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Answers to chapter 9

Answers to chapter 9 - Solutions to End-of-Chapter...

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Solutions to End-of-Chapter Exercises Chapter 9 [24] Section 9.1 [24.1]: Preview of the Four Market Structures 1.1 price, quantity sold 1.2 horizontal 1.3 market 1.4 negatively sloped Section 9.2 [24.2]: The Firm's Short-run Output Decision 2.1 total revenue, economic cost 2.2 explicit, implicit 2.3 price 2.4 price, marginal cost 2.5 decrease, increase 2.6 40, is 2.7 average total cost, zero 2.8 price, marginal cost 2.9 a. The worker's tardiness increased the firm's profit. b. The firm should produce fewer deliveries, since P < MC. 2.10 a. Labor Cost: 240, 264, 288, 312, 336, 360 Material Cost: 5, 29, 41, 47, 50, 52 Total Cost: 246, 295, 331, 361, 388, 414 Marginal Cost: --, 2.00, 5.00, 9.00, 13.00 b. The profit maximizing output is 50 scarves (P = MC = $9.00). Section 9.3 [24.3]: The Firm's Shut-Down Decision 3.1 total revenue, variable cost 3.2 operate, total revenue, variable cost 3.3 minimum average variable cost 3.4 operate, price, average variable cost; exit, average total cost, price 3.5 0.72/bushel 3.6 a. The break-even price increases while the shut-down price is unchanged.
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