Ab224: microeconomics unit 9 assignment – revised

AB224 KULogoUnit 9 Assignment Template:

Name:                       

Course Number:    

Section Number:   

Unit Number:           – 9

Date:                                    

 

———————————- General Instructions for all Assignments———————————–

1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format:

Course number_section number_LAST_FIRST_ unit number

 

2.  At the top of the template, insert the appropriate information: Your Name, Course Number, Section Number and Date

 

3. Insert your answers below, or in the appropriate space provided for in the question.  Your answers should follow the APA format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double spaced, in Times New Roman, 12-point, black font).  Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions.

 

4.  Provide a list of references at the end of the last page of your assignment.

 

5. Upload the completed assignment to the appropriate dropbox.

 

6. Any questions about the assignment, or format questions, should be directed to your course instructor.

——————————————- Career Competencies —————————————–

 

In this assignment, you will engage in developing the following career competencies:

 

Analyzing Quantitative Data

Analyzing Qualitative Data

 

——————————————-     Assignment          ——————————————-

 

1.  Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue from sales of subway tickets. The mayor’s economic adviser reminds her that she is focusing only on the price effect and ignoring the quantity effect. Explain why the mayor’s estimate of a one-third loss of revenue is likely to be an overestimate.

 

 

2.  Bob, Bill, Ben, and Brad Baxter have just made a documentary movie about their basketball team. They are thinking about making the movie available for download on the Internet, and they can act as a single-price monopolist if they choose to. Each time the movie is downloaded, their Internet service provider charges them a fee of $4. The Baxter brothers are arguing about which price to charge customers per download.  The accompanying table shows the demand schedule for their film.

 

Price of download

Quantity of downloads demanded

$10

0

8

1

6

3

4

6

2

10

0

15

 

a. Calculate the total revenue and the marginal revenue per download.

Remember, MR = ΔTR/ΔQ

(Marginal Revenue = Change in total revenue divided by change in quantity)

 

 

Price of download

Quantity of downloads demanded

Total Revenue

Marginal Revenue

$10

0

 

xx

8

1

 

 

6

3

 

 

4

6

 

 

2

10

 

 

0

15

 

 

 

 

b. Bob is proud of the film and wants as many people as possible to download it.  Which price would he choose? How many downloads would be sold? (For this part of the question, do not account for the $4.00 Internet download fee.)

 

 

 

c. Bill wants as much total revenue as possible. Which price would he choose? How many downloads would be sold? (For this part of the question, do not account for the $4.00 Internet download fee.)

 

 

 

d. Ben wants to maximize profit. Which price would he choose? How many downloads would be sold? (For this part of the question, do not account for the $4.00 Internet download fee.)

 

 

 

e. Brad wants to charge the efficient price. Which price would he choose? How many downloads would be sold?

 

 

 

 

3. Diagram 1., illustrates your local electricity company’s natural monopoly. The diagram shows the demand curve for kilowatt-hours (kWh) of electricity, the company’s marginal revenue (MR) curve, its marginal cost (MC) curve, and its average total cost (ATC) curve. The government wants to regulate the monopolist by imposing a price ceiling.

 

Diagram 1.     

 

 

a. In diagram 2., the government does not regulate this monopolist. Which price will it charge, and how much will it produce?  What does the red triangle represent?  Why? (If the red triangle is not on the diagram, you may need to readjust it to its original format.  When you type into the document, the triangle may move.)


Price?
Quantity?

Red Triangle?

 

 

 

 

 

 

 

 

Diagram 2. No Regulation          

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

b. In diagram 3., the government imposes a price ceiling equal to the marginal cost, $0.30. Will the monopolist make profits or lose money? Explain the shaded area of the diagram and what it means for the monopolist. If the government does impose this price ceiling, do you think the firm will continue to produce in the long run?

Profits or Lose Money?
Shaded Area?

Produce or Not Produce?

 

 

Diagram 3.  Price ceiling $0.30  

 

 

 

 

 

 

 

c. In diagram 4., the government imposes a price ceiling of $0.50, will the monopolist make a profit, lose money, or break even?  Explain area of the diagram marked by the red dashed lines and what it means for the monopolist.

Profit, Lose Money, or Break Even?
Area Marked by Red Dashed Lines?

What does this mean for the monopolist?

 

        Diagram 4.  Price ceiling $0.50 

 

 

 

 

 

 

——————————————–

References:

 

 

Unit  _9_  Practice Assignment Grading Rubric

     

Content

Percent Possible

Points Possible

Full assignment

100%

40

 

 

 

Overall Writing:

20%

8

correct coversheet information at the top of 1st page

 

2

APA format for answers

 

1

correct citations

 

1

standard English no errors

 

2

At least ONE, or more, references

 

2

 

 

 

Answers:  provides complete information demonstrating analysis and critical thinking:

80%

32

Individual Questions:

 

 

1. – Explain the price effect & quantity effect of Mayor’s estimate.

 

4

2.a. -Calculate total revenue and  marginal revenue.

 

4

2. b. – What is Bob’s price and quantity?

 

3

2. c. -What is Bill’s price and quantity?

 

3

2. d. –  What is Ben’s price and quantity?

 

3

2.e. –  What is Brad’s price and quantity?

 

3

3. a. – If no regulation, what is output level, explain red triangle?

 

4

3. b. – What will monopoly do, if price ceiling $0.30?

 

4

3. c. – What will monopoly do, if price ceiling $0.50?

 

4

 

 

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.

Read more

Free-revision policy

The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.

Read more

Privacy policy

The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.

Read more

Fair-cooperation guarantee

By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency