Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 15, Problem 9SPPA
To determine
To explain:
Whether the maple syrup market and the profit of an individual producer will change in the long run, if the industry is making a positive economic profit.
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1. Coldwater Bicycle Company operates its factories at capacity and holds a dominant market position in its home country. When it receives a premium priced order from a new customer in another country, it must decide whether to fill that order or continue to supply the full demand in its home market. When it decided not to completely fill the new order, it incurred
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b. Average costs
c. Opportunity costs
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2. What might happen if a car dealership is awarded a bonus by the manufacturer for selling a certain number of its cars monthly, but the dealership is just short of that quota near the end of the month?
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a. Potential buyers will lose buying power at the dealer
b. It may sell the remaining cars at huge discounts to hit the quota
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d. It would ruin the relationship between dealer and manufacturer…
The graph shows the situation facing Mike's Bikes Inc., a producer of mountain
bikes.
The demand and costs of other mountain bike producers are similar to those of
Mike's Bikes.
Draw a point to show the quantity of mountain bikes that Mike's produces and the
price of a bike.
Draw a shape to show the firm's economic profit or loss. Label it
400
350-
300-
250
200-
150-
100
50-
0+
Price and cost (dollars per bike)
0
MC
ATC
MR
D
50 100 150 200 250 300
Quantity (mountain bikes per week)
>> Draw only the objects specified in the question.
Q
E
1. Your company operates in a perfectly competitive market. You have been told that
advertising can help you increase your sales in the short run. Would you create an
aggressive advertising campaign for your product?
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
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