Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 16, Problem 4IAPA
To determine

To find:

The person who will get benefited and weather the quantity is efficient or not.

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Mark's Day Spa is a single-price monopoly. Price Total cost The table shows the demand schedule for Mark's Day Spa (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3). (dollars per treatment) Quantity (treatments per hour) (dollars per hour) 14 1 Suppose Mark's rent goes up by $7 an hour. 13 1 8 12 17 What is Mark's new profit-maximizing output, price, and economic profit? 11 3 28 When Mark's produces its new profit-maximizing output, the number of treatments 10 4 41 it produces is an hour. 5 56 Mark's profit-maximizing price is S| a treatment. Mark's economic profit is S.
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