Microeconomics
13th Edition
ISBN: 9781337671590
Author: Arnold
Publisher: Cengage
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Question
Chapter 6, Problem 14QP
To determine
The impact of decrease in the
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The Firm's Output Decision (Study Plan 12.2)
Use the following table to work Problems 4 to 6.
Pat's Pizza Kitchen is a price taker. Its costs are
Output
(pizzas per hour)
Total cost
(dollars per hour)
0
10
1
21
2
30
3
41
4
54
5
69
4. Calculate Pat's profit-maximizing output and
economic profit if the market price is
(i) $14 a pizza.
(ii) $12 a pizza.
(iii) $10 a pizza.
5. What is Pat's shutdown point and what is Pat's
economic profit if it shuts down temporarily?
6. Derive Pat's supply curve.
Use the following table to work Problems 27 and 28.
ProPainters hires students at $250 a week to paint
houses. It leases equipment at $500 a week. The
table sets out its total product schedule.
Labor
(students)
1
Output
(houses painted per week)
2
23
5
3
9
4
12
5
14
6
15
27. If ProPainters paints 12 houses a week, calculate its
total cost, average total cost, and marginal cost. At
what output is average total cost a minimum?
28. Explain why the gap between ProPainters' total
cost and total variable cost is the same no matter
how many houses are painted.
Use the following table to work Problems 17 to 20.
The table shows the production function of Jackie's
Canoe Rides.
Labor
Output (rides per day)
(workers per day)
Plant 1 Plant 2 Plant 3 Plant 4
10
20
40
55
65
20
40
60
75
85
30
65
75
90
100
40
75
85
100
110
Canoes
10
20
30
40
Jackie's pays $100 a day for each canoe it rents
and $50 a day for each canoe operator it hires.
19. a. On Jackie's LRAC curve, what is the average
cost of producing 40, 75, and 85 rides a week?
b. What is Jackie's minimum efficient scale?
Chapter 6 Solutions
Microeconomics
Ch. 6.1 - On Tuesday, the price and quantity demanded are 7...Ch. 6.1 - What does a price elasticity of demand of 0.39...Ch. 6.1 - Prob. 3STCh. 6.1 - Prob. 4STCh. 6.2 - Prob. 1STCh. 6.2 - Prob. 2STCh. 6.4 - Prob. 1STCh. 6.4 - Prob. 2STCh. 6.4 - Prob. 3STCh. 6.4 - Prob. 4ST
Ch. 6 - Prob. 1QPCh. 6 - For each of the following, identify where demand...Ch. 6 - Prove that price elasticity of demand is not the...Ch. 6 - Prob. 4QPCh. 6 - Prob. 5QPCh. 6 - Suppose a straight-line downward-sloping demand...Ch. 6 - Prob. 7QPCh. 6 - Prob. 8QPCh. 6 - Prob. 9QPCh. 6 - Prob. 10QPCh. 6 - Suppose you learned that the price elasticity of...Ch. 6 - Prob. 12QPCh. 6 - Prob. 13QPCh. 6 - Prob. 14QPCh. 6 - A college raises its annual tuition from 23,000 to...Ch. 6 - As the price of good X rises from 10 to 12, the...Ch. 6 - The quantity demanded of good X rises from 130 to...Ch. 6 - The quantity supplied of a good rises from 120 to...Ch. 6 - In the accompanying figure, what is the price...
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