MANKIW: PRINCIPLES OF MICROECONOMICS
8th Edition
ISBN: 9781337801775
Author: Mankiw
Publisher: CENGAGE L
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Question
Chapter 18, Problem 1CQQ
To determine
The competitive firm hiring labor.
Expert Solution & Answer
Answer to Problem 1CQQ
Option ‘c’ is the correct answer.
Explanation of Solution
Option (c):
The share of
Option (a)
The given amount of share is less than the actual share. Therefore, option ‘a’ is incorrect.
Option (b)
The given amount of share is less than the actual share. Hence, option ‘b’ is incorrect.
Option (d)
The given amount of share is greater than the actual share. Therefore, option ‘d’ is incorrect.
Economics Concept Introduction
Concept introduction:
National income: National income refers to the sum of all the income received within a given period of time.
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8. The current price of 3M stock is $87 per share. The previous dividend paid was $5.96, and
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Show at least two decimal places, as in x.xx%
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Joy's Frozen Yogurt shops have enjoyed rapid growth in northeastern states in recent years. From
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Q=200-300P+1201 +657-250A +400A;
where Q = number of cups served per week
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Taverage outdoor temperature
A competition's monthly advertising expenditures (thousands)
=
A; = Joy's own monthly advertising expenditures (thousands)
One of the outlets has the following conditions: P = 1.50, I = 10, T = 60, A₁ = 15, A; = 10
1. Estimate the number of cups served per week by this outlet. Also determine the outlet's
demand curve.
2. What would be the effect of a $5,000 increase in the competitor's advertising expenditure?
Illustrate the effect on the outlet's demand curve.
3. What would Joy's advertising expenditure have to be to counteract this effect?
The Compute Company store has been selling its special word processing software, Aceword, during
the last 10 months. Monthly sales and the price for Aceword are shown in the following table. Also
shown are the prices for a competitive software, Goodwrite, and estimates of monthly family income.
Calculate the appropriate elasticities, keeping in mind that you can calculate an elasticity measure
only when all other factors do not change (using Excel). For example, price elasticities, months
1-2.
Month
Price
Aceword
Quantity
Aceword
Family
Income
Price
Goodwrite
1
$120
200
$4,000
$130
21
120
210
4,000
145
3
120
220
4,200
145
4
110
240
4,200
145
90
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115
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4,200
145
6
115
215
4,200
125
10
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115
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4,400
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230
4,400
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4,600
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105
220
4,600
115
Chapter 18 Solutions
MANKIW: PRINCIPLES OF MICROECONOMICS
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