Figure 1 shows the supply curve of DVDs and the market price of a DVD. 1. What

Question:

Figure 1 shows the supply curve of DVDs and the market price of a DVD.

FIGURE 1 Price (dollars per DVD) 20 15 10 5 0 10 S Market price 20 30 40 Quantity (DVDs per day)

1. What is the minimum supply price of the 20th DVD? Calculate the marginal cost of the 10th DVD and the producer surplus on the 10th DVD.

2. What is the quantity of DVDs sold? Calculate the producer surplus, the total revenue from the DVDs sold, and the cost of producing the DVDs sold.

3. If the price of a DVD falls to $10, what is the change in producer surplus?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Foundations Of Economics

ISBN: 9780134486819

8th Edition

Authors: Robin Bade, Michael Parkin

See More Books

Question Posted: Dec 08, 2023 08:02 AM

See More Questions

Solve Problem 8.62 assuming that the wedge is to be forced under the machine base at B instead of A. PROBLEM 8.62 A 5° wedge is to be forced under a 1400-lb machine base at A. Knowing that the...
The figure below shows the supply curve for tennis balls, S 1, for Drop Volley tennis, a producer of tennis equipment. Use the figure and the table below to give your answers to the following...
Dr. Mark Day, a very charitable dentist, donates his time and money to several local charities. During 2022, he gave $6,000 in cash to Habitat for Humanity and stock worth $9,000 to his church. His...
On your first day as a intern at Tri-Star Management Incorporated the CEO asks you to analyze the following information pertaining to two common stock investments, Tech.com Incorporated and Sam's...
Barnett Corporation sold a $500,000, 7 percent bond issue on January 1, 2011. The bonds pay interest each June 30 and December 31 and mature 10 years from January 1, 2011. For comparative study and...
On January 1, 2010, Phelps Company purchased an 85% interest in Sloane Company for $955,000 when the retained earnings of Sloane Company were $150,000. The difference between implied and book value...
Extreme Machine manufactures machines and parts for various industries; they have an office in Youngstown, Ohio. Avery Dennison manufactures and sells labels from a plant in Mentor, Ohio. They use...
Britains Health and Safety Executive (HSE) is a national regulatory body overseeing workplace health and safety. In its 2007 performance report, HSE reported the following statistics: 241 workers...
Activity 1 Response: Measure the temperature of the environment (ambient temperature), the human body (both forehead and under the tongue), and two other objects in the room. Record this information...
The airlines change prices from day to day. For example, the fare on one Delta flight from New York to Los Angeles jumped from $755 to $1,143 from a Friday to Saturday in April, then fell to $718 on...
Why do you think restaurants have different reservation policies, and why might each restaurant be using an efficient allocation method?
In recent years, as described in this chapter, both the United States and Greece have experienced increases in government debt and a significant economic downturn. In what ways were the two...
If two forces F and F act on an object of mass m to accelerate the object to the -x direction, which of the following figures represent the correct FBD? y F2 X c) mg F2 E UN N F UN F y X4 y b) F2 IN...
1.) Import duties on leather footwear. What are the differences in the duties on shoes of different value, material composition, and quantity. Please explain the reasoning behind these differences....
Consider the system of Figure P2a, a. Determine a nonlinear state model for the system with x=y and x = 1 R(s) *Q (%) Fos Figure P2a b. Evaluate equilibrium with = 0, and determine a linearized model...
Using the Aggregate Demand/ Aggregate Supply Model, explain how lowering the reserve ratio affects the economy.
Explain LIFO.? What is the purpose of LIFO? Use the Thor Industries Case Document to fill in the highlighted cells for 2008. Thor and Winnebago use the LIFO inventory method and Skyline uses the FIFO...
What are the four types of cash outflows from operations?
Write the binomial probability in words. Then, use a continuity correction to convert the binomial probability to a normal distribution probability. P(x 110)
How does demand-pull inflation begin?
After you have studied Economics in the News, answer the following questions. a. What happened to the foreign exchange value of the U.S. dollar in July and August 2014? b. What could the Bank of...
Some events occur and the economy is expected to experience inflation. What might those events have been? Describe their initial effects and what happens as an expected inflation proceeds. The...
How has the rise of advertising and commercial culture in mass media affected our society?
Visit Cisco's website at www.cisco.com and find the company's code of conduct. Describe three specific examples of things you could do that would violate these provisions; then list at least three...
What is an obsession? Do you think traveling can be a good obsession? Why

Figure 1 shows the supply curve of DVDs and the market price of a DVD. 1. What

Question:

FIGURE 1 Price (dollars per DVD) 20 15 10 5 0 10 S Market price 20 30 40 Quantity (DVDs per day)

Step by Step Answer:

1 The minimum supply price of the 20th DVD is the marginal cost of the 20th DVD which is 15 Figure 2 ...View the full answer

Foundations Of Economics

Students also viewed these Business questions