Contemporary Engineering Economics (6th Edition)
6th Edition
ISBN: 9780134105598
Author: Chan S. Park
Publisher: PEARSON
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Question
Chapter 11, Problem 2ST
a.
To determine
The project cash flow in the absence of inflation.
b.
To determine
The
c.
To determine
The project cash flow with change in price levels.
d.
To determine
The internal
e.
To determine
The economic loss in present worth caused by inflation.
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Students have asked these similar questions
Consider the figure on the right. A single-price monopolist
will produce
○ A. 135 units and charge a price equal to $32.
B. 135 units and generate a deadweight loss.
OC. 189 units and charge a price equal to the
perfectly competitive price.
○ D. 189 units and charge a price equal to $45.
()
Dollars per Unit
$45
$32
MR
D
135 189
Output
MC
NG
Suppose a drug company cannot prevent resale between rich and poor countries and increases output from 3
million (serving only the rich country with a price of $80 per treatment) to 9 million (serving both the rich and the poor
countries with a price of $30 per treatment). Marginal cost is constant and equal to $10 per treatment in
both countries.
The marginal revenue per treatment of increasing output from 3 million to 9 million is equal to
○ A. $20 per treatment, which is greater than the marginal cost of $10 per treatment and thus implies that profits
will rise.
○ B. $20 per treatment, which is greater than zero and thus implies that profits will rise.
○ C. $30 per treatment, which is greater than the marginal cost of $10 per treatment and thus implies that profits
will rise.
○ D. $5 per treatment, which is less than the marginal cost of $10 per treatment and thus implies that profits will
fall.
○ E. $30 per treatment, which is less than the marginal revenue of $80 per treatment…
Consider the figure. A single-price monopolist will have a
total revenue of
Single-Price Monopolist
OA. 84×$13.
O B. 92x $13.
OC. 84×$33.
OD. 92 x $33.
C
Price ($)
$33
$13
MC
MR
D
84
92
Output
The figure is not drawn to scale.
Chapter 11 Solutions
Contemporary Engineering Economics (6th Edition)
Ch. 11 - Prob. 1PCh. 11 - Prob. 2PCh. 11 - Prob. 3PCh. 11 - Prob. 4PCh. 11 - Prob. 5PCh. 11 - An annuity provides for 10 consecutive end-of-year...Ch. 11 - Prob. 7PCh. 11 - Prob. 8PCh. 11 - Prob. 9PCh. 11 - Prob. 10P
Ch. 11 - Prob. 11PCh. 11 - Prob. 12PCh. 11 - Prob. 13PCh. 11 - Prob. 14PCh. 11 - Prob. 15PCh. 11 - Prob. 16PCh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 30PCh. 11 - Prob. 31PCh. 11 - Prob. 1STCh. 11 - Prob. 2STCh. 11 - Prob. 3ST
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