewers on Sunday night showed the following numbers watching each network: ABC 95 CBS 70 NBC 89 Other 46 46arrow_forward
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