Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
thumb_up100%
Chapter 23, Problem 17CQ
(a)
To determine
Profit of R.
(b)
To determine
The marginal revenue and marginal cost of the firm.
(c)
To determine
The profit maximizing price of the seller.
(d)
To determine
The profit maximizing output of the seller.
(e)
To determine
The profit and the output of the seller.
(f)
To determine
The profit maximizing level with the marginal revenue and the marginal cost.
(g)
To determine
The impact of the seller.
(h)
To determine
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Practice #6
Francine is a a dental floss tycoon living in Montana. She faces the following demand curve for her product:
Price ( in $/unit) Quantity demanded
2.50 1000
2.20 2000
1.90 3000
1.60 4000
1.30 5000
1.00 6000
.70 7000
.40 8000
Francine has been told by her brother, who is currently taking a marketing class, that if she lowers her price by one increment(for example; changing price from .70 to .40, she will capture market share and increase total revenue. All of her advisors within the company have assured Francine that her brother's advice may be correct, BUT the above demand curve will not change. Assume that Francine knows the above demand curve will not change and is also considering her brother's advice. The prices can only change in…
You own a bakery and shop that makes and sells gourmet doggie treats. You have done
market research and you know with certainty that your product is a normal good, not an
inferior good. The current demand function for your gourmet doggie treats is:
QD = 480 -6*P
which of course means the equation for your current demand curve is:
P = 80 -(1/6)*Q
You are opening a new shop in a new part of town, and you know that incomes in that part of
town are much lower than incomes are where your shop is now. Which of the following is
most likely the demand curve in your new shop?
Multiple Choice
O
P=68- (1/6)*Q
P = 102 - (1/6)*Q
P=92-(1/6)*Q
P = 88 - (1/6)*Q
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $20, $12, $8, $4, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $8, $12, $20, $32, and $44 (one buyer at each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
Price
Quantity Demanded
Quantity Supplied
($ per widget)
(widgets)
(widgets)
$2
$4
$8
$12
$20
$32
$44
In this market, the equilibrium price will be______ per widget, and the equilibrium quantity will be ___ (#) widgets.
Chapter 23 Solutions
Economics: Private and Public Choice
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Femi's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Femi Initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Femi's HookNLadder. As the graph shows, in order to sell the additional fire truck; Femi must lower the price from $160,000 to $120,000 per truck. Notice that Femi gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000. PRICE (Thousands of dollars per fire engine) 8 8 2 2 2 2 8 2 2 2 20 220 200 180 160 140 120 100 60 40 0 2 3…arrow_forwardyou own a small cineplex theater with 200 seats. the demand for seats is Q=3000-20P. you are charging rm6.50 per ticket and selling tickets to 160 people. your costs are fixed at rm125 and do not depend on the number of people attending. should you cut your price to fill the theatee? explain. what other pricing policies might you use to increase your profits?arrow_forwardNn.47. Subject :- Economyarrow_forward
- If you are selling Mercedes-Benz cars in your showroom, what product "substitutes" are available to your prospective customers?arrow_forwardI pretty sure I got the first part right. I am struggling with bottom parts.arrow_forwardEdison's Fire Engines is the sole seller of fire engines in the fictional country of Pyrotania. Initially, Edison produced eight fire engines, but he has decided to increase production to nine fire engines. The following graph shows the demand curve Edison faces. As you can see, to sell the additional engine, Edison must lower his price from $80,000 to $60,000 per fire engine. Note that while Edison gains revenue from the additional engine he sells, he also loses revenue from the initial eight engines because he sells them all at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial eight engines by selling at $60,000 rather than $80,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $60,000. 100 90 PRICE (Thousands of dollars per fire engine) 8 80 70 60 50 40 30 10 0 Edison 0 1 O True 2 O False + 6 3 4 5 7 QUANTITY (Fire…arrow_forward
- Daffy’s is a pet care company that recently increased the average price of its services by 5%. As a result, the number of customers dropped by 4%. Buffy’s, a pet adoption company, opens up right next door to Daffy’s. How will this likely impact the demand for services at Daffy’s?arrow_forwardUnsure how to solve this problem set correctly Part 2: Blank 1 options: Should or should not Blank 2 options: Greater or lessarrow_forwardQ2. Your brother is considering two cell phone providers i.e. UFONE and MOBILINK. UFONE charges Rs.520 (super card) per month for the service regardless of the number of phone calls made. MOBILINK does not have a fixed service fee but instead charges Rs. 1 per minute for calls. Your brother's monthly demand for minutes of calling is given by the equation Q = 150 - 50P, where P is the price of a minute a. With each service provider, what is the cost to your brother of an extra minute on the phone? b. In light of your answer to (a) part, how many minutes would your brother talk on the phone with each service provider? c. How much would he end up paying each provider every month?arrow_forward
- Demand for Corn Flakes is: P = 10 - Q Supply of Kellogg's Corn Flakes is: P = 2 + Q Now a generic company enters the market, selling generic Corn Flakes for $4. Assume consumers are indifferent between generic and Kellogg's Corn Flakes. How many boxes of generic Corn Flakes will sell?arrow_forwardFrancine is a a dental floss tycoon living in Montana. She faces the following demand curve for her product: Price ( in $/unit) Quantity demanded 2.50 1000 2.20 2000 1.90 3000 1.60 4000 1.30 5000 1.00 6000 .70 7000 .40 8000 Francine has been told by her brother, who is currently taking a marketing class, that if she lowers her price by one increment(for example; changing price from .70 to .40, or raising price from .40 to .70) she will capture market share and increase total revenue. All of her advisors within the company have assured Francine that her brother's advice may be correct, BUT the above demand curve will not change. Assume that Francine knows the above demand curve will not change and is also considering her brother's advice. The prices can only…arrow_forwardMo's HookNLadder is the only company selling fire engines in the fictional country of Alexandrina. Mo initially produced five trucks, but then decided to increase production to six trucks. The following graph gives the demand curve faced by Mo’s HookNLadder. As the graph shows, in order to sell the additional fire truck, Mo must lower the price from $160,000 to $120,000 per truck. Notice that Mo gains revenue from the sale of the additional engine, but at the same time, he loses revenue from the initial five engines because they are all sold at the lower price. Use the purple rectangle (diamond symbols) to shade the area representing the revenue lost from the initial five engines by selling at $120,000 rather than $160,000. Then use the green rectangle (triangle symbols) to shade the area representing the revenue gained from selling an additional engine at $120,000.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
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
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
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
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 (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning