Each year around July 4 the town of Flagston has a controversy over how big a fireworks display they should have on the holiday. The three citizens have the demand functions for fireworks that are shown here. The cost per firecracker is $18. Elmer has the demand function P = 20 - Q. Ethel's demand equation is P = 12 - .6Q, and Edith has the demand P = 8 - .4Q.Draw a graph of the individual demand equations and the total community demand for fireworks. Sketch in the marginal cost function as well.
What will be an ideal response?
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Refer to Table 14-8. Which of the following is true?
A) Brawny Juice's dominant strategy is to select a high price. B) Power Fuel does not have a dominant strategy. C) Power Fuel's dominant strategy is to select a low price. D) Brawny Juice does not have a dominant strategy.
Which of the following would most likely serve as an example of a monopoly?
a. a restaurant in a large city b. a dry cleaners in a large city c. a local gas station d. a local electrical company
An economy's standard of living grows over the long run because of:
a. better international competitiveness. b. centralized planning and decision making. c. increase in the amount and quality of resources. d. stringent foreign trade policies.
Negative market feedback refers to a tendency for
A) one or two firms in an oligopolistic industry to respond to price decreases by initiating efforts to engage in price leadership. B) a particular product to fall out of favor with additional consumers because other consumers have stopped purchasing the product. C) the dominant firm in an oligopolistic industry to react to competing firms' price increases by decreasing the price of its own product. D) price wars to break out in oligopolistic industries in which firms produce products possessing characteristics that make them prone to network effects.