Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 9, Problem 17QP
To determine
Explain perfectly that competitive market exhibits productive efficiency.
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Eddie Clauer sells a wide variety of outdoor equipment and clothing. The company sells both through mail order and via the internet. Random samples of sales receipts
were studied for mail order sales and internet sales, with the total purchase being recorded for each sale. A random sample of 7 sales receipts for mail order sales
results in a mean sale amount of $81.10 with a standard deviation of $23.25. A random sample of 15 sales receipts for internet sales results in a mean sale amount of
$64.30 with a standard deviation of $28.25. Using this data, find the 90 % confidence interval for the true mean difference between the mean amount of mail order
purchases and the mean amount of internet purchases. Assume that the population variances are not equal and that the two populations are normally distributed.
Step 1 of 3: Find the critical value that should be used in constructing the confidence interval. Round your answer to three decimal places.
Chapter 9 Solutions
Microeconomics
Ch. 9.1 - Prob. 1STCh. 9.1 - Prob. 2STCh. 9.1 - Prob. 3STCh. 9.1 - Prob. 4STCh. 9.2 - Prob. 1STCh. 9.2 - Prob. 2STCh. 9.2 - Prob. 3STCh. 9.2 - Prob. 4STCh. 9.3 - Prob. 1STCh. 9.3 - Prob. 2ST
Ch. 9.3 - Prob. 3STCh. 9.3 - Prob. 4STCh. 9.4 - Prob. 1STCh. 9.4 - Prob. 2STCh. 9 - Prob. 1QPCh. 9 - Prob. 2QPCh. 9 - Prob. 3QPCh. 9 - Prob. 4QPCh. 9 - Prob. 5QPCh. 9 - Prob. 6QPCh. 9 - Prob. 7QPCh. 9 - Prob. 8QPCh. 9 - Prob. 9QPCh. 9 - Prob. 10QPCh. 9 - Prob. 11QPCh. 9 - Prob. 12QPCh. 9 - Prob. 13QPCh. 9 - Prob. 14QPCh. 9 - Prob. 15QPCh. 9 - Many plumbers charge the same price for coming to...Ch. 9 - Prob. 17QPCh. 9 - Prob. 18QPCh. 9 - Prob. 1WNGCh. 9 - Prob. 2WNGCh. 9 - According to the accompanying table, what quantity...Ch. 9 - Prob. 4WNGCh. 9 - Prob. 5WNGCh. 9 - Prob. 6WNGCh. 9 - Prob. 7WNGCh. 9 - Prob. 8WNGCh. 9 - Prob. 9WNGCh. 9 - Prob. 10WNG
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- An advertising executive claims that there is a difference in the mean household income for credit cardholders of Visa Gold and of MasterCard Gold. A random survey of 16 Visa Gold cardholders resulted in a mean household income of $75,650 with a standard deviation of $11,400. A random survey of 7 MasterCard Gold cardholders resulted in a mean household income of $68,280 with a standard deviation of $10,900. Is there enough evidence to support the executive's claim? Let μ₁ be the true mean household income for Visa Gold cardholders and μ2₂ be the true mean household income for MasterCard Gold cardholders. Use a significance level of a = 0.2 for the test. Assume that the population variances are not equal and that the two populations are normally distributed. Step 3 of 4: Determine the decision rule for rejecting the null hypothesis Ho. Round your answer to three decimal places.arrow_forwardnot use ai pleasearrow_forwardFor the two questions, use the provided Lorenz curve. Income 100% Lorenz curve If the economy's income were distributed according to the Equality line, what would the Gini coefficient be? 1 0 0.5 Infinity 80 60 60 60 10 40 If the economy's income were distributed according to the A line, how much of the economy's income is earned by the third quintile of families? 60% 40% 20% 100% 20 Equality 0 20% 40 40 A 50 60 80 100 Familiesarrow_forward
- 1. For the following utility functions, (i) calculate the MRS, (ii) show whether the MRS is constant, or diminishing, or increasing, (iii) calculate the degree of homogeneity, (iv) check the convexity of the Indifference Curve using the condition that for a function to be strict quasi-concave, it must be that f2f11-2f1f2f12+ ff22 < 0, (v) based on MRS's characteristics, draw an approximate Indifference Curve, and (vi) comment on the type of utility function. (a) U(x, y) = 3x + y (b) U(x, y)=√√x y (c) U(x, y)=√√x + y (d) U(x, y)=xy x+yarrow_forwardA 9R, where 1-b 1-b Question Two Consider the IS-LM Model. Let the IS equation be Y = (1b) is the marginal propensity to save, g is the investment sensitivity to interest rates, and A is an aggregate of exogenous variables. Let the LM equation be Y = +=R, where k and 1 are income and interest sensitivity of money demand, and Mo is real money balances. Mo k k It is given b = 0.7, g = 100, A = 252, k = 0.25, l = 200, and Mo 176. a) Utilize the given numbers to substitute the variables in the model, and then write down the IS-LM equation system in matrices form. b) Solve for the equilibrium values of Y and R using Cramer's Rule. (Note: Keep 2 digits after the decimal point.)arrow_forwardSuppose that a family's income is exactly the same as the poverty threshold. This family's income deficit would be and their ratio of income to poverty would be 130 0; 1 ○ 1 %3 030 Consider a family of four in 2008, whose poverty threshold is $22,024. If this family's total income was $16544, what would their income deficit be? Income deficit: $arrow_forward
- 3. Based on the 'Compensation Wage Differentials,' (CWD) answers the next questions: In an economy where workers only have two options in their daily lives: work in firm 1 and be at home. The next equation gives the labour supply for the firm 1, Ls¹(w) = -40 + w. a) How much is it willing to pay worker number 10 to stay at home? b) If a new firm (firm 2) is hiring in this market, and its supply of labour is Ls²(w) = -80+ w. Which firm (1 or 2) is considered an ‘uncomfortable' workplace? c) What is the CWD for the firm considered an ‘uncomfortable' workplace when it wants to hire employee number 10? d) Two industries require workers with the same characteristics (skills and experience). Industry B is recognized as having much more hazardous working conditions than Industry A. What is the CWD between the two industries? Industry A Industry B Demand Supply 5 10 15 20 25 5 10 15 20 Labor (Hours) Labor (Hours) Demand Supplyarrow_forwardWhat percentage of the total population is categorized as belonging to the second quintile? Give your responses as whole numbers. The data in the table characterizes the income distribution for a country. Income category first quintile Share of income Cumulative share of (%) income (%) 7.0 second quintile 15.0 22.0 third quintile 45.0 fourth quintile 29.0 fifth quintile 26.0 percentage of population in second quintile: % What percentage of the total income for the country is earned by the third quintile? percentage earned by the third quintile: % What is the cumulative share of income earned by the poorest 80% of the population? percentage earned by the poorest 80%: ୪୧arrow_forward1. Comment on the following ideas. You can say if they are true, false, or uncertain and argue your answers. a) Producers in competitive markets have incentives to reduce the quality of their products and the safety of their workplaces and to cheat consumers and workers generally. b) Labour unions raise the wages of all workers. c) Increasing the minimum wage will reduce employment in every type of market d) In a monopoly market, the demand for good Q shifts to the left, declining Q's price. However, because the monopoly short-run equilibrium is different from the perfect competition equilibrium, its demand for labour is unaffected.arrow_forward
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