Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 11, Problem 9IAPA
To determine
To explain:
The way the Pacific islands' action influences the efficiency of use of Tuna resources.
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Table 17-1Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce safe drinking water. Each week Rochelle and Alec work together to decide how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Rochelle and Alec can pump as much water as they want without cost so that the marginal cost of water equals zero. The weekly town demand schedule and total revenue schedule for water is shown in the table below:
Quantity(in gallons)
Price
Total Revenue(and Total Profit)
0
$60
$0
100
55
5,500
200
50
10,000
300
45
13,500
400
40
16,000
500
35
17,500
600
30
18,000
700
25
17,500
800
20
16,000
900
15
13,500
1,000
10
10,000
1,100
5
5,500
1,200
0
0
Refer to Table 17-1. If this market for water were perfectly competitive instead of…
Pic 1 :
You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customers:
Price
Adults
Children
(Dollars)
(Tickets)
(Tickets)
10
0
0
9
100
0
8
200
0
7
300
0
6
300
0
5
300
100
4
300
200
3
300
200
2
300
200
1
300
200
0
300
200
To maximize profit, you would charge $ ?
for an adult's ticket and $ ?
for a child's ticket. Total profit in this case would be $ ?
The city council passes a law prohibiting you from charging different prices to different customers.
Now you set a price of $ ?
for all tickets, resulting in $ ?
in profit.
Pic 2 :
Indicate whether each of the following groups of people is better off, worse off, or the same because of the law prohibiting price discrimination.…
Table 2
Imagine a small town in which only two residents, Lisa and Mark, own wells th Time left 1:57
drinking water. Each week Lisa and Mark work together to decide how many gallons of
water to pump. They bring the water to town and sell it at whatever price the market will
bear. To keep things simple, suppose that Lisa and Mark can pump as much water as they
want without cost so that the marginal cost of water equals zero. The weekly town demand
schedule and total revenue schedule for water is shown in the table below:
Quantity
(in gallons)
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
Price
Select one:
O a. 0
O b. 1,200
O c. 600
O d.
900
$120
110
100
90
80
70
60
50
40
30
20
10
0
Total Revenue
(and Total Profit)
$0
11,000
20,000
27,000
32,000
35,000
36,000
35,000
32,000
27,000
20,000
11,000
0
Refer to Table 2. If the market for water were perfectly competitive instead of monopolistic,
how many gallo of water would be produced and sold?
Chapter 11 Solutions
Foundations of Economics (8th Edition)
Ch. 11 - Prob. 1SPPACh. 11 - Prob. 2SPPACh. 11 - Prob. 3SPPACh. 11 - Prob. 4SPPACh. 11 - Prob. 5SPPACh. 11 - Prob. 6SPPACh. 11 - Prob. 7SPPACh. 11 - Prob. 8SPPACh. 11 - Prob. 9SPPACh. 11 - Prob. 10SPPA
Ch. 11 - Prob. 1IAPACh. 11 - Prob. 2IAPACh. 11 - Prob. 3IAPACh. 11 - Prob. 4IAPACh. 11 - Prob. 5IAPACh. 11 - Prob. 6IAPACh. 11 - Prob. 7IAPACh. 11 - Prob. 8IAPACh. 11 - Prob. 9IAPACh. 11 - Prob. 1MCQCh. 11 - Prob. 2MCQCh. 11 - Prob. 3MCQCh. 11 - Prob. 4MCQCh. 11 - A renewable common resource is used sustainably if...Ch. 11 - Prob. 6MCQCh. 11 - Prob. 7MCQCh. 11 - When ITQs are assigned, the market price of an ITQ...
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