Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Question
Chapter 14, Problem 2CQ
(a)
To determine
Identify the change in interest rate earned on savings deposit influence the quantity of M1 money to hold.
(b)
To determine
Identify the change in the expected rate of inflation influence the quantity of M1 money to hold.
(c)
To determine
Identify the change in the income influence the quantity of M1 money to hold.
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The Firm's Output Decision (Study Plan 12.2)
Use the following table to work Problems 4 to 6.
Pat's Pizza Kitchen is a price taker. Its costs are
Output
(pizzas per hour)
Total cost
(dollars per hour)
0
10
1
21
2
30
3
41
4
54
5
69
4. Calculate Pat's profit-maximizing output and
economic profit if the market price is
(i) $14 a pizza.
(ii) $12 a pizza.
(iii) $10 a pizza.
5. What is Pat's shutdown point and what is Pat's
economic profit if it shuts down temporarily?
6. Derive Pat's supply curve.
Chapter 14 Solutions
Economics: Private and Public Choice
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