Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 16, Problem 3SPPA
To determine
To explain:
The comparison of equilibrium price and quantity with ES's price and quantity.
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Students have asked these similar questions
Table 17-5
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for
each gallon sold, with no fixed cost.
Quantity
(Gallons)
Price
(Dollars per gallon)
0
50
100
150
200
250
300
350
400
(Dollars)
0
350
600
750
800
750
600
350
0
Refer to Table 17-5. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following
outcomes is most likely?
a. Each seller will sell 30 gallons and charge a price of $4.
b. Each seller will sell 40 gallons and charge a price of $4.
c. Each seller will sell 30 gallons and charge a price of $5.
d. Each seller will sell 50 gallons and charge a price of $3.
8
7
6
5
4
Quesquir
Total Revenue
3
2
1
0
Elixir Spring's mineral water is unique and highly prized.
The firm's total fixed cost is $4,000 a day and its marginal cost is zero.
The table shows the market demand schedule for the firm's water.
Compare Elixir's profit-maximizing price with the marginal cost of producing the profit-maximizing output.
At the profit-maximizing price, is the demand for Elixir's water inelastic or elastic?
Elixir's profit-maximizing price
Elixir's marginal cost.
A. is greater than
B. is less than
C. equals
At the profit-maximizing price, the demand for Elixir's water is
A. inelastic
B. elastic
C. perfectly inelastic
D. unit elastic
E. perfectly elastic
Question 18
Alex Potter owns the only well in a town that produces clean drinking water. He faces the following demand P=200-2Q, and marginal cost MC=50+2Q, marginal revenue MR= 200-4Q curves. In order to maximize profits, Alex should charge a price of
$150 at the profit maximizing quantity with a marginal revenue equal to $150.
$100 at the profit maximizing quantity with a marginal revenue equal to $150.
$100 at the profit maximizing quantity with a marginal revenue equal to $100.
$150 at the profit maximizing quantity with a marginal revenue equal to $100.
O O
Chapter 16 Solutions
Foundations of Economics (8th Edition)
Ch. 16 - Prob. 1SPPACh. 16 - Prob. 2SPPACh. 16 - Prob. 3SPPACh. 16 - Prob. 4SPPACh. 16 - Prob. 5SPPACh. 16 - Prob. 6SPPACh. 16 - Prob. 7SPPACh. 16 - Prob. 8SPPACh. 16 - Prob. 9SPPACh. 16 - Prob. 10SPPA
Ch. 16 - Prob. 11SPPACh. 16 - Prob. 1IAPACh. 16 - Prob. 2IAPACh. 16 - Prob. 3IAPACh. 16 - Prob. 4IAPACh. 16 - Prob. 5IAPACh. 16 - Prob. 6IAPACh. 16 - Prob. 7IAPACh. 16 - Prob. 8IAPACh. 16 - Prob. 9IAPACh. 16 - Prob. 10IAPACh. 16 - Prob. 1MCQCh. 16 - Prob. 2MCQCh. 16 - Prob. 3MCQCh. 16 - Prob. 4MCQCh. 16 - Prob. 5MCQCh. 16 - Prob. 6MCQCh. 16 - Prob. 7MCQ
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