Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 2, Problem 2.2P
Subpart (a):
To determine
Production possibilities frontier.
Subpart (b):
To determine
Inefficient production possibility frontier.
Subpart (c):
To determine
What point to choose on PPF.
Subpart (d):
To determine
How the production of society will be divided.
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The table below presents the demand schedule and marginal costs facing a monopolist producer.
a. Fill in the total revenue and marginal revenue columns.
Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure
to include a negative sign (-) in front of those numbers. Leave no cells blank. Enter 0 if appropriate.
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MR ($)
MC ($)
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3
4
4
4
5
5
3
6
6
2
7
1
8
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b. What is the profit-maximizing level of output?
units
c. What price will the monopolist charge to maximize profits?
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not use ai please
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What is the new budget line equation?
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a. If the price of movies is $20 and the price of golf is $40, what is the utility-maximizing
consumption of movies and golf?
b. Show the optimal consumption bundle on a graph, showing a budget line (with
intercepts), a tangent indifference curve, and the optimal choice.
3. Sam has set aside $480 for entertainment this month, which is golf (x) and/or bowling (z). A
round of golf is $40 and a night of bowling is $30. His utility function is U = 3x + 2z.
a. What is his MRS?
b. Solve for the optimal choice of golf…
Chapter 2 Solutions
Principles of Economics (12th Edition)
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