Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 5, Problem 4IP
(a)
To determine
Reason for the existence of the board.
(b)
To determine
Options to propose the system.
(c)
To determine
Political issues for the program implementation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In Fruitland, strawberries are sold in 4-litre baskets to customers on a "pick-your-own" basis. There are 2 farmers who sell strawberries: Mickey and Kit. There are no costs of supplying strawberries for sale for
either farmer, so each has MC = ATC = 0. Profit therefore is simply TR. Market demand for strawberries is given in the accompanying table. If the market were served by a monopolist, the quantity traded would
be 125 baskets, the price per 4-litre basket would be $7.50, and the profit for the firm would be $937.50. If Mickey and Kit decided to collude, each would have an individual quantity supplied of 62.5 baskets
and each would have profits of $468.75. Suppose Mickey and Kit agree to split the monopoly outcome. Kit, acting in her own self-interest, realizes that she can cheat and supply 87.5 baskets; when she does,
Kit's profits are $525.00 and Mickey's profits are $375.00. Mickey decides to retaliate and increases his supply to 87.5 baskets too; when he does, Kit's profits…
The greater young expert Hand written solution is not allowed
As the owner of the only tennis club in an isolated wealthy community, you must decide on membership dues and fees for court time. There are two types of tennis players. "Serious" players have a weekly demand
Ps = 12- Qs
where Q, is court hours per week and Pis the fee per hour for each individual player. There are also "occasional" players with a weekly demand
P = 16 - 4Q0
Assume that there are 1,000 players of each type. Because you have plenty of courts, the marginal cost of court time is
$0. You have fixed costs of $15.000 per week.
Suppose that to maintain a "professional" atmosphere, you want to limit membership to serious players. How should you set the annual membership dues and court fees (assume 52 weeks per year) to maximize profits, keeping in
mind the constraint that only serious players choose to join? What would profits be (per week)? (round your answers to whole dollars)
The annual membership fee is S
The court fee is S
Weekly profit is $
Chapter 5 Solutions
Microeconomics
Ch. 5.1 - Prob. 1QCh. 5.1 - Prob. 2QCh. 5.1 - Prob. 3QCh. 5.1 - Prob. 4QCh. 5.1 - Prob. 5QCh. 5.1 - Prob. 6QCh. 5.1 - Prob. 7QCh. 5.1 - Prob. 8QCh. 5.1 - Prob. 9QCh. 5.1 - Prob. 10Q
Ch. 5.A - Prob. 1QECh. 5.A - Prob. 2QECh. 5.A - Prob. 3QECh. 5.A - Prob. 4QECh. 5.A - Prob. 5QECh. 5.A - Prob. 6QECh. 5.A - Prob. 7QECh. 5.A - Prob. 8QECh. 5.A - Prob. 9QECh. 5 - Prob. 1QECh. 5 - Prob. 2QECh. 5 - Prob. 3QECh. 5 - Prob. 4QECh. 5 - Prob. 5QECh. 5 - Prob. 6QECh. 5 - Prob. 7QECh. 5 - Prob. 8QECh. 5 - Prob. 9QECh. 5 - Prob. 10QECh. 5 - Prob. 11QECh. 5 - Prob. 12QECh. 5 - Prob. 13QECh. 5 - Prob. 14QECh. 5 - Prob. 15QECh. 5 - Prob. 16QECh. 5 - Prob. 17QECh. 5 - Prob. 1QAPCh. 5 - Prob. 2QAPCh. 5 - Prob. 3QAPCh. 5 - Prob. 4QAPCh. 5 - Prob. 5QAPCh. 5 - Prob. 1IPCh. 5 - Prob. 2IPCh. 5 - Prob. 3IPCh. 5 - Prob. 4IPCh. 5 - Prob. 5IPCh. 5 - Prob. 6IPCh. 5 - Prob. 7IPCh. 5 - Prob. 8IPCh. 5 - Prob. 9IPCh. 5 - Prob. 10IPCh. 5 - Prob. 11IPCh. 5 - Prob. 12IPCh. 5 - Prob. 13IPCh. 5 - Prob. 14IP
Knowledge Booster
Similar questions
- The market demand for medical checkups per day, QF, is Q=25(200-PF), where pe represents the price of a checkup The market demand for the number of dental checkups per day, QT, is Q=30(50-PT), where p, represents the price of a dental checkup. The market supply of medical checkups is QF =60PF-10PT The market supply of dentists is QT 60PT-20PF- The supplies are linked because people decide whether to be doctors and dentists on the basis of relative earnings. The quantity supplied of medical checkups depends on the price of dental checkups. What does the supply function property imply about the effect of price changes? As py increases, more peop become doctors and fewer people become dentists. Similarly, as pr increases, fewer people become doctors and more people become dentists. What are the equilibrium prices? (Enter numeric all responses using real numbers rounded to two decimal places.) The equilibrium prices are $71.00 for medical checkups and $32.5 for dental checkups.arrow_forwardIn the United States, the Food and Drug Administration (FDA) enforces regulations aimed at ensuring that new drugs that are marketed do, in fact, have the functions they are supposed to have. Which of the following arguments provides an appropriate justification for such regulations? These regulations are necessary because: A. verification by each consumer would be extremely inefficient B. verification is an easy task within a market economy C. quantity regulations are so rare within a market economy D. quantity regulations are so efficientarrow_forwardIn the United States, the Food and Drug Administration (FDA) enforces regulations aimed at ensuring that new drugs that are marketed do, in fact, have the functions they are supposed to have. Which of the following arguments provides an appropriate justification for such regulations? These regulations are necessary because: A.verification by each consumer would be extremely inefficient B.verification is an easy task within a market economy C. quantity regulations are so rare within a market economy D. quantity regulations are so efficientarrow_forward
- In the following situation, indicate whether the physician's discriminatory action is taste-based or statistical. A physician believes that Hispanic patients are less likely to follow through with an expensive therapeutic regimen that leads to major side effects, so he does not ever prescribe it for them. Taste-based Statisticalarrow_forwardQ4-11: Suppose we have a monopolist supplying two different markets. The demand in these markets is given by two types of consumers, each buying exactly one unit of the product a monopolist is selling so long as their consumer surplus is non-negative. If the consumer has a choice, she or he will buy the product that gives them the highest consumer surplus. the monopolist has estimated the indirect utility (CS) of each type of consumer as V₁ = 7z₁ - P₁ V₂ = 222 - P2 == where = {1,2} is the quality chosen by the monopolist i.e. vertical differentiation. The monopolist does not know each consumer's type. There are 397 type one consumers and 107 type two consumers. Finally suppose the marginal cost for all quantities is given by e(z) = 2. Q4-1: What are the lowest qualities type 1 and 2 consumers will demand. Q4- 3: What are the incentive compatibility constraints for type 1 and 2 Q4-4: The monopolist has three options: ■Sell only to high type consumers ■ Sell to both consumers the same…arrow_forwardPreventative care refers to care taken to prevent future diseases rather than to treat current ones. Compared to emergency room care, preventative care is rarely urgent, and benefits can be difficult to measure-if you had the flu vaccine this year but did not catch the flu, it is difficult for an individual to tell if that was because of the shot or assiduous hand washing. Given this description, we would expect the price of preventative care to be relatively price elastic compared to emergency room care. less morearrow_forward
- Consider the demand and supply for illicit drugs. Assume you have been appointed by the government to recommend on an optimal policy to tackle the problem. You are told that the price elasticity of demand (or own-price elasticity) is <1 (i.e., inelastic) and that the price elasticity of supply is >1 (i.e., elastic). Would you recommend the government intervene on the demand side or the supply side. Explain your answer. What sorts of policies would you recommend?arrow_forwardThe point of scalping is to find someone who wants a ticket more than the person who presently has it. Whenever two different prices exist in a market, arbitrage opportunities (buy and then sell at a higher price) are there. Professional scalpers buy up tickets when they are first offered to the public, while some buy them on the street the night of the event. They can sell any ticket, even those in short supply, at some price. When many people want to go to an event that has a limited supply of tickets, the scalping price can be quite high. Go online and find scalping agencies like StubHub and SeatGeek. See if you can find an event for which the scalping price is much higher than the original price. What determines whether the event is worth the higher price? It is argued that scalping is efficient. Explain that argument. Others ask how could it be efficient “if only rich people can afford to go to most games?” Do you agree? Why or why not?arrow_forwardWhat membership fee would maximize profit for the club? Compared to the profit of a similar but single-price monopoly golf club, how much more profit does Northlands Golf Club make?arrow_forward
- Price discrimination is a quite common phenomenon in a market economy. Choose any FOUR (4) price discrimination strategies and explain how producers of hand-sanitizers can implement the strategies during the COVID-19 pandemic.arrow_forwardHow is voluntary simplicity related to thematerialism value? What are the marketingimplications of voluntary simplicity? Do theseimplications vary by product class?arrow_forwardIn the United States, most hospitals are non-profit, while nearly all pharmaceutical companies are for profit. Can you offer an explanation based on the consumer shopping problem?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
