Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Chapter 23, Problem 6CQ
To determine
Style and quality competition in the market.
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Chapter 23 Solutions
Economics: Private and Public Choice
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- “Florida orange growers” advertise as a group, but individual orange growers do not. What does this fact suggest about the market for oranges? Why?arrow_forwardIdentify markets in which you act as a buyer/demander and markets in which you act as a seller/supplier. A. Your purchase coffee in a coffee shop B. You consider which politician to vote for an upcoming election. C. You seek employment in the industry for which you have trained. D. You've written a book and several publishers are interested in purchasing the rights to publish your work. E. You're considering which job applicant to hire at your companyarrow_forwardRules and laws are a large part of business. Who imposes regulations that require suppliers to follow and enforce certain guidelines? consumers the government producers technology firmsarrow_forward
- How much profit will it make at that lower price?arrow_forwardI only need help with part e and part f.arrow_forwardImagine you are the owner of the Omaha Surfboard Company. You have a branch in Omaha and in Long Beach CA. After some market research you find the following surfboard demand for each market, Omaha Demand: Qo = 1000 – 10P Long Beach Demand: QL = 1000 – 5P Combined/Total Demand: Q = 2000 – 15P Your marginal cost is constant at $40. a. Find your price and quantity if you treated the market as a single entity with a single price. What is your profit? (Hint: find Marginal Revenue and set equal to MC) b. If you treat each market separately, what is P and Quantity in each market, and final profit?arrow_forward
- Is the corn that you produce different from your competitors? What kind of product do you sell?arrow_forwardpolicies government can have in place to increase perfect competition in the marketarrow_forwardThe graph below shows the daily demand curve for fresh spring water in a remote mountain village in the land of Far Country. The only spring is controlled by the village chief who earns revenue from the sale of water in order to cover the costs of running the village. The villagers bring their own jugs and pay a price per jug as they leave. a. What quantity of jugs would be sold each day in order to maximize his total revenue? Quantity: b. What price would the chief charge? Price: $ c. What is MR at this price and quantity? MR: d. Assuming no marginal costs, what price would the chief charge in order to maximize his total profits? Price: $arrow_forward
- If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect a.competition to force producers to pass the lower production costs on to consumers in the long run. b.the firms in the industry to make long-run economic profit. c.the market price of the products of this industry to decrease in the short run but not in the long run. d.the demand for the products of this industry to increase.arrow_forwardWhether in the case of clothes and cars or in the case of universities, producers spend a lot of money establishing their "brand names" because: Group of answer choices Brand names are established by driving out the competition, after which these companies charge monopoly prices. Government legislation raises the prices of brand named items with price controls, and people have no choice but to pay the higher price for brand name products. There are legal requirements for companies with brand names to spend a percentage of their budget on advertising. Brand names carry a reputation of better quality, and consumers will pay a higher price for brand names.arrow_forwardSuppose High-Tech Software sells two products-a word-processing package and a spreadsheet package. Suppose that the business community values the word-processing package at $100 per unit and the spreadsheet package at $250 per unit while the university community values the word-processing package at $125 and the spreadsheet at $200. (Assume that the marginal cost of each unit is zero.) a. What are the profit-maximizing price that High-Tech should charge if they sell each product separately and what is the total price of the two goods? b. If High-Tech is able to engage in tying, what is the profit-maximizing price for the two products as a bundle? c. Should this be legal?arrow_forward
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