MICROECONOMICS-ACCESS CARD <CUSTOM>
11th Edition
ISBN: 9781266285097
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 4QE
To determine
X-inefficiency and competition.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Your task is to show what the profit of this firm might look like using a key economics diagram.
To make graphing easier, we will consider the price of the Ozempic drug for the middle-income
country Bangladesh, which is $38 (assumed the profit-maximising price).
For this task, you will be required to illustrate and explain to a typical first-year undergrad student
who has no economics background the profit the firm makes at $38 per month, and what has
happened to profit (producer surplus), markup, consumer surplus and the output if the price was
reduced from $38 to $10 per month.
09.
Let's say there is demand in a market. The unit cost of production of the good is fixed and is at level 3. If you had a technology that could reduce this cost to 1, how much would you sell the pantent of the technology you have? (Hint: How much does society spend to get the technology you have?)
Chapter 16 Solutions
MICROECONOMICS-ACCESS CARD <CUSTOM>
Ch. 16.1 - Prob. 1QCh. 16.1 - Prob. 2QCh. 16.1 - Prob. 3QCh. 16.1 - Prob. 4QCh. 16.1 - Prob. 5QCh. 16.1 - Prob. 6QCh. 16.1 - Prob. 7QCh. 16.1 - Prob. 8QCh. 16.1 - Prob. 9QCh. 16.1 - Prob. 10Q
Ch. 16 - Prob. 1QECh. 16 - Prob. 2QECh. 16 - Prob. 3QECh. 16 - Prob. 4QECh. 16 - Prob. 5QECh. 16 - Prob. 6QECh. 16 - Prob. 7QECh. 16 - Prob. 8QECh. 16 - Prob. 9QECh. 16 - Prob. 10QECh. 16 - Prob. 11QECh. 16 - Prob. 12QECh. 16 - Prob. 1QAPCh. 16 - Prob. 2QAPCh. 16 - Prob. 3QAPCh. 16 - Prob. 4QAPCh. 16 - Prob. 5QAPCh. 16 - Prob. 6QAPCh. 16 - Prob. 1IPCh. 16 - Prob. 2IPCh. 16 - Prob. 3IPCh. 16 - Prob. 4IPCh. 16 - Prob. 5IPCh. 16 - Prob. 6IPCh. 16 - Prob. 7IPCh. 16 - Prob. 8IPCh. 16 - Prob. 9IPCh. 16 - Prob. 10IPCh. 16 - Prob. 11IP
Knowledge Booster
Similar questions
- Distinguish between technical efficiency and economic efficiencyarrow_forward2) Explain why X-inefficiency is likely to be more prevalent in an industry in which firms have market power.arrow_forwardIf a factory is able to use technology to reduce the costs of production, which condition would most likely occur? Demand would decrease Supply would increase. Profit would decrease Wages would increase.arrow_forward
- How does one measure competition in an industry? Can concentration be used as a proxy? What does SCP say about high levels of concentration and low levels of concentration?arrow_forwardPfizer own the copyright for “Pfizer COVID Vaccine (PCV)”. The total cost of producing Q units of PCV is TC=100+50Q+0.5Q2: . The annual demand for PCV is P=300-0.2Q. Q is the number of units of PCV. The annual interest rate facing all agents in the economy is 8.75%. a. How many units of PCV should Pfizer produce? What price should Pfizer charge for one unit of PCV? Clearly explain your reasoning. b. What is TR from PCV to Pfizer? What are Pfizer’s annual profits from PCV? c. Suppose the Pfizer copyright of PCV was due to expire by 2021. Describe the new market structure that would occur if PCV entered the public domain, meaning anybody could use PCV. What would be the new price of one unit of PCV? How many units of PCV would be sold by the COVID vaccine industry?arrow_forwardAndrea’s Day Spa began to offer a relaxing aromatherapy treatment. The firm asks you how much to charge to maximize profits. The first two columns in the table below provide the price and quantity for the demand curve for treatments. The fifth column shows its total costs. Complete the table. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits? Price Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost $25 0 $0 N/A $130 N/A $24 10 $275 $23 20 $435 $22.50 30 $610 $22 40 $800 $21.60 50 $1005 $21.20 60 $1225arrow_forward
- Explain whether the following statement is macro economics or micro economics. A monopolist decision about how many units to sellarrow_forwardThe airline industry was hit particularly hard after the 9/11 attacks on the World Trade Center in 2001. In 2002, Southwest Airlines, one of the healthier airline companies, decided to lengthen the useful lives of its aircraft from 22 to 27 years. Shortly thereafter, following Southwest’s lead, other airlines made the same move.Would it have changed earnings or cash flows, and if it did, would the change have been favorable or negative? Is it favorable or negativearrow_forwardWhat is the economic impact of power quality on consumer side?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
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