Economics Plus MyLab Economics with Pearson eText (2-semester Access) -- Access Card Package (6th Edition) (The Pearson Series in Economics)
6th Edition
ISBN: 9780134417295
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 3, Problem 3.1.12PA
To determine
Close substitute goods.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Kiran and Amna live in IBA hostel. They own a small business in which they make brownies and pasta and sell them to people on campus. As shown in the table on the following page, Kiran can make 30 brownies per hour but only 6 bowls of pasta. Amna is a bit slower and can make only 24 brownies or 4 bowls of pasta in an hour
Suppose that Kristen and Anna can sell all their brownies for PKR10 each and all their pasta bowls for PKR 50 each. If each of them worked 20 hours per week, how should they split their time between brownies and pasta? What is their maximum joint revenue?
During the late 1970s, the most popular form of music in the United States was disco. Sparked by the film Saturday Night Fever, the disco craze swept the country. It wasn’t just the music, it was also the dancing. And no disco dance club was complete without a disco ball: a mirrored ball suspended from the ceiling. The disco ball would be rotating, with spotlights shined upon it, so that lights would appear to be flashing all across the dance floor. During the heyday of disco, a company called Omega Products International (based in Louisville, Kentucky) made 90% of all the disco balls sold in the U.S.
Suppose that for some reason disco music and disco dancing become popular again. Thus the demand for disco balls increases. What will happen to the price of disco balls, the supply of disco balls, and Omega’s profits in the short run? Explain your answer.
Under what conditions will the increased demand for disco balls enable Omega Products International to make above-normal profits…
During the late 1970s, the most popular form of music in the United States was disco. Sparked by the film Saturday Night Fever, the disco craze swept the country. It wasn’t just the music, it was also the dancing. And no disco dance club was complete without a disco ball: a mirrored ball suspended from the ceiling. The disco ball would be rotating, with spotlights shined upon it, so that lights would appear to be flashing all across the dance floor. During the heyday of disco, a company called Omega Products International (based in Louisville, Kentucky) made 90% of all the disco balls sold in the U.S. This question has four parts. Please label the parts of your answer clearly as a, b, c, and d.
Does the fact that Omega International Products sold 90% of all disco balls in the US indicate that Omega International Products had monopoly power? If your answer is “yes,” then explain why this indicates monopoly power. If your answer is “no,” then explain why this doesn’t necessarily…
Chapter 3 Solutions
Economics Plus MyLab Economics with Pearson eText (2-semester Access) -- Access Card Package (6th Edition) (The Pearson Series in Economics)
Ch. 3 - Prob. 1TCCh. 3 - Prob. 2TCCh. 3 - Prob. 3.1.1RQCh. 3 - Prob. 3.1.2RQCh. 3 - Prob. 3.1.3RQCh. 3 - Prob. 3.1.4RQCh. 3 - Prob. 3.1.5RQCh. 3 - Prob. 3.1.6PACh. 3 - Prob. 3.1.7PACh. 3 - Prob. 3.1.8PA
Ch. 3 - Prob. 3.1.9PACh. 3 - Prob. 3.1.10PACh. 3 - Prob. 3.1.11PACh. 3 - Prob. 3.1.12PACh. 3 - Prob. 3.1.13PACh. 3 - Prob. 3.1.14PACh. 3 - Prob. 3.1.15PACh. 3 - Prob. 3.1.16PACh. 3 - Prob. 3.1.17PACh. 3 - Prob. 3.2.1RQCh. 3 - Prob. 3.2.2RQCh. 3 - Prob. 3.2.3RQCh. 3 - Prob. 3.2.4PACh. 3 - Prob. 3.2.5PACh. 3 - Prob. 3.2.6PACh. 3 - Prob. 3.2.7PACh. 3 - Prob. 3.2.8PACh. 3 - Prob. 3.2.9PACh. 3 - Prob. 3.3.1RQCh. 3 - Prob. 3.3.2RQCh. 3 - Prob. 3.3.3RQCh. 3 - Prob. 3.3.4PACh. 3 - Prob. 3.3.5PACh. 3 - Prob. 3.3.6PACh. 3 - Prob. 3.3.7PACh. 3 - Prob. 3.3.8PACh. 3 - Prob. 3.3.9PACh. 3 - Prob. 3.4.1RQCh. 3 - Prob. 3.4.2RQCh. 3 - Prob. 3.4.3PACh. 3 - Prob. 3.4.4PACh. 3 - Prob. 3.4.5PACh. 3 - Prob. 3.4.6PACh. 3 - Prob. 3.4.7PACh. 3 - Prob. 3.4.8PACh. 3 - Prob. 3.4.9PACh. 3 - Prob. 3.4.10PACh. 3 - Prob. 3.4.11PACh. 3 - Prob. 3.4.12PACh. 3 - Prob. 3.4.13PACh. 3 - Prob. 3.4.14PACh. 3 - Prob. 3.4.15PACh. 3 - Prob. 3.4.16PACh. 3 - Prob. 3.4.17PACh. 3 - Prob. 3.4.18PA
Knowledge Booster
Similar questions
- The first sushi restaurant opens in a town. (Sushi is a type of food popularized in Japan. It consists of cooked rice combined with raw fish or other seafood.) People in this town have always liked large portions of grilled meat such as steak, so initially they are reluctant to try a restaurant that serves tiny portions of raw fish. Soon, however, an influential health report warns of the dangers of eating grilled meat and suggests that people should eat more fish, especially raw fish. Now think about the market for steak in this town. Explain the effect of this health report on the market for steak in this town in the short run. Specifically, explain what happens to the price of steak, the number of steak restaurants, and the profits of steak restaurants. Explain the effect of this health report on the market for steak in this town in the long run. Specifically, explain what happens to the price of steak, the number of steak restaurants, and the profits of steak restaurants.arrow_forwardDuring the late 1970s, the most popular form of music in the United States was disco. Sparked by the film Saturday Night Fever, the disco craze swept the country. It wasn’t just the music, it was also the dancing. And no disco dance club was complete without a disco ball: a mirrored ball suspended from the ceiling. The disco ball would be rotating, with spotlights shined upon it, so that lights would appear to be flashing all across the dance floor. During the heyday of disco, a company called Omega Products International (based in Louisville, Kentucky) made 90% of all the disco balls sold in the U.S. Of course, for better or worse, the disco craze has long since dwindled into almost nothing. And now Omega Products International is the only producer of disco balls staying alive (ha, ha, ha, ha – that’s a Saturday Night Fever reference, in case you didn’t know). Is a monopoly in disco balls a Good Thing or a Bad Thing for society as a whole? Explain why. For purposes of this question,…arrow_forwardThe first sushi restaurant opens in a town. (Sushi is a type of food popularized in Japan. It consists of cooked rice combined with raw fish or other seafood.) People in this town have always liked large portions of grilled meat such as steak, so initially they are reluctant to try a restaurant that serves tiny portions of raw fish. Soon, however, an influential health report warns of the dangers of eating grilled meat and suggests that people should eat more fish, especially raw fish. Explain the effect of this health report on the market for sushi in this town in the short run. Specifically, explain what happens to the price of sushi, the number of sushi restaurants, and the profits of sushi restaurants. Explain the effect of this health report on the sushi market in this town in the long run. Specifically, explain what happens to the price of sushi, the number of sushi restaurants, and the profits of sushi restaurants.arrow_forward
- Read summary about the hula hoop scence: The Hudsucker Corporation has decided to sell the hula hoop for $1.79. We see the toy store owner leaning next to the front door waiting for customers to enter but customers are non-existent. Next, the movie cuts to the president of the company, played by Tim Robbins, and we see him sitting behind a big desk waiting to hear how the launch of the hula hoop is going. It does not go well. The price starts to drop, first to $1.59, then $1.49 and so on down until the hula hoop is "free with any purchase." Even this is not enough to attract consumers. So the toy store owner throws the hula hoops out into the alley behind the store. At his point, it is a fluke that changes the direction of the entire movie. When the hula hoops are tossed into the alley one of them rolls across the street and around the block before landing at the foot of a boy who is skipping school. He picks up the hula hoop and tries it out. He is a natural. About this time school…arrow_forwardRead summary about the hula hoop scence:The Hudsucker Corporation has decided to sell the hula hoop for $1.79. We see the toy store owner leaning next to the front door waiting for customers to enter but customers are non-existent. Next, the movie cuts to the president of the company, played by Tim Robbins, and we see him sitting behind a big desk waiting to hear how the launch of the hula hoop is going. It does not go well. The price starts to drop, first to $1.59, then $1.49 and so on down until the hula hoop is "free with any purchase." Even this is not enough to attract consumers. So the toy store owner throws the hula hoops out into the alley behind the store. At his point, it is a fluke that changes the direction of the entire movie. When the hula hoops are tossed into the alley one of them rolls across the street and around the block before landing at the foot of a boy who is skipping school. He picks up the hula hoop and tries it out. He is a natural. About this time school…arrow_forwardWhen goods are called homogenous. What does this actually means?arrow_forward
- Recent research by economists David Cutler, Edward Glaeser, and Jesse Shapiro on Americans' increasing obesity points to improved technology in the preparation of tasty and more caloric foods as a possible explanation of weight gain. Before World War II, people rarely prepared French fries at home because of the significant amount of peeling, cutting, and cooking required. Today French fries are prepared in factories using low-cost labor, shipped frozen, and then simply reheated in homes. Paul consumes two goods: potatoes and leisure, N. The number of potatoes Paul consumes does not vary, but their tastiness, T, does. For each extra unit of tastiness, he must spend p hours in the kitchen. Thus, Paul's time constraint is N+pT = 24, and Paul's utility function is U = Paul's marginal rate of substitution (MRS), with T measured on the horizontal axis and N measured on the vertical axis, is N MRS = 2. (Properly format your expression using the tools in the palette. Hover over tools to see…arrow_forwardAt the end of performances of his Broadway play, "Cyrano de Bergerac," Kevin Kline, who starred as Cyrano, the cavalier poet with a huge nose, auctioned his prosthetic proboscis, which he and his co-star, Jennifer Garner, autographed to benefit Broadway Cares in its fight against AIDS. An English auction was used. One night, a television producer grabbed the nose for $1,400, while the next night it fetched $1,600. On other nights it sold for $3,000 and $900. Why did the value fluctuate substantially from night to night? The value of the nose fluctuated from night to night because the bidders have private values for the auction item. Which bidder's bid determined the sales price? The bidder whose value determined the sales price was the bidder. second-lowest second-highest lowest highestarrow_forwardAt the end of performances of his Broadway play, "Cyrano de Bergerac," Kevin Kline, who starred as Cyrano, the cavalier poet with a huge nose, auctioned his prosthetic proboscis, which he and his co-star, Jennifer Garner, autographed to benefit Broadway Cares in its fight against AIDS. An English auction was used. One night, a television producer grabbed the nose for $1,400, while the next night it fetched $1,600. On other nights it sold for $3,000 and $900. Source: (Mitchell, Dan, "This Time, Santa Has Been Too Naughty," New York Times, December 9, 2007) Why did the value fluctuate substantially from night to night? The value of the nose fluctuated from night to night because the bidders have Which bidder's bid determined the sales price? The bidder whose value determined the sales price was the How was the auction price affected by the audience's knowledge that the proceeds would go to charity? Why? Since proceeds went to the AIDS charity, private values OA. differed by each bidder's…arrow_forward
- In the fictional town of Wilsonville, there's a bustling local economy with numerous firms and households. The local bakery, owned by Mrs. Smith, is a favorite among the townspeople for its delicious pies. Mrs. Smith buys her fresh apples from the local orchard, which is owned by Mr. Johnson. Meanwhile, Mr. Johnson and his family are regular customers at Mrs. Smith's bakery, indulging in her pies every weekend. Use the diagram below to answer the question. Factor market G Households Good market What do arrows a and b represents? a) a-income; b - goods and services b) a-spending; b-factors of production a-spending; b-goods and services a-income; b - factors of production c) d)arrow_forwardEconomics In the late 1990s, Starbucks hired the Environmental Defense Fund to help it determine how best to reduce the amount of paper waste it was generating because of customers demanding two cups to hold the hot coffee. The Environmental Defense Fund determined that the best way to eliminate the need for the second cup was to provide customers with a paper sleeve that went around the outside of a cup. This innovation reduced the amount of paper cups being used by Starbucks by 50 percent, saved the company tens of thousands of dollars by reducing the amount of cups they needed, and improving their environmental image. This is an example of: a. monitoring b. eco-consumerism C. consumer boycott d. corporate partnership / project collaboration e. private stewardship regimearrow_forward38. On January 7, Scott sends a letter to Aaron offering to sell his Xbox video game system for $50. On January 10, Aaron mails a letter of acceptance. On January 11, prior to receiving Aaron's letter, Scott faxes a letter to Aaron revoking his offer to sell his Xbox. As to the letters sent by Scott and Aaron: Aaron's letter is merely a counter-offer and Scott has the power to revoke. b. a. Scott's revocation is valid, no contract exists. Aaron's acceptance is effective upon dispatch and a valid contract exists. no contract because this contract must be in writing. C. "Parrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning