Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
8th Edition
ISBN: 9780134641843
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Textbook Question
Chapter 17, Problem 6IAPA
Use the following information to work Problems 5 and 6.
Sony announces Smart Tennis Sensor
Tennis racket maker Babolat introduced its smart racket Play Pure Drive in 2013. Smash and Shot Stats soon followed. Now Sony is partnering with Wilson to make Smart Tennis Sensor, a device that sits at the bottom of a racket’s handle and tracks every metric and statistic that a tennis player or coach could need.
Explain why the economic profit that Babolat and Sony make in this market is likely to be temporary. Draw a graph to illustrate the outcome in the long run. Show the excess capacity and markup in the long run.
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Question 3: The situation facing by firm “Smart”, a producer of running shoes, is shown in the following figure.
Figure attached and can see in end
What quantity does Smart Shoes produce?
Answer:
2. What is the price of a pair of Smart shoes?
Answer:
3. What is Smart’s economic profit or economic loss?
Answer:
4. Why MR curve is below to demand curve?
Answer:
Question 4: In the market for running shoes, all the firms face a similar demand curve and have similar cost curves to those of Smart in question 3.
a.) What happens to the number of firms producing running shoes in the long run?
Answer:
b.) What happens to the price of running shoes in the long run?
Answer:
c.) What happens to the quantity of running shoes produced by Smart in the long run?
Answer:
d.) What happens to the quantity of running shoes in the entire market in the long run?
Answer:
e. ) Does Smart shoes have excess capacity in the long run?
Answer:
f.) Why, if Smart firm shoes has…
A purely competitive wheat farmer can sell any wheat he grows for $10 per bushel. His five acres of land show diminishing returns because some are better suited for wheat production than others. The first acre can produce 1,000 bushels of wheat, the second acre 900, the third 800, and so on. Instructions: Enter your answers as a whole number. a. Use the table below to help you answer the following questions.. How many bushels will each of the farmer’s five acres produce? How much revenue will each acre generate? What are the TR and MR for each acre?
Create a table with the amount of acres (1-5), that acre's yield (bushels), that acre's revenue, TR, and MR.
b. If the marginal cost of planting and harvesting an acre is $7,000 per acre for each of the five acres, how many acres should the farmer plant and harvest?
acres
4. Explain the significant difference of the product distributed by a perfect competition which is homogenous product and differentiated product for the monopolistic completion. Cite an example in your arguments.
Chapter 17 Solutions
Foundations of Economics, Student Value Edition Plus MyLab Economics with eText -- Access Card Package (8th Edition)
Ch. 17 - Prob. 1SPPACh. 17 - Prob. 2SPPACh. 17 - Prob. 3SPPACh. 17 - Prob. 4SPPACh. 17 - Prob. 5SPPACh. 17 - Prob. 6SPPACh. 17 - Prob. 7SPPACh. 17 - Prob. 8SPPACh. 17 - Prob. 9SPPACh. 17 - Prob. 10SPPA
Ch. 17 - Washtenaw Dairy in Ann Arbor, Michigan, sells 63...Ch. 17 - Prob. 2IAPACh. 17 - Prob. 3IAPACh. 17 - Prob. 4IAPACh. 17 - Prob. 5IAPACh. 17 - Use the following information to work Problems 5...Ch. 17 - Prob. 7IAPACh. 17 - Prob. 8IAPACh. 17 - Prob. 9IAPACh. 17 - Prob. 1MCQCh. 17 - Prob. 2MCQCh. 17 - Prob. 3MCQCh. 17 - Prob. 4MCQCh. 17 - Prob. 5MCQCh. 17 - Prob. 6MCQCh. 17 - Prob. 7MCQ
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