{"id":426607,"date":"2018-09-21T16:37:47","date_gmt":"2018-09-21T16:37:47","guid":{"rendered":"https:\/\/acemystudy.com\/?p=3599"},"modified":"2018-10-24T08:51:01","modified_gmt":"2018-10-24T08:51:01","slug":"economics-question-and-answer","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/economics-question-and-answer\/","title":{"rendered":"Economics question and answer"},"content":{"rendered":"<p><strong>Section I <\/strong><\/p>\n<p>Elixir Spring produces a unique and highly prized miner- al water. The firm\u2019s total fixed cost is $5,000 a day, and its marginal cost is zero. The table shows the demand schedule for Elixir water.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Question 1 (1 point)<\/strong><\/p>\n<p>On a graph, show the demand for Elixir water and Elixir Spring\u2019s marginal revenue curve. What are Elixir\u2019s profit-maximizing price, output, and economic profit?<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Question 2 (1 point)<\/strong><\/p>\n<p>Compare Elixir\u2019s profit maximizing price with the marginal cost of producing the profit-maximizing output. At the profit-maximizing price, is the demand for Elixir water inelastic or elastic?<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Section II<\/strong><\/p>\n<p><strong>Question 3 (1.5 points)<\/strong><\/p>\n<p>Which of the following items are sold by firms in monopolistic competition? Explain your selections.<\/p>\n<ol>\n<li>Cable TV service<\/li>\n<li>Athletic shoes<\/li>\n<li>Soda<\/li>\n<li>Toothbrushes<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p><strong>Question 4 (1.5 points)<\/strong><\/p>\n<p>Use figure below, which shows the demand curve, marginal revenue curve, and cost curves of Lite and Kool, Inc., a producer of running shoes in monopolistic competition<\/p>\n<p>&nbsp;<\/p>\n<p>In the short run, what quantity does Lite and Kool produce, what price does it charge, and does it make an economic profit?<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Section I Elixir Spring produces a unique and highly prized miner- al water. The firm\u2019s total fixed cost is $5,000 a day, and its marginal cost is zero. The table shows the demand schedule for Elixir water. \u00a0 Question 1 <a href=\"https:\/\/www.benedictsol.com\/blogs\/economics-question-and-answer\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-426607","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/426607","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=426607"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/426607\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=426607"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=426607"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=426607"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}