Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 16, Problem 6SPPA
To determine
To explain:
The changes in the economic profit, consumer surplus, and
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Hot Air Balloon Rides is a single-price monopoly.
Columns 1 and 2 of the table set out the market demand
schedule and columns 2 and 3 set out the total cost
schedule.
Calculate Hot Air's profit-maximizing output and price.
Calculate the economic profit.
Hot Air's profit-maximizing number of rides is 3 a month
and the profit-maximizing price is $160 a ride.
>>> Answer to 1 decimal place.
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Price
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Quantity
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per month)
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3
4
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Total cost
(dollars per
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80
160
280
440
640
880
QUESTION 3
You are considering subscribing to ESPN+. You are willing to pay up to $83 per year for a subscription. The current annual price is $26. Calculate your consumer surplus under these circumstances.
QUESTION 4
180
168
156
144
132
120
108
96
84
72
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48
36
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45
90
135
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Quantity
P -MR---MC=AC
A monopoly face the following demand, marginal revenue and marginal cost functions
Note that in this case MC(Q)= AC(Q) for all Q.
Calculate the monopoly's profits if the monopoly charges the single profit maximizing price
O 18,550
O 19,440
O 19,100
O 14,500
Calculate the price in Country U using the following information in a Monopoly market
when there is a possibility for resale:
The elasticity of demand in Country J is -5.5 and Country U is -2.2
Marginal cost is $12.
a. $22
b. $22.5
c. -$22.5
d. $12
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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