Foundations of Economics, Student Value Edition (8th Edition)
8th Edition
ISBN: 9780134489230
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 16, Problem 5IAPA
To determine
To calculate:
The profit maximizing price, output, and economic profit if the circus company charges a single price for all kind of tickets.
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Question 2
suppose Boeing is the only firm that produces aeroplanes in the world. The marginal cost of producing an aeroplace of Boeing is $50,000. The quantity demanded for Boeing's aeroplane is provided as bleow.
Table1 -Demand schedule
Price/ Quantity
(thousands $)
40,000 /10
30,000 /30
20,000 / 60
10,000 / 100
1) calculate Boeing's total revenue and marginal revenue. How many aeroplances will Boeing Produce?
Full explain this question and text typing work only
We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
A publisher faces the following demand schedule for the next novel from one of itspopular authors:Price Quantity Demanded$ 100 0 novels90 100,00080 200,00070 300,00060 400,00050 500,00040 600,00030 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishingthe book is a constant $10 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity woulda profit-maximizing publisher choose? What price would it charge?b. Compute marginal revenue. (Recall that MR = ΔTR/ΔQ.) How does marginal revenuecompare to the price? Explain.C. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantitydo the marginal-revenue and marginal-cost curves cross? What does this signify?d. In your graph, shade in the deadweight loss. Explain in words what this means
e. If the author were paid $3 million instead of $2 million to write the book, how wouldthis affect the publisher’s decision regarding what…
Maggie is one firm of many in the market for toothpaste, which is in long-run equilibrium.
1,a. Draw a diagram showing Maggie’s demand curve, marginal-revenue curve, average total cost curve, and marginal-cost curve. Label Sparkle’s profit-maximizing output and price.
b. What is Maggie’s profit? Explain.
c. On your diagram, show the consumer surplus derived from the purchase of Maggie toothpaste. Also show the deadweight loss relative to the efficient level of output.
d. If the government forced Maggie to produce the efficient level of output, what would happen to the firm? What would happen to Maggie’s customers?
Chapter 16 Solutions
Foundations of Economics, Student Value Edition (8th Edition)
Ch. 16 - Prob. 1SPPACh. 16 - Prob. 2SPPACh. 16 - Prob. 3SPPACh. 16 - Prob. 4SPPACh. 16 - Prob. 5SPPACh. 16 - Prob. 6SPPACh. 16 - Prob. 7SPPACh. 16 - Prob. 8SPPACh. 16 - Prob. 9SPPACh. 16 - Prob. 10SPPA
Ch. 16 - Prob. 11SPPACh. 16 - Prob. 1IAPACh. 16 - Prob. 2IAPACh. 16 - Prob. 3IAPACh. 16 - Prob. 4IAPACh. 16 - Prob. 5IAPACh. 16 - Prob. 6IAPACh. 16 - Prob. 7IAPACh. 16 - Prob. 8IAPACh. 16 - Prob. 9IAPACh. 16 - Prob. 10IAPACh. 16 - Prob. 1MCQCh. 16 - Prob. 2MCQCh. 16 - Prob. 3MCQCh. 16 - Prob. 4MCQCh. 16 - Prob. 5MCQCh. 16 - Prob. 6MCQCh. 16 - Prob. 7MCQ
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