Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 11.A, Problem 3E
(a)
To determine
The practice of transfer
(b)
To determine
The change in the demand for the micro processors.
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The Lead Zeppelin Company produces powered and steerable lighter-than-air craft. The company’s airships are specially lined and are therefore safer than normal dirigibles. The table below shows the weekly production of dirigibles, along with the associated Average Cost and Total Revenue figures (the Average Cost and Total Revenue figures are actually in thousands of dollars, so the $15 represents $15,000, but we have left off the zeros to save space).
Quantity
Average Cost
Total Cost
Total Revenue
0
--
0
$0
1
$15
15
$10
2
$9
18
$20
3
$8
24
$30
4
$8.50
34
$40
5
$9
45
$50
6
$10
60
$60
7
$12
84
$70
The Lead Zeppelin Company has decided that it will produce at least 1 dirigible. Now the question becomes, how many more dirigibles should it produce to make as much profit as possible?
Use the profit-maximizing rule to explain how many dirigibles the Lead Zeppelin Company should produce to…
Douglas Fur is a small manufacturer of fake-fur boots in Mississauga. The following table shows the company's total cost of production at various production quantities.
Joe decided to quit his computer-programming job (where he was earning $48,000 per year) to start his own software
business. For his office, Joe will use a two-story building that he bought 7 years ago for $250,000. The building is located
in Hyde Park (South side of Chicago) in an area where a lot of recent construction has taken place, so the market price for
the land has increased. You are given the following information about the costs of his firm:
Joe will pay himself a wage
of:
Maintenance and insurance
Revenue
Land's salvage (resale) value
Risk-free interest rate
$18,000
per year
$30,240
per year
$96,000
per year
$395,000
4.75%
annually
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Chapter 11 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
Ch. 11.A - Prob. 3ECh. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQ
Ch. 11 - Prob. 10RQCh. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17E
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