Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 12, Problem 23APA
(a)
To determine
What are the effects of the increase in I's demand for phones on the market and on the individual producer in the short run.
(b)
To determine
Illustration of the effects of increase in I's demand for phones on the market and on the individual producer in the short run.
(c)
To determine
The effects of the increase in I's demand for phones on the market and on the individual producer in the long run.
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15. Explain the following quotations;
1. " Greater production is not tantamount to greater profit"2. "Higher selling price does not equate to higher profit"!
Wenatchee is the apple capital of the world (or at least that's what the sign says). One of the many great things about apples is that the firms who produce it are likely price takers in both input and output markets.
Imagine that there is a hurricane in Florida which damages a large part of the orange crop which is typically grown there.
a. Show the effect of this in the orange market.
b. Show the effect of this in the apple market. (Assume that no apples are grown in Florida.)
c. Show the effect of this in the market for orchard workers in Wenatchee (the apple capital of the world). Please make sure to label the axes appropriately for a labor market. Briefly explain the reason for what you draw here in relation to the other parts.
Firm Profit, Loss, and Shut Down
Based upon the graph, answer the following questions:
1) What is the production level that will maximize the profit for the firm?
2) What is the profit-maximizing price the firm will charge?
3) Will the firm incur an economic gain or economic loss?
4) What will the dollar amount of economic gain or economic loss be?
5) What will be the price and quantity where the firm will shut down?
Chapter 12 Solutions
Macroeconomics
Ch. 12.1 - Prob. 1RQCh. 12.1 - Prob. 2RQCh. 12.1 - Prob. 3RQCh. 12.1 - Prob. 4RQCh. 12.2 - Prob. 1RQCh. 12.2 - Prob. 2RQCh. 12.2 - Prob. 3RQCh. 12.3 - Prob. 1RQCh. 12.3 - Prob. 2RQCh. 12.3 - Prob. 3RQ
Ch. 12.4 - Prob. 1RQCh. 12.4 - Prob. 2RQCh. 12.5 - Prob. 1RQCh. 12.5 - Prob. 2RQCh. 12.5 - Prob. 3RQCh. 12.6 - Prob. 1RQCh. 12.6 - Prob. 2RQCh. 12.6 - Prob. 3RQCh. 12.6 - Prob. 4RQCh. 12 - Prob. 1SPACh. 12 - Prob. 2SPACh. 12 - Prob. 3SPACh. 12 - Prob. 4SPACh. 12 - Prob. 5SPACh. 12 - Prob. 6SPACh. 12 - Prob. 7SPACh. 12 - Prob. 8SPACh. 12 - Prob. 9SPACh. 12 - Prob. 10APACh. 12 - Prob. 11APACh. 12 - Prob. 12APACh. 12 - Prob. 13APACh. 12 - Prob. 14APACh. 12 - Prob. 15APACh. 12 - Prob. 16APACh. 12 - Prob. 17APACh. 12 - Prob. 18APACh. 12 - Prob. 19APACh. 12 - Prob. 20APACh. 12 - Prob. 21APACh. 12 - Prob. 22APACh. 12 - Prob. 23APA
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