Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 16, Problem 9IP
(a)
To determine
High priced contract between UCLA and Company P.
(b)
To determine
Absence of pouring rights in the campus.
(c)
To determine
Impact of pouring-rights on students.
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Please submit the answer and then watch the video feedback.Farmer Ted sells 1,000 bushels of wheat at a price of $5 per bushel in a competitive market. Wilma sells 5 gallons of water at a price of $5 per gallon in a monopoly market. If both Farmer Ted and Wilma want to sell a higher quantity, what happens to their respective prices?
a.Farmer Ted's price remains constant and Wilma's price decreases.
b.Farmer Ted's price decreases and Wilma's price remains constant.
c.Farmer Ted's price remains constant and Wilma's price increases.
d.Both Farmer Ted's and Wilma's prices decrease.
Q1: If only one airline service a town, does a monopoly exist? What about competition from other services?
Q2: Suppose that you are an orange grower. Would you expect the demand for your orange to be more elastic or more inelastic? Why?
Q3: Mr Han Cook says that marginal cost is just a funny name for average total cost. What do you think about this ideas?
Q4: How prices reaches equilibrium? Give an example.
Imagine a small town in which only two residents, Rochelle and Alec, own wells that produce safe drinking water. Each week Rochelle and Alec work together to decide
how many gallons of water to pump. They bring the water to town and sell it at whatever price the market will bear. To keep things simple, suppose that Rochelle and
Alec can pump as much water as they want without cost so that the marginal cost of water equals zero. The town's weekly demand schedule and total revenue schedule
for water is shown in the following table:
Quantity
(Gallons)
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
Table 17-1
Price
Refer to Table 17-1. What is the socially efficient quantity of water?
Ca. 600 gallons
Ob. 900 gallons
Oc. 1,200 gallons
Od. 0 gallons
(Dollars per
gallon)
60
55
50
45
40
35
30
25
20
15
10
5
0
Total Revenue and Total
Profit
(Dollars)
0
5,500
10,000
13,500
16,000
17,500
18,000
17,500
16,000
13,500
10,000
5,500
0
Chapter 16 Solutions
Microeconomics
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
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