ECO182 - Lecture 8 Review

ECO182 - Lecture 8 Review - Questions Q: iPod and songs are...

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Unformatted text preview: Questions Q: iPod and songs are complements. You observe that Apple has inelastic demands for its products. It also has pricing power and can raise the price of iPod. Indeed, Apple raises the price of iPod. Which of the following are observed to occur ? a. Less iPod is sold, but Apples revenues go up. Less songs are sold and song prices go up. b. Less iPod is sold, but Apples revenues go up. Less songs are sold and song prices go down. c. Less iPod is sold, but Apples revenues go down. Less songs are sold and song prices go down. d. Less iPod is sold, but Apples revenues go down. Less songs are sold and song prices go down. Workers Total product Marginal product Average Product 1 20 20 20 2 15 3 36 6 4 4 What is the total product when there are two workers ? Answer: (Total product) = (average product)(workers) = 2 15 =30 30 Workers Total product Marginal product Average Product 1 20 20 20 2 15 3 36 6 4 4 What is the marginal product of the second worker ?...
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This note was uploaded on 10/10/2010 for the course ECO 182 taught by Professor Morgan during the Spring '08 term at SUNY Buffalo.

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ECO182 - Lecture 8 Review - Questions Q: iPod and songs are...

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