1. Using the theory developed in chapter 13, explain the following:(a) why a worker in Ethiopia is likely to earn much less than a worker in Japan;(b) why the army expects recruitment to rise during economic recessions;(c) why basketball stars earn relatively large incomes;2. Does the monopolist shown in the graph below earn profits? Why or why not?Explain.Price,Cost,MarginalRevenueATC₁P₁050MCMRDATCQuantity3. Give an example of each of the following: (a) a good rivalrous in consumptionand excludable, (b) a good nonrivalrous in consumption and excludable, and (c) a goodnonrivalrous in consumption and nonexcludable.

The first part of the question is asking why a worker in Ethiopia is likely to earn much less than a…

Answered: 1. Using the theory developed in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Using the cost curves for the monopolist (right), answer the questions 3a - 3d below: a. Indicate where the monopolist maximizes profits, output is equal to b. The monopoly price that maximizes profits is c. What is the maximum profit the firm can earn from its product? d. When the monopolist is maximizing total profit, the average total cost of producing that output level is? Price (dollars) 10 6 4 0 MR 6 Quantity T 11 ||| 8 9 10 MC ATC D
11. Problems and Applications Q3 Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. His record company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 5,000 increase in the quantity sold. Price Total Revenue Marginal Revenue (Dollars) Number of CDs (Dollars) (Dollars) 30 10,000 28 15,000 26 20,000 24 25,000 22 30,000 20 35,000 Profit is maximized at a quantity of CDs and a price of This results in a profit of If you were Johnny's agent, you would advise Johnny to demand a recording fee of from the record company.
Questions: 1A) If MU Café, which is a monopolistically competitive firm, is making a positive profit in the short run, why might this profit become zero in the long run? 1B) If MU Café wants to keep the profit positive in the long run, what can it do? Provide ONE suggestion and briefly explain. 1C) What externality problem do you expect in the market for plastic bags? How does the government correct the inefficiency of the market? Explain in detail and diagram.
S 2 Fiona has a monopoly on motorboat rentals on Nantucket Island during the summer. She can rent five boats per week at $21,000 each. If she wants to rent six, she can only charge $20,000 each. a. The price effect of renting the sixth motorboat is: $_____ b. The quantity effect of renting the sixth motorboat is: $_____ c. The marginal revenue of renting the sixth motorboat is: $_____
DN1(b, c) Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to offer a discounted price for adults who are currently enrolled students. The marginal cost per train ticket from Baltimore to New York is 100. The demand for regular tickets is P=1000-5Q and the demand for student tickets is P-500-Q. b. Find the monopoly price and quantity for regular adult tickets? c. Find the monopoly price and quantity for discounted student tickets.
What would happen to the following if there is anincrease in marginal cost? (a) The price that the monopolist can charge. (b) The quantity that the monopolist will produce. (c) The quantity that the perfectly competitive industry will produce. (d) The maximum profit of the perfectly competitive industry. .
Solve all this question......you will not solve all questions then I will give you down?? upvote....
Unions try to create what market structure? a. Monopolistic competition in the market for an output. b. Perfect competition in the market for an output. c. An oligopoly in the sale of labor. d. A monopoly in the market for labor
1. What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? Is there a way for oligopolists to attempt to maximize profits? What are the risks of such attempts (and utimately, generally cause such attempts to fail)? 2. Using the production schedule table in question 1, Marginal Productivity reaches a maximum with the hiring of which worker? A. 3 B. 4 C. 5 D. 6 E. 7
1. Company A is the only one that can sell a certain number of products in New York City. Firm A faces competition elsewhere in the United States. If Company A is able to price discrimination, a. Will prices in New York City be different from elsewhere? if yes or no, explain your reasons clearly. b. In this case, do you think there will be a high correlation of price movements between New York City and elsewhere? c. What do you think about the existing market structure in New York? please help with your explanation by drawing the required relevance curve.
10 Monopoly profits do NOT serve any "socially useful" purpose because: Select one: E of a. Each of these is a reason why monopoly profits are not socially useful. b. the monopolist's profits are not "competed away". C. the monopolist's profits do not incentivize new investment and a reallocation of resources into the market. d. entry barriers prevent new firms from entering the market to compete with the monopolist.
(Short-Run Profit Maximization) Answer the following questions on the basis of the monopolist's situation illustrated in the following graph. a. At what output rate and price does the monopolist operate? b. In equilibrium, approximately what is the firm's total cost and total revenue? c. What is the firm's economic profit or loss in equilibrium?

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