Suppose a company called Clayton N. Inc. is selling a product known as "Iris' Giant Birthday Candles". The company has the following table: qP TR TC Profit MR MC AProfit 5 0 25 1 25 2 25 3 25 4 25 01 0 2 5 25 80 What is the quantity produced? 3 10 05 30 20 10
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- What is an externality?How is intellectual property different from other property?Suppose a company called Clayton N. Inc. is selling a product known as "Iris' Giant Birthday Candles". The company has the following table: q P TR TC Profit MR MC AProfit 0 25 5--------- 1 25 10 2 25 30 3 25 10 4 25 20 5 25 80 What is the quantity produced? Group of answer choices 1 2 3 5
- 20-3. Lightweight personal locator beacons are now available to hikers that make it easier for the Forest Service;s rescue teams to locate those lost or in trouble in the wilderness. How will this affect the costs that the Forest Service incurs?500 450 The graph on the right may help in answering question 25 400 350 300 250 200 150 100 50 O 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 Quantity Demand MC Exter nality MC private MC Social A competitive tire manufacturing industry spews emissions into the air at47 per tire a marginal cost of 1.5-q, where q is the quantity of tires produced per month (in thousands). The industry marginal cost, excluding the cost of emissions (private marginal cost), is 4 + 4•q, expressed in $ per tire. The inverse demand curve for tires is p = 480 - 3-q, also expressed in $ per tire. In order to achieve the socially efficient level of tire production, which takes into account the optimal level of air pollution, the government levies a tax on the industry. What is the efficient pollution tax? $84 per tire $101 per tire $152 per tire PriceA large share of the world supply of diamondscomes from Russia and South Africa. Suppose thatthe marginal cost of mining diamonds is constant at$1,000 per diamond and the demand for diamonds isdescribed by the following schedule:Price Quantity$8,000 5,000 diamonds7,000 6,0006,000 7,0005,000 8,0004,000 9,0003,000 10,0002,000 11,0001,000 12,000a. If there were many suppliers of diamonds, whatwould be the price and quantity?b. If there were only one supplier of diamonds, whatwould be the price and quantity?c. If Russia and South Africa formed a cartel, whatwould be the price and quantity? If the countriessplit the market evenly, what would be SouthAfrica’s production and profit? What wouldhappen to South Africa’s profit if it increased itsproduction by 1,000 while Russia stuck to thecartel agreement?d. Use your answers to part (c) to explain why cartelagreements are often not successful.
- 6-It is illegal and unethical to download and install a pirated copy of Microsoft Office on your own laptop. Select one : True O Falsewarten population manghe ecosystem's Carrying capacity? 6. We have the following data for Demand Price and Costs for our product. Quantity Demand Price Costs 300 100 $21.63 $35.35 $5040.00 $2347.67 500 $17.25 $7481.67 1000 $12.70 $12469.67 1500 $10.26 $16196.00 We have reason to believe that the Demand Price is a power (exponential) function of some kind. Our Cost function is close to linear, but we expect, from some market analysis, that it is in fact quadratic. Approximate this data with a Demand Price function and a Cost function. Explain how confident you are; that is, how much error do you think is reasonable in this type of scenario? 区Table 9.1 9 TFC TVC TC MC AVC ATC 0 $50 $0 $50 -- -- 1 50 20 70 20 20 70 2 50 30 80 10 15 40 3 50 45 95 15 15 31.67 4 50 62 112 17 15.50 28 5 50 90 140 28 18 28 6 50 132 182 42 22 30.33 7 50 186 236 54 26.57 33.71 Refer to Table 9.1. If the market price is $42, then for this firm to maximize profits it should produce. Ofive; $70 O six; $70 O six $120 O seven; $58 units of output and its profits will be
- A publisher faces the following demand schedule for the next novel from one of its popular authors:Price Quantity Demanded100 090 100,00080 200,00070 300,00060 400,00050 500,00040 600,000 530 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishing the book is aconstant $30 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity would a profitmaximizing publisher choose? What price would it charge? b. Compute marginal revenue. (Recall that MR=∆TR/∆Q.) How does marginal revenue compare tothe price? Explain. c. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantity do themarginal-revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author was paid $3 million instead of $2 million to write the book, how would this affectthe publisher’s decision regarding the price…0.90 O85 ATC 0.80 0.75 0.70 0.65 0.80 0.55 050 0.45 MR 0.40 50 100 150 200 250 300 350 400 What will be the profit for a monopolist? O a. $10 Oh$20 OC S15 O d. $30If the transit system were regulated to provide the most allocatively efficient quantity of output, what output would it supply and what price would it charge? What subsidy would be IIECESSEIIY to insure this efficient provision of transit services?
