Home » (4 points) Pecan pie demand. Your friend Helen B. Carter has left school to open a bakery.

(4 points) Pecan pie demand. Your friend Helen B. Carter has left school to open a bakery.

1.(4 points) Pecan pie demand. Your friend Helen B. Carter has left school to open a bakery. She has done some market research and finds that your neighbors value pies according to the following schedule:Pecan pieMU1 $40.00 2 $36.00 3 $32.40 4 $29.16 5 $26.24 6 $23.62 7 $21.26 8 $19.13 9 $17.22 10 $15.50 11 $13.95 12 $12.55 13 $11.30 14 $10.17  a.(2 points) Graph the demand curve for pecan pie. Does the demand curve have a positive or negative slope? Why?b. (1 point) How many pies will Helen sell at $19.13? How many at $29.16?c.(1 point) What will happen if a new doctor comes to town and tells everyone to lose weight? What will happen if people learn that Helen makes really delicious pies? 2. (4 points) Production. Helen makes pies using equipment that she rents for $50 and pecans and other ingredients that cost $4.66 a pie. She hires workers and finds that they produce pies according to the following schedule:PiesWorkers10.2520.5831.0241.6152.4063.4474.8286.6699.111012.361116.691222.451330.111440.30Workers are paid $12/hour.a.(2 points) Calculate and graph the marginal cost of each pie. Show your calculations! Why does the MC curve have the slope (up, down, or flat) that it does?b. (2 points) Calculate and graph the marginal cost of each pie if workers become 25% more productive, that is to say, if each pie can be made with only 75% as much labor. Show your calculations! Calculate and graph marginal cost if workers get a raise to $18/hour, with the old productivity.3. (4 points) Perfect competition and equilibrium. b.(1 point) Draw the area of consumer surplus on your graph. Draw the area of producer surplus.c.(2 points) Calculate consumer surplus as the sum of the difference between the price and the marginal utility for each pie. Calculate producer surplus as the sum of the difference between price and marginal cost for each pie.4.(6 points) Monopoly and equilibriuma.(2 points) Helen gets smart and realizes that she is the only pie shop around. Calculate the marginal revenue she gets for each additional sale as the change in total revenue (price times sales). Graph this and show the new quantity of sales and the new price.b.(1 point) Draw the area of consumer surplus on your graph. Draw the area of producer surplus.c.(2 points) Calculate consumer surplus as the sum of the difference between the price and the marginal utility for each pie. Calculate producer surplus as the sum of the difference between price and marginal cost for each pie. d.(1 point) Compare the sum of consumer and producer surplus for the monopoly with the results for perfect competition. Which is better for consumers? Which is better for producers? Which is better for society?5.(2 points) Moving Equilibrium. Show the effect of each on the monopoly market equilibrium; you don’t need to have exact answers but explain the direction of change in the demand and/or marginal cost curves.a.(0.5 points) Pecan prices rise.. b.(0.5 points) Helen gets her oven for free. c.(0.5 points) More people see Sweeney Todd and are scared of pie shops. d.(0.5 points) More people see Sweeney Todd and more people are curious about Helen’s pies.

Show more







Calculate Your Essay Price
(550 words)

Approximate price: $22

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
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

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

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

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10