EBK PRINCIPLES OF MICROECONOMICS
7th Edition
ISBN: 8220101472380
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 15, Problem 2PA
Subpart (a):
To determine
The consumer surplus, producer surplus , and total surplus.
Subpart (b):
To determine
The consumer surplus, producer surplus, and total surplus.
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QUESTION 1
You are currently on your summer break. You could either enjoy your summer in Hawaii with your friends or
open a sausage stall at the local market with your mom, knowing that the market for sausages is perfectly
competitive.
1. Going to Hawaii with your friends is your explicit cost when deciding to enter the market.
2. If you and your mom decide to open a sausage stall, your demand curve as a seller is perfectly elastic.
3. If you and your mom are expecting to gain a normal profit, you should definitely not enter the market.
Which of the above statements are true?
O Only 1 is true.
Only 2 is true.
Both 1 and 2 are true.
Both 2 and 3 are true.
All three are true.
Comparing a perfectly competitive market to a monopoly, which of the following is true?
a.
Price will be higher and quantity will be lower in the perfectly competitive market than in the monopoly.
b.
Price will be equal to marginal revenue in the perfectly competitive market but will be higher than marginal revenue in the monopoly.
c.
at that point on the market demand curve which intersects the marginal cost curve.
d.
Price will be higher than marginal cost in the perfectly competitive market but will be equal to marginal cost in the monopoly.
Show in graph a consumers’ surplus when the market is perfectly competitive and when its monoplized.
Chapter 15 Solutions
EBK PRINCIPLES OF MICROECONOMICS
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1CQQCh. 15 - Prob. 2CQQCh. 15 - Prob. 3CQQCh. 15 - Prob. 4CQQCh. 15 - Prob. 5CQQ
Ch. 15 - Prob. 6CQQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QRCh. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 7PACh. 15 - Prob. 8PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PA
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