EBK PRINCIPLES OF ECONOMICS
8th Edition
ISBN: 8220103600453
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 15, Problem 7PA
Subpart (a):
To determine
The consumer surplus and effect of tax.
Subpart (b):
To determine
Calculate the consumer surplus.
Subpart (c):
To determine
Calculate profit.
Subpart (d):
To determine
The consumer surplus.
Subpart (e):
To determine
Favors of admission fee.
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Students have asked these similar questions
Imagine you are the owner of the Omaha
Surfboard Company. You have a branch in
Omaha and in Long Beach CA. After some
market research you find the following
surfboard demand for each market, Omaha
Demand: Qo = 1000 – 10P Long Beach
Demand: QL = 1000 – 5P Combined/Total
Demand: Q = 2000 – 15P Your marginal cost
is constant at $40.
a. Find your price and quantity if you treated
the market as a single entity with a single
price. What is your profit? (Hint: find Marginal
Revenue and set equal to MC)
b. If you treat each market separately, what is
P and Quantity in each market, and final
profit?
Based on market research, a film production company in Ectenian obtains the following information about the demand and production costs of its new DVD:Demand: P = 1,000 – 10QTotal Revenue: TR = 1,000Q – 10Q2Marginal Revenue: MR = 1,000 – 20QMarginal Cost: MC = 100 + 10Qwhere Q indicates the number of copies sold and P is the price in Ectenian dollars.d. Suppose, in addition to the costs above, the director of the film has to be paid. The company is considering four options:i. A flat fee of 2,000 Ectenian dollarsii. 50 percent of the profitsiii. 150 Ectenian dollars per unit soldiv. 50 percent of the revenueFor each option, calculate the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain
Q⁶
Chapter 15 Solutions
EBK PRINCIPLES OF ECONOMICS
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1CQQCh. 15 - Prob. 2CQQCh. 15 - Prob. 3CQQCh. 15 - Prob. 4CQQCh. 15 - Prob. 5CQQ
Ch. 15 - Prob. 6CQQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QRCh. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 7PACh. 15 - Prob. 8PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PACh. 15 - Prob. 12PA
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