EP ECONOMICS,AP EDITION-CONNECT ACCESS
20th Edition
ISBN: 9780021403455
Author: McConnell
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Textbook Question
Chapter 13.4, Problem 2QQ
The D2e segment of the demand curve D2eD1 graph (b) implies that:
a. this firm’s total revenue will fall if it increases its price above P0.
b. other firms will match a price increase above P0.
c. the firm’s relevant marginal-revenue curve will be MR1 for price increases above P0.
d. the product in this industry is necessarily standardized.
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Kyrie owns a company in a competitive market that generates $800 in total
revenue and has a marginal revenue of $20. If Kyrie is maximizing profit what
quantity of goods are being sold and at what price?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select
an answer.
a
20 units are being sold at a price of $40.
b
20 units are being sold at a price of $20.
40 units are being sold at a price of $80.
d.
40 units are being sold at a price of $20.
e
80 units are being sold at a price of $20.
f
80 units are being sold at a price of $40.
Kyrie owns a company in a competitive market that generates $800 in total revenue and has a marginal revenue of $20. If Kyrie is
maximizing profit what quantity of goods are being sold and at what price?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a 20 units are being sold at a price of $40.
b
20 units are being sold at a price of $20.
40 units are being sold at a price of $80.
d
40 units are being sold at a price of $20.
80 units are being sold at a price of $20.
e
80 units are being sold at a price of $40.
Consider a market with the following demand
curve:
Q^d=1000-Yxp
Assume the marginal cost of the only firm
supplying this market as MC=Q/2
A.Derive an expression of elasticity of demand
in terms of Y. Show your work
B.Derive an expression for the slope of the
isoprofit curve of this firm in terms of Y.
Explain.
|c.Now derive an expression for the markup
chosen by this firm in terms of Y.
d.What happens to the elasticity (part a) and
the markup (part c) if Y goes up? What can you
say about the relationship between elasticity
and the markup from this observation? Explain.
e.calculate the profit-maximizing quantity and
Chapter 13 Solutions
EP ECONOMICS,AP EDITION-CONNECT ACCESS
Ch. 13.1 - Prob. 1QQCh. 13.1 - Prob. 2QQCh. 13.1 - Prob. 3QQCh. 13.1 - Prob. 4QQCh. 13.4 - Prob. 1QQCh. 13.4 - The D2e segment of the demand curve D2eD1 graph...Ch. 13.4 - Prob. 3QQCh. 13.4 - Prob. 4QQCh. 13.A - Prob. 1ADQCh. 13.A - Prob. 2ADQ
Ch. 13.A - Prob. 3ADQCh. 13.A - Prob. 4ADQCh. 13.A - Prob. 1ARQCh. 13.A - Prob. 2ARQCh. 13.A - Prob. 3ARQCh. 13.A - Prob. 1APCh. 13.A - Prob. 2APCh. 13 - Prob. 1DQCh. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQCh. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - Prob. 4RQCh. 13 - Prob. 5RQCh. 13 - Prob. 6RQCh. 13 - Prob. 7RQCh. 13 - Prob. 8RQCh. 13 - Prob. 1PCh. 13 - Prob. 2PCh. 13 - Prob. 3P
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