Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 9IAPA
To determine
To explain:
The long run effects of pollution crackdown.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Price and cost (dollars)
50
40
.ATC
10
MC
MR
10
Quantity (thousands of households)
20
30
40
50
The above figure represents the market for cable television in Oakland, Florida. Time
Warner Communications (TWC) is the sole provider of cable television to the
residents of this Central Florida community. If TWC is left unregulated, what is the
price of cable television in Oakland?
$20
$30
$10
$40
30
20
If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect a.competition to force producers to pass the lower production costs on to consumers in the long run. b.the firms in the industry to make long-run economic profit. c.the market price of the products of this industry to decrease in the short run but not in the long run. d.the demand for the products of this industry to increase.
“Florida orange growers” advertise as a group, but individual orange growers do not. What does this fact suggest about the market for oranges? Why?
Chapter 15 Solutions
Foundations of Economics (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
Knowledge Booster
Similar questions
- Health Canada's report will cause consumers to demand 1. (less or more) tuna at every price. In the short run, firms will respond by 2. (exiting the industry, producing the same amount of tuna and running at a loss, producing more tuna and earning positive profit, entering the industry, producing the same amount of tuna and earning positive profit, producing less tuna and running at a loss) In the long run, some firms will respond by 3. ( entering the industry, producing less tuna and earning positive profit, producing more tuna and earning positive profit, exiting the industry, producing less tuna and running at a loss, producing more tuna and running at a loss) until 4. (consumer demand returns to its original level, tuna populations grow large enough to support more firms, new technologies are discovered that lower costs, each firm in the industry is once again earning zero profit) Assuming the long-run price and quantity are as you found in the preceding problem, the tuna…arrow_forward1. Price and output in a competitive price-searcher market Consider a price-searching firm, Sean's Fire Engines, which sells fire engines in the fictional country of Pyrotania. Initially, Sean's produced six fire engines but then decided to increase production to seven fire engines. The following graph shows the demand curve the firm faces. To sell the additional engine, Sean's must lower its price from $100,000 to $50,000 per engine. (Hint: Sean's Fire Engines gains revenue from the additional engine it sells, but it also loses revenue from the initial six engines because it sells them all at the lower price.) On the following graph, use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial six engines by selling at $50,000 rather than $100,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $50,000. re engine) 250 225 200 Q Search Revenue Lost Colarrow_forwardThe global crisis of electronic chips shook and shattered many industries while in theforefront of the headlines the COVID-19 pandemic rages through the economies ofthe world. You watched a video on this crisis and participated in a discussionin the class. Pick up an industry of your choice and discuss how this industrygot hit by this chip shortage. How much was the usual demand? Did the demandincrease during the COVID pandemic or it reduced? Did the industry cut production?Did it suffer a revenue downfall? Was there any variation of the impact withrespect to the difference in economic regions e.g. Asia, Europe, North America,The Middle East etc..? Did it find an alternate way to circumvent the crisis? Countryeconomy-wise which one is hardest hit (or the least)? Why? What type ofrecovery do they expect or foresee? How are they making sustainability plansfor such a crisis in the future? Try to answerthese questions in your write up but don’t limit them within the boundary ofthese…arrow_forward
- 15. The inverse demand for Harley Davidson motorcycles is P = 40, 000 – 10Q, where P is given by the price in dollars and Q measures the number of units sold each month. Harley Davidson is currently producing motorcycles at a constant marginal and average cost of $16,000. a. Solve for the profit-maximizing price and quantity of Harley Davidson motorcycles. b. Heavy tariffs on imported steel drive up Harley's marginal and average cost by $2,000. How do these tariffs affect Harley's profit-maximizing price and quantity? How will the tariffs affect Harley's profits?arrow_forwardGive explanation answer and take likearrow_forwardQuantity (in gallons) Total Price Revenue $8 $0 50 7 350 100 600 150 750 200 4 800 250 3 750 300 600 350 1 350 400 Imagine a small town in a remote area where only two residents, Maria and Miguel, own dairies that produce milk. Their respective dairies are equal in size. Each week Maria and Miguel work together to decide how many gallons of milk to produce and what price to charge. To keep things simple, suppose that Maria and Miguel can produce as much milk as they want without cost so that the marginal cost is zero and there are no fixed costs. The weekly town demand schedule and total revenue schedule for milk is shown in the table above. Suppose the town enacts new antitrust laws that prohibit Maria and Miguel from operating as a cartel. Assuming that each producer can only modify quantity in increments of 50, which of the following is consistent with the Nash equilibrium for this scenario? Maria will charge a price of $5 for each gallon. Miguel will sell 100 gallons. Milk will…arrow_forward
- Please answer all questionsarrow_forwardConsider a town in which only two residents, Lorenzo and Neha, own wells that produce water safe for drinking. Lorenzo and Neha can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price (Dollars per gallon) 6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 Quantity Demanded (Gallons of water) 0 45 90 135 180 225 270 315 360 405 450 495 540 Total Revenue (Dollars) 0 $247.50 $450.00 $607.50 $720.00 $787.50 $810.00 $787.50 $720.00 $607.50 $450.00 $247.50 0 Suppose Lorenzo and Neha form a cartel and behave as a monopolist. The profit-maximizing price is $ output is $ per gallon, and the total gallons. As part of their cartel agreement, Lorenzo and Neha agree to split production equally. Therefore, Lorenzo's profit is and Neha's profit is $ Suppose that Lorenzo and Neha have been successfully operating as a cartel. The each charge the monopoly price and sell half of the…arrow_forwardmicro question 4arrow_forward
- Homework (Ch 06) Back to Assignment Attempts Do No Harm / 1 3. Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. O Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units. O The future supply of rental housing units increases. O Black markets develop. O The quality of rental housing units falls.arrow_forwardThere are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of these 38 stores allows ABC to offer large quantities at favorable prices. a. ABC gained market power through a.economies of scale b.government protection c.control of an important input . b. ABC’s market power a.does b.does not guarantee that the firm makes an economic profit.arrow_forwardEconomicsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co