Essentials of Economics (MindTap Course List)
7th Edition
ISBN: 9781285165950
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 14, Problem 9PA
Subpart (a):
To determine
Profit maximization.
Subpart (b):
To determine
The monopolist’s demand, marginal revenue and marginal cost curves.
Subpart (c):
To determine
Reason for decreasing price.
Subpart (d):
To determine
Reason for increase the export.
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Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost:
Demand: P = 10 - Q
Marginal Revenue:MR = 10 - 2 Q
Total Cost TC= 3 + Q+0.5 Q2
Marginal Cost: MC= 1+ Q,
where Q is quantity and Pis the price measured in Wiknamian dollars.
a. How many soccer balls does the monopolist produce? At what price are they sold? What is the monopolist's profit?
b. One day, the King of Wiknam decrees that henceforth there will be free trade-either imports or exports of soccer balls at the world price of $6.The firm is now a price taker in a competitive market What happens to the domestic production of soccer balls? To domestic consumption? Does Wiknam export or import soccer balls?
c. In our analysis of international trade in Chapter a country becomes an exporter when the price without trade is below the…
Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The
following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost:
Demand:
P=15-Q
Marginal Revenue: MR = 15-20
Total Cost:
Marginal Cost:
TC=3+Q+0.50²
MC = 3+Q
where Q is quantity and P is the price measured in Wiknamian dollars.
The monopolist produces
soccer balls and sells them at a price of s
each. The monopolist's profit is s
The domestic production of soccer balls will to
Wiknam will
soccer balls in this case.
One day, the King of Wiknam decrees that henceforth there will be free trade-either imports or exports-of soccer balls at the world price of $10. The
firm is now a price taker in a competitive market.
soccer balls, and domestic consumption will to
in this case.
In the analysis of international trade in Chapter 9, a country becomes an exporter when the price without trade is below the world…
Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost:
Demand:
P=15−QP=15−Q
Marginal Revenue:
MR=15−2QMR=15−2Q
Total Cost:
TC=3+Q+0.5Q2TC=3+Q+0.5Q2
Marginal Cost:
MC=3+QMC=3+Q
where QQ is quantity and PP is the price measured in Wiknamian dollars.
The monopolist produces ( ? ) soccer balls and sells them at a price of ($)
each. The monopolist's profit is ($) in this case.
One day, the King of Wiknam decrees that henceforth there will be free trade—either imports or exports—of soccer balls at the world price of $10. The firm is now a price taker in a competitive market.
The domestic production of soccer balls will ( rise or fall ) ? to ( ? ) soccer balls, and domestic consumption will ( rise or fall ) to ( ? ) soccer balls. Therefore, Wiknam will (…
Chapter 14 Solutions
Essentials of Economics (MindTap Course List)
Ch. 14.1 - Prob. 1QQCh. 14.2 - Prob. 2QQCh. 14.3 - Prob. 3QQCh. 14.4 - Prob. 4QQCh. 14.5 - Prob. 5QQCh. 14 - Prob. 1QRCh. 14 - Prob. 2QRCh. 14 - Prob. 3QRCh. 14 - Prob. 4QRCh. 14 - Prob. 5QR
Ch. 14 - Prob. 6QRCh. 14 - Prob. 7QRCh. 14 - Prob. 8QRCh. 14 - Prob. 1QCMCCh. 14 - Prob. 2QCMCCh. 14 - Prob. 3QCMCCh. 14 - Prob. 4QCMCCh. 14 - Prob. 5QCMCCh. 14 - Prob. 6QCMCCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - Prob. 5PACh. 14 - Prob. 6PACh. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Prob. 11PA
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