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EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 15, Problem 9IAPA
To determine
To explain:
The long run effects of pollution crackdown.
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13. You just got a patent for the first commercial self-driving car. The following table shows
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Consider a town in which only two residents, Larry and Megan, own wells that produce water safe for drinking. Larry and Megan can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.
Price
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Total Revenue
(Dollars per gallon)
(Gallons of water)
(Dollars)
6.00
0
0
5.50
45
$247.50
5.00
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$450.00
4.50
135
$607.50
4.00
180
$720.00
3.50
225
$787.50
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$810.00
2.50
315
$787.50
2.00
360
$720.00
1.50
405
$607.50
1.00
450
$450.00
0.50
495
$247.50
0
540
0
Suppose Larry and Megan form a cartel and behave as a monopolist. The profit-maximizing price is
per gallon, and the total output is
gallons. As part of their cartel agreement, Larry and Megan agree to split production equally.
Suppose that Larry and Megan have been successfully operating as a cartel. They each charge the monopoly price and sell half of the…
Consider a town in which only two residents, Hubert and Kate, own wells that produce water safe for drinking. Hubert and Kate can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.
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Quantity Demanded
Total Revenue
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(Gallons of water)
(Dollars)
6.00
0
0
5.50
45
$247.50
5.00
90
$450.00
4.50
135
$607.50
4.00
180
$720.00
3.50
225
$787.50
3.00
270
$810.00
2.50
315
$787.50
2.00
360
$720.00
1.50
405
$607.50
1.00
450
$450.00
0.50
495
$247.50
0
540
0
Suppose Hubert and Kate form a cartel and behave as a monopolist. The profit-maximizing price is____per gallon, and the total output is_____gallons. As part of their cartel agreement, Hubert and Kate agree to split production equally. Therefore, Hubert's profit is
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Chapter 15 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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Similar questions
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