(a) Whether a business of cappuccino café is a price taker?

Question

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Answer 1

Question

Chapter 7, Problem 1P

To determine

(a)

Whether a business of cappuccino café is a price taker?

Expert Solution

Answer to Problem 1P

The café is a price taking producer

Explanation of Solution

In the given case, the café operates in a university town where there are various similar kinds of cafés.

Here, since the café is not the only one in the market, it cannot fix a price of their own choice. Hence, it is a price-taking producer..

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(b)

To determine

Whether a maker of pepsi-cola are price-takers?

(b)

Expert Solution

Answer to Problem 1P

Pepsi Company is not a price-taking producer.

Explanation of Solution

In the given case, Pepsi Company is not in a perfectly competitive market and is one of the few cola producers.

Moreover, its product differs from other cola products and hence, it is possible for the Pepsi Company to offer its product at a price of its own choice.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(c)

To determine

Whether a seller of Zucchini is a price-taker?

(c)

Expert Solution

Answer to Problem 1P

The sellers of zucchini are price-taking producers.

Explanation of Solution

In the given case, there are numerous sellers of the product zucchini in the market and each seller has a small share in the market.

It is not possible for a single seller to affect the price of the product and hence, the sellers of zucchini are price-taking producers.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer

needs to sell goods at those prices that prevail in the market.

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Answer 2

Question

Chapter 7, Problem 1P

To determine

(a)

Whether a business of cappuccino café is a price taker?

Expert Solution

Answer to Problem 1P

The café is a price taking producer

Explanation of Solution

In the given case, the café operates in a university town where there are various similar kinds of cafés.

Here, since the café is not the only one in the market, it cannot fix a price of their own choice. Hence, it is a price-taking producer..

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(b)

To determine

Whether a maker of pepsi-cola are price-takers?

(b)

Expert Solution

Answer to Problem 1P

Pepsi Company is not a price-taking producer.

Explanation of Solution

In the given case, Pepsi Company is not in a perfectly competitive market and is one of the few cola producers.

Moreover, its product differs from other cola products and hence, it is possible for the Pepsi Company to offer its product at a price of its own choice.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(c)

To determine

Whether a seller of Zucchini is a price-taker?

(c)

Expert Solution

Answer to Problem 1P

The sellers of zucchini are price-taking producers.

Explanation of Solution

In the given case, there are numerous sellers of the product zucchini in the market and each seller has a small share in the market.

It is not possible for a single seller to affect the price of the product and hence, the sellers of zucchini are price-taking producers.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer

needs to sell goods at those prices that prevail in the market.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 7, Problem 1P

To determine

(a)

Whether a business of cappuccino café is a price taker?

Expert Solution

Answer to Problem 1P

The café is a price taking producer

Explanation of Solution

In the given case, the café operates in a university town where there are various similar kinds of cafés.

Here, since the café is not the only one in the market, it cannot fix a price of their own choice. Hence, it is a price-taking producer..

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(b)

To determine

Whether a maker of pepsi-cola are price-takers?

(b)

Expert Solution

Answer to Problem 1P

Pepsi Company is not a price-taking producer.

Explanation of Solution

In the given case, Pepsi Company is not in a perfectly competitive market and is one of the few cola producers.

Moreover, its product differs from other cola products and hence, it is possible for the Pepsi Company to offer its product at a price of its own choice.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(c)

To determine

Whether a seller of Zucchini is a price-taker?

(c)

Expert Solution

Answer to Problem 1P

The sellers of zucchini are price-taking producers.

Explanation of Solution

In the given case, there are numerous sellers of the product zucchini in the market and each seller has a small share in the market.

It is not possible for a single seller to affect the price of the product and hence, the sellers of zucchini are price-taking producers.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer

needs to sell goods at those prices that prevail in the market.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 7, Problem 1P

To determine

(a)

Whether a business of cappuccino café is a price taker?

Expert Solution

Answer to Problem 1P

The café is a price taking producer

Explanation of Solution

In the given case, the café operates in a university town where there are various similar kinds of cafés.

Here, since the café is not the only one in the market, it cannot fix a price of their own choice. Hence, it is a price-taking producer..

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(b)

To determine

Whether a maker of pepsi-cola are price-takers?

(b)

Expert Solution

Answer to Problem 1P

Pepsi Company is not a price-taking producer.

Explanation of Solution

In the given case, Pepsi Company is not in a perfectly competitive market and is one of the few cola producers.

Moreover, its product differs from other cola products and hence, it is possible for the Pepsi Company to offer its product at a price of its own choice.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(c)

To determine

Whether a seller of Zucchini is a price-taker?

(c)

Expert Solution

Answer to Problem 1P

The sellers of zucchini are price-taking producers.

Explanation of Solution

In the given case, there are numerous sellers of the product zucchini in the market and each seller has a small share in the market.

It is not possible for a single seller to affect the price of the product and hence, the sellers of zucchini are price-taking producers.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer

needs to sell goods at those prices that prevail in the market.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 7, Problem 1P

To determine

(a)

Whether a business of cappuccino café is a price taker?

Expert Solution

Answer to Problem 1P

The café is a price taking producer

Explanation of Solution

In the given case, the café operates in a university town where there are various similar kinds of cafés.

Here, since the café is not the only one in the market, it cannot fix a price of their own choice. Hence, it is a price-taking producer..

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(b)

To determine

Whether a maker of pepsi-cola are price-takers?

(b)

Expert Solution

Answer to Problem 1P

Pepsi Company is not a price-taking producer.

Explanation of Solution

In the given case, Pepsi Company is not in a perfectly competitive market and is one of the few cola producers.

Moreover, its product differs from other cola products and hence, it is possible for the Pepsi Company to offer its product at a price of its own choice.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

(c)

To determine

Whether a seller of Zucchini is a price-taker?

(c)

Expert Solution

Answer to Problem 1P

The sellers of zucchini are price-taking producers.

Explanation of Solution

In the given case, there are numerous sellers of the product zucchini in the market and each seller has a small share in the market.

It is not possible for a single seller to affect the price of the product and hence, the sellers of zucchini are price-taking producers.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer

needs to sell goods at those prices that prevail in the market.

Answer 6

Chapter 7, Problem 1P

To determine

(a)

Whether a business of cappuccino café is a price taker?

Expert Solution

Answer to Problem 1P

The café is a price taking producer

Explanation of Solution

In the given case, the café operates in a university town where there are various similar kinds of cafés.

Here, since the café is not the only one in the market, it cannot fix a price of their own choice. Hence, it is a price-taking producer..

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

Answer 7

Chapter 7, Problem 1P

To determine

(a)

Whether a business of cappuccino café is a price taker?

Answer 8

Expert Solution

Answer to Problem 1P

The café is a price taking producer

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

In the given case, the café operates in a university town where there are various similar kinds of cafés.

Here, since the café is not the only one in the market, it cannot fix a price of their own choice. Hence, it is a price-taking producer..

Answer 13

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

Answer 14

(b)

To determine

Whether a maker of pepsi-cola are price-takers?

(b)

Expert Solution

Answer to Problem 1P

Pepsi Company is not a price-taking producer.

Explanation of Solution

In the given case, Pepsi Company is not in a perfectly competitive market and is one of the few cola producers.

Moreover, its product differs from other cola products and hence, it is possible for the Pepsi Company to offer its product at a price of its own choice.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

Answer 15

(b)

To determine

Whether a maker of pepsi-cola are price-takers?

Answer 16

(b)

Expert Solution

Answer to Problem 1P

Pepsi Company is not a price-taking producer.

Answer 17

(b)

Expert Solution

Answer 18

(b)

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

In the given case, Pepsi Company is not in a perfectly competitive market and is one of the few cola producers.

Moreover, its product differs from other cola products and hence, it is possible for the Pepsi Company to offer its product at a price of its own choice.

Answer 21

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer needs to sell goods at those prices that prevail in the market.

Answer 22

(c)

To determine

Whether a seller of Zucchini is a price-taker?

(c)

Expert Solution

Answer to Problem 1P

The sellers of zucchini are price-taking producers.

Explanation of Solution

In the given case, there are numerous sellers of the product zucchini in the market and each seller has a small share in the market.

It is not possible for a single seller to affect the price of the product and hence, the sellers of zucchini are price-taking producers.

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer

needs to sell goods at those prices that prevail in the market.

Answer 23

(c)

To determine

Whether a seller of Zucchini is a price-taker?

Answer 24

(c)

Expert Solution

Answer to Problem 1P

The sellers of zucchini are price-taking producers.

Answer 25

(c)

Expert Solution

Answer 26

(c)

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

In the given case, there are numerous sellers of the product zucchini in the market and each seller has a small share in the market.

It is not possible for a single seller to affect the price of the product and hence, the sellers of zucchini are price-taking producers.

Answer 29

Economics Concept Introduction

Introduction:

Price-Taking Producer: This refers to the producer who is one of the many producers in a competitive market and cannot set the prices of its own choice. A price-taking producer

needs to sell goods at those prices that prevail in the market.