Related questions with answers

Read Eye on Cell Phones and explain why cell-phone producers offer such a large variety of their products. Draw a graph of a firm’s cost and revenue curves if all cell phones are identical. Use your graph to illustrate the effects of the firm introducing a new, differentiated cell phone.

Mike’s, a firm in monopolistic competition, produces bikes. With no advertising, Mike’s profit-maximizing output is 500 bikes a day and the price is $100 a bike. Now all firms begin to advertise. With advertising, Mike’s maximizes profit by producing 1,000 bikes a day and charging$50 a bike. How does advertising change Mike’s markup and excess capacity?

Find the total cost of grass seed for each of these lawns. Use the chart to help you.

\begin{aligned} \begin{array}{lccc} \textbf{Area of Lot} && \textbf{Area of House and Driveway} && \textbf{Variety of Seed}\\ 2,010\ \text{m}^2 && 70\ \text{m}^2 && \mathrm{D} \end{array} \end{aligned}

	Coverage Rates
Variety	Coverage per Bag	Cost per Bag
A. Shady Seed	$275 \mathrm{~m}^2$	$\$ 11.79$
B. Show Seed	$200 \mathrm{~m}^2$	$\$ 7.59$
C. Hardy Seed	$450 \mathrm{~m}^2$	$\$ 9.99$
D. Generic Seed	$400 \mathrm{~m}^2$	$\$ 5.69$