Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 2, Problem 1RQ
To determine
Different systems of economy.
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1. Rio live in a town with 300 adults and 200 children, and he is thinking about putting
on a play to entertain your neighbors and make some money. A play has a fixed cost
of $2,000 except all cost like maintenance costs until two years, but selling an extra
ticket has zero marginal cost. Here are the demand schedules for his two types of
customer:
Price
Adults
Children
$10
9.
100
8
200
7
300
300
300
100
4
300
200
300
200
300
200
1
300
200
300
200
c. Suppose next year government imposes tax equals $4 for selling an every extra
ticket, what price would he charge for an adult ticket? For a child's ticket? How
much the profit? Assume the law prohibiting him from charging different prices
to different customers doesn't exist. (Hint: fixed cost doesn't include)
Suppose, under license from Apple, a factory in China buys all the components for an iPhone from multiple manufacturers for $150 They assemble the iPhone and
sell it to Apple for $350. Apple then sells the phone to customers for $699.
How much value does Apple add during their step in the production process?
Ⓒ$1.50
1200
O $349
O $350
Once upon a time on the tiny island of Nor, all of the people were involved in their daily labor - knocking coconuts out of trees, carrying them to a pick-up point, and delivering them from the pick-up point to the market. All of the people, except Frick and Frack, that is. Frick and Frack were not feeling well on this day and were sitting, listless, under a palm tree. As they sat, Frick was, almost subconsciously, picking up palm leaves and weaving them together, in and out, in and out. Frack glanced down at Frick's work and asked, "What are you makin' there?" Frick looked down and puzzled, "I'm not really making nothing." But, actually, he had made something. It was a small mat. Frack said, "Keep going," and, pretty soon, the mat was about a square foot. The two of them pondered what could be done with this collection of palm leaves when, suddenly, Frack said, "Keep going, but start weaving the leaves tighter." As Frick progressed, the sides of the mat began to turn up, and…
Chapter 2 Solutions
Microeconomics
Ch. 2.2 - Prob. 1QQCh. 2.2 - Prob. 2QQCh. 2.2 - Prob. 3QQCh. 2.2 - Prob. 4QQCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQ
Ch. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - Prob. 7RQCh. 2 - Prob. 8RQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4P
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- -- 49. Table 11-4 There are four homes along Belmont Circle, which surrounds a small plot of land. The land currently has no trees, and the 4 homeowners - Adams, Benitez, Chen, and Davis -- are considering the idea of contributing to a pool of money that will be used to plant up to 4 trees. The table represents their willingness to pay, that is, the maximum amount that each homeowner is willing to contribute toward each tree. Adams Chen $100 First tree Second tree Third tree Fourth tree A. 3 B. 2 C. 1 50 D. 4 20 10 Benitez $115 110 100 50 $120 110 80 40 Davis $90 Refer to Table 11-4. Suppose the cost to plant each tree is $90. How many trees should be planted to maximize the total surplus of the four homeowners? 50 30 Oarrow_forwardSuppose that Samsung’s production costs are the same in both China and India. Also suppose that Samsung can produce cell phones in China for an average cost of $10 per phone for 300 million phones, $12 per phone for 200 million phones, and $15 per phone for 100 million phones. If customers in India demand 100 million phones and customers in China demand 200 million phones, Samsung’s lowest-cost option is to A. produce 150 million phones in India for Indian demand and 50 million to export to China and produce 150 million phones in China for Chinese demand. B. produce 100 million phones in India for Indian demand and produce 200 million phones in China for Chinese demand. C. produce phones only in India and export phones to China. D. produce phones only in China and export phones to India.arrow_forward18. How prices allocate resources Suppose that there are three plots of mountain resort land available for sale in Interlaken and six potential buyers, each interested in purchasing one plot. Assume that all of the plots are basically indistinguishable and that the minimum selling price of each is $745,000. The following table lists each potential buyer's willingness and ability to purchase a plot of land. Person Clancy Eileen Hubert Kate Manuel Poornima Willingness and Ability to Purchase (Dollars) 900,000 810,000 770,000 720,000 690,000 680,000arrow_forward
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