Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 13, Problem 5SPA
(a)
To determine
(b)
To determine
Efficiency of the monopolist.
(c)
To determine
Impact of new wells nearby the monopolist firm.
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3.
PLEASE READ CAREFULLY AND SAY THE BEST ANSWER
The total surplus of a pure and perfect market is represented by the sum of the areas
a) ABDEFGHIJ
• b) ADEFGH
• C) ABDEFGH.
• d) ACDE
Complete the table and answer the following:
1. Sketch a graph of the table
2. Compute consumer surplus, producer surplus, and deadweight loss.
3. If the movie theater industry were perfectly competitive, how many tickets would be sold and what would be the price of each ticket? [competitive outcome, (Pcomp, Qcomp)]
Competitive price: $___ per ticket
Competitive output: ___ tickets
7. Please shade the total surplus (consumer plus producer surplus) and explain
Price
0
5
10
15
20
25
30
Demand
60
50
40
30
20
10
0
Supply
0
10
20
30
40
50
60
Chapter 13 Solutions
Macroeconomics
Ch. 13.1 - Prob. 1RQCh. 13.1 - Prob. 2RQCh. 13.1 - Prob. 3RQCh. 13.2 - Prob. 1RQCh. 13.2 - Prob. 2RQCh. 13.2 - Prob. 3RQCh. 13.2 - Prob. 4RQCh. 13.3 - Prob. 1RQCh. 13.3 - Prob. 2RQCh. 13.3 - Prob. 3RQ
Ch. 13.3 - Prob. 4RQCh. 13.4 - Prob. 1RQCh. 13.4 - Prob. 2RQCh. 13.4 - Prob. 3RQCh. 13.4 - Prob. 4RQCh. 13.5 - Prob. 1RQCh. 13.5 - Prob. 2RQCh. 13.5 - Prob. 3RQCh. 13.5 - Prob. 4RQCh. 13 - Prob. 1SPACh. 13 - Prob. 2SPACh. 13 - Prob. 3SPACh. 13 - Prob. 4SPACh. 13 - Prob. 5SPACh. 13 - Prob. 6SPACh. 13 - Prob. 7SPACh. 13 - Prob. 8SPACh. 13 - Prob. 9SPACh. 13 - Prob. 10APACh. 13 - Prob. 11APACh. 13 - Prob. 12APACh. 13 - Prob. 13APACh. 13 - Prob. 14APACh. 13 - Prob. 15APACh. 13 - Prob. 16APACh. 13 - Prob. 17APACh. 13 - Prob. 18APACh. 13 - Prob. 19APACh. 13 - Prob. 20APACh. 13 - Prob. 21APACh. 13 - Prob. 22APACh. 13 - Prob. 23APACh. 13 - Prob. 24APACh. 13 - Prob. 25APA
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Similar questions
- (Please, use graph to solve this problem) A good can be produced in a competitive industry at a cost of $10 per unit. There are 100 consumers are each willing to pay $12 each to consume a single unit of the good (additional units have no value to them.) What is the equilibrium price and quantity sold? The government imposes a tax of $1 on the good. What is the deadweight loss of this tax?arrow_forwardPlease explain with numbers instead of words b) Calculate consumer surplus, producer surplus, total surplus, and deadweight lossarrow_forwardDraw a supply curve for turkey.In your diagram, show a price of turkey and the producer surplus at that price. explain in words what this producer surplus measures.arrow_forward
- Draw a supply and Demand curve for Turkey. In equation show producer and consumer surplus. Explain why producing more turkeys would lower surplus???arrow_forward(Explain with graphics) A good can be produced in a competitive industry at a cost of $10 per unit. There are 100 consumers are each willing to pay $12 each to consume a single unit of the good (additional units have no value to them.) What is the equilibrium price and quantity sold? The government imposes a tax of $1 on the good. What is the deadweight loss of this tax? (Explain with graphics)arrow_forwardAssume competitive markets (prices are given) and that the demand is more elastic than supply. Which of the following statements is correct? A. We do not have sufficient information to infer which surplus is greater B. Consumer surplus will be larger than producer surplustyping C. Consumer surplus will be exactly the same as producer surplus D. Consumer surplus will be smaller than producer surplus. Give typing answer with explanation and conclusionarrow_forward
- How does the market equilibrium define what suppliers will stay in the market and what will leave the market? Explain based on the concept of producer surplusarrow_forwardUSE TABLE #1: The calculation you used to find the producer surplus for the efficient market for electric automobiles is 1/2 x ($ ____________ - $__________ ) x ( _____ - ________ ). (Remember to use a comma, if a comma is needed and to include the decimal point and two numbers to the right of the decimal point).arrow_forwardIn the U.S. economy consumers and producers are equally responsible for market prices and the number of units purchased (sold) in markets. Neither group has more market power than the other. Explain why you either agree or disagree with this statement.arrow_forward
- What type of equation is this? TR - PS A)Producer Cost B) Deadweight Loss C) Consumer Surplus D) Profitarrow_forward(a) Find the point (A, B, C, D, or E) that corresponds to the profit maximizing price and quantity. (Select only one letter.) (b) Which number corresponds to consumer surplus on the graph? (c) Which number corresponds to producer surplus on the graph? (d) Which number corresponds to deadweight loss on the graph?arrow_forwardPlease no written by hand solutions Part 2 Assume the market price for tangerines is $18.00 per bushel. At the market price, tangerine growers are willing to supply a quantity of 12,000 bushels per week. The quantity supplied drops to zero when the price falls to $5.00 per bushel. Construct a graph showing this data, calculate the total producer surplus in the market for tangerines, and show the total producer surplus on the graph.arrow_forward
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