MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
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Question
Chapter 15, Problem 1IP
(a)
To determine
Illustration of firm’s MR and MC and the possibility of equilibria.
(b)
To determine
The two equilibria at which firms will arrive at.
(c)
To determine
The effect of decreasing MC in product price.
(d)
To determine
The effect of increasing MC in product price.
(e)
To determine
Relevance of the kinked demand model.
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Suppose that Tommy Hilfiger's marginal cost of a jacket is a constant $100 and at one of the firm's shops, total fixed
cost is $2,000 a day.
The profit-maximizing number of jackets sold in this shop is 20 a day.
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OC. rises because advertising increases demand
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In the short run, Tommy's economic profit
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A. is unknown, zero
OB. decreases with advertising, zero
OC. increases with advertising, positive
OD. is unknown, positive
In the long-run, Tommy's economic profit is
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2. A ski resort faces daily demand given by p = a - Q, where a varies from day to day. Over a three-
day period, a takes on the values 80.100, and 120. The marginal cost is zero. The fixed cost for the
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maximize profit. If it uses non-dynamic pricing, it sets the same price for all three days, assuming that
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18
0
MR
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50 70 75
Units of output
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a. $1,150
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c. $1,250
d. $100
Chapter 15 Solutions
MICROECONOMICS
Ch. 15.1 - Prob. 1QCh. 15.1 - Prob. 2QCh. 15.1 - Prob. 3QCh. 15.1 - Prob. 4QCh. 15.1 - Prob. 5QCh. 15.1 - Prob. 6QCh. 15.1 - Prob. 7QCh. 15.1 - Prob. 8QCh. 15.1 - Prob. 9QCh. 15.1 - Prob. 10Q
Ch. 15 - Prob. 1QECh. 15 - Prob. 2QECh. 15 - Prob. 3QECh. 15 - Prob. 4QECh. 15 - Prob. 5QECh. 15 - Prob. 6QECh. 15 - Prob. 7QECh. 15 - Prob. 8QECh. 15 - Prob. 9QECh. 15 - Prob. 10QECh. 15 - Prob. 11QECh. 15 - Prob. 12QECh. 15 - Prob. 13QECh. 15 - Prob. 14QECh. 15 - Prob. 15QECh. 15 - Prob. 16QECh. 15 - Prob. 17QECh. 15 - Prob. 18QECh. 15 - Prob. 1QAPCh. 15 - Prob. 2QAPCh. 15 - Prob. 3QAPCh. 15 - Prob. 4QAPCh. 15 - Prob. 5QAPCh. 15 - Prob. 1IPCh. 15 - Prob. 2IPCh. 15 - Prob. 3IPCh. 15 - Prob. 4IPCh. 15 - Prob. 5IPCh. 15 - Prob. 6IPCh. 15 - Prob. 7IP
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