Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 3.3P
To determine
The iPhone app that helps to avoid the misleading of information.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Because of the housing bubble, many houses are now selling for much less than their selling price just two to three years ago. There is evidence that homeowners with virtually identical houses tend to ask for more if they paid more for the house. What fallacy are they making?
6. Exercise 4.6
An econometrician hired to analyse a local golf course has determined that there are two
types of golfers, the regular and the occasional. The annual demand for games from regular
players is given by QH = 24 - 0.3P, where P is the price of a round of golf. On the other
hand, the annual demand for occasional items is given by Q° = 10 - 0.1P. The marginal
cost and the average total cost per item are equal to €20.
a) If you could distinguish between regular and casual players, what price would be set for
each type? How many games would each type of player play? How much profit could the
golf course generate? Represent graphically.
b) As an alternative to the discrimination of third degree prices, those in charge consider a
double tranche rate according to which the members can play as many games as they wish
at a price of € 20 per game. How much profit will the golf course generate if it charges all
players the same annual fee for becoming a member of the club? What if you…
Q-How does profit motive affect innovation and economic productivity? (Pages 43 – 50).
Profit Motive Leads to Innovation and Increased Productivity According to Bruno Leone (1986), “In order to build and maintain a profitable concern, a businessman’s products would have to be needed, well-made, and competitively priced . Moreover, he would be creating jobs and helping to expand the general economy” (18). Profit motive promotes efficiency and productivity in an economy. The investor is constantly seeking new ways to effectively and efficiently provide goods and services to consumer, because, Mises (1986) stated, “Profit and loss are entirely determined by the success or failure of the entrepreneur to adjust production to the demand of the consumers” (40). The behavior of the consumer makes profits and losses occur, and this can result in a change of ownership from those who are inefficient to the efficient ones. Webley (1967) stated, “The successful firms are those that respond to the…
Chapter 17 Solutions
Principles of Economics (12th Edition)
Knowledge Booster
Similar questions
- The onset of the COVID-19 pandemic forced many companies to conduct business remotely rather than in office buildings. In many cases, these companies found it more cost-effective to remain working remotely after the pandemic. Fees for building rentals, electricity, and other expenses are not present when employees work from their homes. One challenge faced by this change in business practice is communication. Employees can no longer walk across the hall, or peek over their cubicle walls, to ask for clarification from their coworker about an issue. More Sunny Day Technology took advantage of this situation to develop and market new computer software to help corporations develop effective communication between virtual employees. Use the knowledge you’ve gained in this and previous Units to answer the following questions. Support your response by providing examples and details. How can More Sunny Day Technology Company market the right price for its new product? How can you comprehend…arrow_forwardThe onset of the COVID-19 pandemic forced many companies to conduct business remotely rather than in office buildings. In many cases, these companies found it more cost-effective to remain working remotely after the pandemic. Fees for building rentals, electricity, and other expenses are not present when employees work from their homes. One challenge faced by this change in business practice is communication. Employees can no longer walk across the hall, or peek over their cubicle walls, to ask for clarification from their coworkers about an issue. Sunny Day Technology took advantage of this situation to develop and market new computer software to help corporations develop effective communication between virtual employees. Use the knowledge you’ve gained in this and previous Units to answer the following questions. Support your response by providing examples and details. How can More Sunny Day Technology Company market the right price for its new product? How can you comprehend…arrow_forwardOnly typed answerarrow_forward
- Your own a chocolate producing company which can advertise on both television (T) and internet(I). The effect of TV and online commercials on sales is again given byS(T,I) = 500 + 48T−6T2+ 112I−6I2+ 4TI. You have a budget of $25 that you can spend on T and I. The price of aTV commercial is $12per unit and the price of an online commercial is also $12 per unit. 1. Determine the optimal level of TV commercials T and online commercials I if you have to spend all of your budget. You should provide two methods to solve this, by direct substitution and by setting up the Lagrangian. Is the Lagrange multiplier positive or negative? Give an intuitive interpretation of why this is the case? 2. Now determine the optimal level of TV commercials T and online commercials I if you DO NOT have to spend all of your budget. Do you obtain the same answer as subquestion 5.1? What is the Lagrange multiplier equal to in this case? Discuss.arrow_forwardChapter 1: Problem 20 Annie McCoy, a student at Tech, plans to open a hot dog stand inside Tech's football stadium during home games. There are seven home games scheduled for the upcoming season. She must pay the Tech athletic department a vendor's fee of $3,000 for the season. Her stand and other equipment will cost her $4,500 for the season. She estimates that each hot dog she sells will cost her $0.35. © 2007 Wileyarrow_forwardScenario Between recalls on mass-produced commercial dog food and a general understanding of the benefits of a healthier diet for pets, the demand for natural or organic dog food is experiencing a significant increase. Wanda's treats are more expensive than the mass-produced treats found in most grocery and big box stores, but she prides herself on providing high-quality products and believes that her customers are willing to pay the extra money for quality. 1. How does Wanda's strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treats? 2. Identify and describe an event that might occur in the economy that would cause Wanda's strategy to no longer be successful for Salty Pawz. If this event occurred, What actions would Wanda have to take in response, and what impact might they have on her business?arrow_forward
- The Chicago Bears offer what are essentially two products: preseason and regular season football games. They play 2 preseason and 8 regular season home games. Suppose that Fred is a serious football fan. He values the preseason games at $140 each and the regular season games at $220 each. Joe is a more casual fan. He values the preseason games at $170 each and the regular season games at $180 each. Suppose that Fred and Joe are the only fans. If the Bears sell the tickets separately, the price of a ticket to a preseason game will be $ 140 The price of a ticket to a regular season game will be $ 180 Total revenue that the Chicago Bears collect will be $ 3440 If the Bears bundle tickets for the two preseason and eight regular season games together, the price the team will set for the bundle is S. Total revenue that the Chicago Bears collect will be S Should the Bears' managers sell the tickets separately or as a bundle? O A. The Bears should sell the tickets separately because they earn…arrow_forwardGive typing answer with explanation and conclusionarrow_forwardWhy does Pinterest see Google as its biggest competitor? Why does Pinterest prioritize the smartphone platform while developing new features and products?arrow_forward
- The following are excerpts from the article: Stirring the Pot . $80 Coffee Beans – Yikes! Bangor Times. May 22nd, 2016. “ The Third Wave in coffee refers to the growth of small, independent coffee roasters who developed as an alternative to Starbucks when that company grew and disaffected coffee drinkers looked for alternative sources for their caffeinated drinks." "...companies of this type provide a relatively small clientele with great tasting coffees and verified attributes in the sourcing of coffee beans- organic, shade- grown, bird friendly, direct trade (it's better than fair trade), single-farm sourced, etc". "For a Third Wave coffee company, the goal is to satisfy existing consumer interest or create new consumer interest in attributes that its customers believe only that company can offer." "...firms are always trying to create new and better differentiation to set themselves apart from those who have been successfully earning monopoly profits. This very phenomenon is seen as…arrow_forwardSelling T-shirts is easy. Consumers spend at least $15 billion a year on them. Moreover, the inventory is easy to store, doesn’t spoil, and is compact. On the surface, a great business. But there’s a catch—everybody and his brother sells T-shirts. Every beach resort has dozens of T-shirt shops. And they sprout like weeds at every major sporting or concert venue. And then there are all the online sites that offer custom designs and quick delivery. So, the competition is intense. This makes it near impossible for any T-shirt shop to raise the price of its T-shirts, much less hold on to profits. The owner of a T-shirt shop in South Padre Island, Texas, lamented, “Every day you have to compete with other shops. And if you invent something new, they will copy you.” Questions:1.What determine the ability to make profit on this market of T-Shirts?arrow_forward(Hint: Example 11.4, p.162/280) Avis Company is a car rental company that is located 3 miles from the Los Angeles airport. Avis is dispatching a bus from its offices to the airport every 4 minutes. The average traveling time (round trip) is 30minutes. a- How many Avis buses are traveling to and from the airport? b- The branch manager wants to improve service and suggests dispatching buses every .5 minutes. She argues that this will reduce the average traveling time from the airport to Avis offices to 2.5 minutes. Is she correct? If your answer is negative then what will the average traveling time be?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher: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
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning