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Solutions for Krugman's Economics for AP* | 2nd Edition | ISBN: 9781429218276 | Authors: Margaret Ray, David A. Anderson 9781429218276

Solution for problem 3 Chapter section 11

Bob produces DVD movies for sale, which requires a building and a machine that copies

Krugman's Economics for AP* | 2nd Edition


Problem 3

Bob produces DVD movies for sale, which requires a building and a machine that copies the original movie onto a DVD. Bob rents a building for $30,000 per month and rents a machine for $20,000 a month. Those are his fixed costs. His variablecosts per month are given in the accompanying table a. Calculate Bobs average variable cost, average total cost, andmarginal cost for each quantity of output.b.There is free entry into the industry, and anyone who enterswill face the same costs as Bob. Suppose that currently theprice of a DVD is $25. What will Bobs profit be? Is this along-run equilibrium? If not, what will the price of DVDmovies be in the long run?

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6 elements of experiences — found in reading packet • money spent on experiences has a greater influence on yourself • experience involves all your senses so its a lasting impressionable memory individuals, families, & organizations all benefit from experiences • ie: adobe using road biking to sell their software. Executives respond well to road bike meetings rather than stuffy dinners and meetings that don’t interest them. ◦ erlebnis [mundane] vs. Erfahrung [meaningful] • experiences are the key thing that companies do • the more we can get people engaged the better the experience attributes of meaningful experiences • overcoming challenges • structured experience • anticipation • emotional range

Chapter section 11, Problem 3 is Solved

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Bob produces DVD movies for sale, which requires a building and a machine that copies