Principles Of Economics, Ap Edition, 9781337292603, 1337292605, 2018
8th Edition
ISBN: 9781337292603
Author: Mankiw
Publisher: Cengage Learning (2018)
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Question
Chapter 22, Problem 8PA
Subpart (a):
To determine
Total surplus.
Subpart (b):
To determine
The efficient outcome.
Subpart (c):
To determine
The efficient outcome.
Subpart (d):
To determine
The efficient outcome.
Subpart (e):
To determine
The efficient outcome.
Subpart (f):
To determine
The efficient outcome.
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Use the table to answer the question.Peter and Olga live near a lake with open fishing, and both have fishing boats there. They are the only two sellers in
their local fish market. What is likely to be the outcome in a Nash equilibrium?
Peter and Olga Fish in the Lake
Peter fishes every day
Olga fishes every day
Both Olga and Peter have smaller and smaller
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Peter fishes two times each week
Olga catches and sells more fish than Peter
Olga fishes two timeseach week
Peter catches and sells more fish than Olga
Both Olga and Peter have large catches each fishing trip
Oa. Both Olga and Peter continue to have large catches on each fishing trip.
Ob. Peter catches and sells more fish than Olga.
OC. Olga catches and sells more fish than Peter.
Od. Both Olga and Peter have smaller and smaller catches over time.
A firm is considering building a two-way network that links 12 users. The cost of building the network is $10,000. a. How many potential connection services does this network provide? b. If each user is willing to pay $150 to connect to the network, will the firm profit by building the network? c. If each user is willing to pay an average of $12 for each potential connection service provided by the network, will the firm profit by building the network? d. What happens to the number of potential connection services if one additional user joins the network?
Three roommates, Alan, Billy and Casey, are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch. Table below indicates their willingness to pay for each movie:
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3rd movie
4th movie
5th movie
Alan
$20
$10
$0
$0
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$30
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$10
$0
$0
Casey
$50
$40
$30
$20
$10
Explain why some people believe that the showing of a movie within the dorm room is a public good.
Chapter 22 Solutions
Principles Of Economics, Ap Edition, 9781337292603, 1337292605, 2018
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