ECON 2106 HW 3 Solutions

ECON 2106 HW 3 Solutions - TRANDEL ECON HW 3 Answers...

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TRANDEL ECON HW 3 Answers (graphs were drawn in later) 1. 150,000 2. a) on attached graph b)on attached graph c) 5 d) 115 e) on attached graph f) as new producers enter the market, price will fall g) $32 h) below $32 3. a) P=8 Q=260,000 b) number of firms increase c) d) number of firms will decrease e) the market price will decrease f) P=6.50 Q=300,000 g) h) Price goes down; number of firms goes down and then eventually price beings to rise 4. A price ceiling must have been imposed forcing the two companies to charge a lower price than the equilibrium
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5. a) Units Price Marginal Revenue 2 16.00 3 15.15 13.45 4 14.35 12.05 5 13.60 10.60 6 12.90 9.40 7 12.25 8.35 8 11.65 7.45 9 11.10 6.70 b) 8 units c) only if price exceeds the marginal cost 6. a) Table 1 Table 2 Q P TR MR q P TR MR 1 72 72 72 1 53 53 53 2 65 130 58 2 47 94 41 3 58 174 44 3 41 123 29 4 51 204 30 4 35 140 17 5 44 220 16 5 29 145 5 6 37 222 2 6 23 138 -7 7 30 210 -12 7 17 119 -19 b) 5 units at $44 c) see attached graph d) see attached graph
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This homework help was uploaded on 04/05/2008 for the course ECON 2106 taught by Professor Trandel during the Spring '07 term at UGA.

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ECON 2106 HW 3 Solutions - TRANDEL ECON HW 3 Answers...

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