Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 13.A, Problem 1IAPA
To determine
To explain:
The relative price of a latte in terms of e-books and the
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Ramona is an asparagus farmer and the world asparagus market is perfectly competitive.
The market price is $23 a bundle. Ramona sells 800 bundles a week and her marginal cost is $25 a bundle.
The market price falls to $20 a bundle, and Ramona cuts her output to 500 bundles a week.
Ramona's average variable cost and marginal cost fall to S20 a bundle.
Ramona is
A. not maximizing profit because she has cut her asparagus production
O B. not maximizing profit because she is incurring an economic loss
C. maximizing profit and she is incurring an economic loss
O D. maximizing profit and she is making an economic profit
E. not maximizing profit because marginal revenue does not equal marginal cost
Douglas allocates his budget of $24 per week to 3 goods, cereal, books and clothing. Use the table below to answer the following question
Quantity
Total Utility of Cereal
Total Utility of Books
Total Utility of Clothing
1
50
75
25
2
90
135
45
3
120
175
60
4
140
205
70
5
155
225
78
1. If the price of cereal is $2, the price of books is $3 and the price of clothing is $1, at what point does Douglas maximize his utility? Explain.
Question 2
Chapter 13 Solutions
Foundations of Economics (8th Edition)
Ch. 13.A - Prob. 1SPPACh. 13.A - Prob. 2SPPACh. 13.A - Prob. 3SPPACh. 13.A - Prob. 4SPPACh. 13.A - Prob. 5SPPACh. 13.A - Prob. 1IAPACh. 13.A - Prob. 2IAPACh. 13.A - Prob. 3IAPACh. 13.A - Prob. 4IAPACh. 13 - Prob. 1SPPA
Ch. 13 - Prob. 2SPPACh. 13 - Prob. 3SPPACh. 13 - Prob. 4SPPACh. 13 - Prob. 5SPPACh. 13 - Prob. 6SPPACh. 13 - Prob. 7SPPACh. 13 - Prob. 8SPPACh. 13 - Prob. 9SPPACh. 13 - Prob. 10SPPACh. 13 - Prob. 1IAPACh. 13 - Prob. 2IAPACh. 13 - Prob. 3IAPACh. 13 - Prob. 4IAPACh. 13 - Prob. 5IAPACh. 13 - Prob. 6IAPACh. 13 - Prob. 7IAPACh. 13 - Prob. 8IAPACh. 13 - Prob. 9IAPACh. 13 - Prob. 10IAPACh. 13 - Prob. 1MCQCh. 13 - Prob. 2MCQCh. 13 - Prob. 3MCQCh. 13 - Prob. 4MCQCh. 13 - Prob. 5MCQCh. 13 - Prob. 6MCQCh. 13 - Prob. 7MCQ
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