Microeconomics: Theory and Applications with Calculus, 4e

Exercises

All exercises are available on MyEconLab; ${*}^{}=\text{answer}$ appears at the back of this book; $\mathbf{M}=\text{mathematical}$ problem.

1. Market Structures 

1. 1.1 Which market structure best describes (a) airplane manufacturing, (b) electricians in a small town, (c) farms that grow tomatoes, and (d) cable television in a city? Why?

2. Cartels 

1. 2.1 Many retail stores offer to match or beat the price offered by a rival store. Explain why firms that belong to a cartel might make this offer.

2. *2.2 A market has an inverse demand curve $p=100-2Q$[&p|=|100|-|2Q&] and four firms, each of which has a constant marginal cost of $MC=20\text{.}$[&MC|=|20.&] If the firms form a profit-maximizing cartel and agree to operate subject to the constraint that each firm will produce the ...