All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
microeconomics
Questions and Answers of
Microeconomics
Regardless of the sport, the owners of professional sports teams are local monopolists. Many people argue that increasing attendance (and revenue) at sporting events should be a key objective of any
A 2011 report by the management consulting firm O'Rourke Group Partners indicated that a generic \$14 polo shirt sold in Canada and made in Bangladesh actually costs a retailer only \(\$ 5.67\)
Introduced in the nineteenth century, bicycles are the principal means of transportation in many parts of the world. Suppose there is a \(60 \%\) markup on the marginal cost of a bicycle tire that
Suppose that a monopoly faces the short-run cost function \(C=1,000+2 Q^{2}\) and the inverse demand curve \(p=500-0.5 Q\). How does charging the monopoly a per-unit tax of \(t=100\) affect the
A monopoly with a constant marginal cost \(m\) has a profit-maximizing price of \(p_{1}\). It faces a constant elasticity demand curve with elasticity . After the government applies a specific tax of
Consider the inverse demand curve \(p=210-3 Q\) and the cost function \(C=100+2 Q^{2}\). If the market were competitive, calculate the incidence of a specific tax, \(t=7\), that would fall on
In the Application "Botox Patent Monopoly," consumer surplus, triangle \(A\), equals the deadweight loss, triangle \(C\). Show that this equality is a result of the linear demand and constant
Once the copyright runs out on a book or musical composition, the work can legally be posted on the Internet for anyone to download. U.S. copyright law protects the monopoly for 95 years after the
Electric utilities are often natural monopolies. Due to the extensive and costly infrastructure needed to generate, transmit, and deliver electricity, one firm can produce the total output of the
Based on the information in the Application "Botox Patent Monopoly," what would happen to the optimum price and quantity if the government had set a price ceiling of \(\$ 200\) per vial of Botox?
International trade benefits countries by increasing total production and the quantity of goods and services available to consumers. However, not everyone wins. While trade creates new jobs for firms
A firm is considering selling a new good at an introductory price that is less than the monopoly price. By doing so, it hopes to create a critical mass of users and benefit from an increased future
Does the Challenge Solution change if the entry of the generic causes a parallel shift to the left of the patent monopoly's linear demand curve?
A patent grants the holder the exclusive right to use or sell an invention for the duration of the term of the patent. The Agreement on Trade Related Aspects of Intellectual Property Rights was
How does welfare change if the movie theater described in Table 12.1 goes from charging a single price to perfectly price discriminating? Table 12.1 A Theater's Profit Based on the Pricing Method
I estimated that Warner faced inverse demand functions for its Harry Potter and the Deathly Hallows, Part 2 DVD of \(p_{A}=57-4.8 Q_{A}\) in the United States and \(p_{B}=77-19 Q_{B}\) in the United
What U.S. and U.K. elasticities did Warner Brothers believe it faced for its Harry Potter and the Deathly Hallows, Part 2 DVD? Check that these elasticities are consistent with the observed price
A monopoly book publisher with a constant marginal cost (and average cost) of \(M C=1\) sells a novel in only two countries and faces a linear inverse demand curve of \(p_{1}=6-\frac{1}{2} Q_{1}\) in
A firm that sells word processing and spreadsheet programs has four potential customers with the following reservation prices:The firm's cost of production is zero, so maximizing its profit is
Many governments provide social housing to families with low or modest incomes. The rent charged for an accommodation is set according to the renter's income and rent increases are limited to keep it
Australian citizens aged 60 or over who are not working more than 20 hours per week are eligible for a free Seniors Card. Issued by individual state governments, the card provides government
The European Youth Card offers discounts on culture, travel, accommodation, shopping, and services in most European countries. Anyone under the age of 30 or 26 , depending on the country, can
Goods often sell for different prices in different countries. Suppose the inverse demand curves in two countries are \(p_{1}=40-3 Q_{1}\) and \(p_{2}=90-2 Q_{2}\), and a monopoly produces at constant
Renting an economy car in Munich and Berlin costs about the same, €19 per day. However, the rental price for a full size car is \(€ 10\) euros per day more in Munich (€36) than in Berlin
Suppose that the cost function curve for a natural monopoly is \(C(Q)=48+6 Q\) and the inverse demand function it faces is \(p=38-2 Q\). What are the firm's maximum profits if it cannot price
Founded in 1998, eBid is one of the oldest and largest online auction websites. It operates in 23 countries, has over two million registered users, and offers a huge array of items for auction. Does
Group price discrimination (also called third-degree price discrimination) is the most common type of price discrimination. Under it, a firm charges each group of customers a different price, but it
There are two distinct groups of customers in the market for a firm's product. Their inverse demand curves are \(p_{1}=5-Q_{1}\) and \(p_{2}=10-Q_{2}\). The monopoly's constant marginal cost of
Does a monopoly's ability to price discriminate between two groups of consumers depend on its marginal cost curve? To answer this, compare the situation for the monopolist when it engages in group
Suppose a monopoly sells its product in two countries and resale is not possible. The inverse demand curves in the two countries are \(p_{1}=200-10 Q_{1}\) and \(p_{2}=122-5 Q_{2}\). The marginal
In Solved Problem 12.4, calculate the firm's profit with and without a ban against shipments between the two countries.Data From Solved Problem 12.4:-A monopoly book publisher with a constant
Limited-time offers are a powerful marketing tool. Good ones are billed as the "best ever," create a sense of urgency (for example, "while supplies last"), provide incentives (for example, free
The price of a cappuccino at any given coffee shop can be more than double the price of a regular coffee with milk that is in a container of the same size. The basic ingredients of both products are
Under a single-rate electricity tariff for households and small businesses in Australia, a flat usage rate is charged for "blocks" of electricity consumed. The rate for the first block is higher than
Access to certain golf courses such as Golf de Morfontaine, north of Paris, France, is restricted to members and their guests. In addition to the membership fee, there is a charge (greens fee) to
A tennis club with a good reputation for providing high-quality programs is considering changing the way it charges its customers for lessons. Elena, one of those customers, is keen on improving her
As described in the Application "iTunes for a Song," Shiller and Waldfogel (2011) estimated that if iTunes used two-part pricing, charging an annual access fee and a low price per song, it would
Some people purchase expensive water conditioners to reduce the mineral content in their water, enhance the effectiveness of soaps and detergents, and reduce deposits in plumbing systems. A
An Indian restaurant has four potential customers with the following reservation prices:a. Calculate the profit-maximizing prices and the revenue when the firm prices each course separately.b. Is the
Using a graph similar to Figure 12.7, explain why a firm might not want to spend \(A\) on advertising, even though it shifts the firm's demand curve to the right.Figure 12.7:- p. $ per unit P2 P B
Google AdWords is a way for businesses to promote their products online; for example, when people are searching for resort packages, tours, or flights for a trip or vacation. Displaying products to
How might a natural disaster, violence, rising crime rates, or health alerts affect the optimal amount of advertising a tourism business chooses to purchase for the region affected, and why? Use a
When it is first released, a novel by a best-selling author is typically published as a hardcover book with a paper dust jacket covering it, and the paper used to print it is of a relatively high
Derive United Airlines’ best-response function if its marginal cost falls to \(\$ 99\) per unit due to a government subsidy. Given that American's marginal cost does not change, what is the new
Intel and Advanced Micro Devices (AMD) are the only two firms that produce central processing units (CPUs)-the brains-for personal computers. Both because the products differ physically and because
Which market structure best describes (a) mobile network operators in a country, (b) plumbers in a small town, (c) farms that grow mangoes, and (d) city waste management? Why?
As the aggregate profit of a cartel can exceed the combined profits of the same firms acting independently, firms have an incentive to form cartels and behave like a monopoly. However, cartels often
Suppose there are \(n\) firms selling a homogeneous product at a constant marginal cost, \(m=5\), in a Cournot market. The inverse market demand curve is \(p=20-Q\), where \(Q=n q\). What is the
Duopoly quantity-setting firms face the inverse market demand curve, \(p=100-5 Q\), where \(Q=q_{1}+q_{2}\). Each firm has a constant marginal cost of 10 per unit.a. What is the Nash-Cournot
Instead of two firms, as in Question 4.1, three firms now face the inverse market demand curve, \(p=100-5 Q\), where \(Q=q_{1}+q_{2}+q_{3}\), and each of the firms has a constant marginal cost of 10
Solved Problem 13.4 shows that a monopolistically competitive firm maximizes its profit where it is operating at less than full capacity. Does this result depend upon whether firms produce identical
The national government and some state governments in India provide incentives to entice new business ventures for less developed areas of the country to increase employment. Subsidies may be offered
Many countries provide funding for small companies to start or expand their businesses. In the European Union, subsidies take the form of grants, loans, and guarantees. In Question 4.1, duopoly
Suppose there are two firms, each headquartered in a different country, that are competing in the world market for business aircraft. The inverse market demand curve is \(p=1-Q\), where
Maureen loves apple pie à la mode (a slice of pie with a scoop of vanilla ice cream on top) but she doesn't like apple pie by itself or vanilla ice cream by itself (panel b of Figure 4.4). That is,
Suppose that the job in Question 5.5 that pays \(w^{*}\) and has no restriction on hours is the higher-paying job. How do Jerome's budget constraint and behavior change?Data From Question 5.5:-Jerome
Does the marginal rate of technical substitution vary along the isoquant for the firm that produced potato salad using Idaho and Maine potatoes? What is the MRTS at each point along the isoquant?
China, Japan, and South Korea have the top three shipbuilding industries in the world. Each of these countries also has a vibrant tourism industry. Of the two, which industry has the longer short
If the marginal product of labor is 2 units of output per day per worker for the first five workers and 0 units of output for the sixth worker onward, draw the total product curve, the average
Suppose that the production function is \(q=L^{0.75} K^{0.25}\).a. What is the average product of labor, holding capital fixed at \(\bar{K}\) ?b. What is the marginal product of labor? Calculate how
What is the law of diminishing marginal returns? Will a firm experience diminishing marginal returns in the short run if its production function is:a. \(q=K+L\) ?b. \(q=K L\) ?c. \(q=K L^{0.5}\) ?
Suppose that a firm cannot substitute capital for labor in production, and to produce every two units of output, it must use one unit of capital and two units of labor. Draw the isoquants for this
Suppose that capital and labor are perfect substitutes in production, and a firm is presently using two units of capital and two units of labor to produce four units of output. What is the firm's
Under what conditions do the following production functions exhibit decreasing, constant, or increasing returns to scale?a. \(q=L+K\)b. \(q=L^{a} K^{b}\)c. \(q=L+L^{a} K^{b}+K\)
What are returns to scale? Under what conditions (that is, for what values of the parameters \(a\) and \(b)\) does the Cobb-Douglas production function, \(q=K^{a} L^{b}\), exhibit constant and
The Application "Returns to Scale in Various Industries" provides estimated parameter values for the Cobb-Douglas production function, \(q=L^{a} K^{b}\), for firms in various industries. Use the
If a new type of capital is introduced into a production process such that a firm can use fewer workers and still produce the same level of output, what type of technological progress is this?
Different firms respond to recessions in different ways. Some will reduce their workforce and produce less in response to a fall in the demand for their product. Others may continue to produce at
Meredith's firm sends her to a conference for managers and has paid her registration fee. Included in the registration fee is free admission to a class on how to price derivative securities such as
Use the tangency rule to determine the cost-minimizing bundles of labor and capital for a general Cobb-Douglas production function, \(q=A L^{a} K^{b}\), and for the specific beer production function
What is the long-run cost function for a fixed-proportions production function (Chapter 6) when it takes one unit of labor and one unit of capital to produce one unit of output? Describe the long-run
The Danish company Maersk Line is the largest shipping container company in the world, with \(15-16 \%\) of the global container market. According to an article in Shipping Watch (Kristiansen, 2012),
Erik is under contract with a textbook publisher to provide interesting and current examples to reinforce key theoretical concepts. He makes \(€ 50\) per hour for doing this work. Erik also wants
The only variable input a janitorial service firm uses to clean offices is workers who are paid a wage, \(w\), of \(\$ 8\) an hour. Each worker can clean four offices in an hour. Use math to
A firm has the cost curve \(C(q)=100+150 q-\) \(46 q^{2}+5 q^{3}\). What are the equations of the firm's marginal cost, average variable cost, and average cost curves? What are the minimum values of
A firm in Saudi Arabia uses capital and labor in its production process. The hourly cost of labor is SR30 and the initial rental rate of capital is SR60 per hour. What is the firm's isocost line? How
Canada removed all duties and quotas on imports from Bangladesh in 2003. Since that time, Bangladesh has become the second largest source (after India) of Canadian merchandise imports from South
A firm is looking to locate its production facilities in one of two countries. The wage rate in Country 1 is 10 and the cost of capital is also 10 . The wage rate in Country 2 is \(20 \%\) higher,
While processes differ somewhat among the three main manufacturers of cricket balls in international matches, all top-quality cricket balls are handcrafted to exacting specifications and standards.
Governments may use, and have used, wage subsidies to reduce unemployment in times of economic recession. For example, from January to August 2009, Mexico provided wage subsidies to certain firms in
If a firm's long-run average cost function is \(A C(q)=2 / q\), what happens to average cost as \(q\) increases? What is this relationship between average cost and returns to scale called? If the
Suppose that a firm's learning curve-that is, the relationship between its average cost, \(A C\), and cumulative output, \(Q\)-is \(A C=10+2 Q^{a}\), where \(a \leq 0\). If \(a=0\) and cumulative
According to Haskel and Sadun (2012), the United Kingdom started regulating the size of grocery stores in the early 1990s, and today the average size of a typical U.K. grocery store is roughly half
The harvesting of many crops can be done manually or by using a combination of machines and labor. Suppose that a crew of 15 workers using one machine produces as much output as a crew of 25 workers.
Divit enjoys watching team sports and considers tickets to kabaddi and badminton games to be perfect substitutes. Show his preference map. What is his utility function?
Whenever Aliza buys a flashlight, she also always buys exactly two batteries along with it. Any more than two batteries will serve no purpose, because she will not be able to use them in the
State governments in India levy a value-added tax on the sale of goods. The rate of this sales tax varies by type of good and by state. In Maharashtra, the general rate of sales tax is \(12.5 \%\),
Suppose that, to support domestic employment, the government imposes a \(33.3 \%\) tariff on imports of clothing. Fareeha spends ₹8,000 on dresses each month. Before the tariff, the price of a
Give as many reasons as you can why we believe that indifference curves are convex and explain.
Does the utility function V(Z, B) = α + [U(Z, B)]2 give the same ordering of bundles as does U(Z, B)? it, they are less sensitive to price changes and hence less likely to trade than would be
What is the effect of a quota of 13 thousand gallons of water per month on the opportunity set of the consumer in Solved Problem 4.2?Data From Solved Problem 4.2:-Water rationing is common during
Suppose that consumers in Bangladesh pay twice as much per unit for mangoes as they pay for bananas, whereas consumers in Indonesia pay half as much for mangoes as they pay for bananas. Assuming that
Under a new Australian law, large foreign businesses are required to register with the Australian Taxation Office to collect the goods and services \(\operatorname{tax}\) (GST, a \(10 \%\)
The household saving rate in Poland is low relative to other OECD countries, and Poland's population is aging. In 2016, the Polish government announced significant reforms to its pension system to
On their weekly visits to a local restaurant, Bram and Mila usually buy one slice of appeltaart (Dutch apple pie) to share and two cups of coffee each. However, the restaurant offers a special
Daniela enjoys eating cabbage rolls and often has them with her meals. She also likes polenta, and while making it, she uses the recipe that her grandmother and mother used. Daniela views cabbage
A dry spell in Kenya reduced the water level at the Ndakaini Dam in Kenya by \(75 \%\) of its capacity in April 2017, resulting in water rationing in Nairobi and calls for the public to use water
Studies put the cost of raising a child up to the age of 18 at about \(€ 9,000\) per year, so when a child is born, parents may have to make some sacrifices. Before having their first child, Ivan
Under the Healthy Start scheme, low-income women in the United Kingdom who are pregnant or have a child under 4 years of age can get free vouchers every week to spend on milk, fruit and vegetables,
Under the Healthy Start scheme, low-income women in the United Kingdom who are pregnant or have a child under 4 years of age can get free vouchers every week to spend on milk, fruit and vegetables,
Showing 500 - 600
of 1750
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last