ECON101 Lecture 8: Chapter 10
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2. Does this fourth shirt earn an operating profit or impose an operating loss? How large is it?
3. What is the change in total revenue from lowering the price to sell seven rather than six shirts in each color each day? In what sense is the decision to sell this seventh shirt a Ć¢ĀĀbreak pointĆ¢ĀĀ?
8. At 14 shirts per day, the margin is positive. But what is the operating profit or loss on the 14th? The 12th? The 10th shirt?
Quantity | Price | Revenue | Marginal Rev | Variable Cost |
0 | 50 | 0 | 0 | 28 |
1 | 48 | 48 | 48 | 28 |
2 | 46 | 92 | 44 | 28 |
3 | 45 | 135 | 43 | 28 |
4 | 44 | 176 | 41 | 28 |
5 | 42 | 210 | 34 | 28 |
6 | 40 | 240 | 30 | 28 |
7 | 38.31 | 268.17 | 28 | 28 |
8 | 36.5 | 292 | 24 | 28 |
9 | 34.5 | 310.5 | 19 | 28 |
10 | 32.7 | 327 | 16 | 28 |
11 | 30.91 | 340.01 | 13 | 28 |
12 | 29.17 | 350.04 | 10 | 28 |
13 | 27.46 | 356.98 | 7 | 28 |
14 | 25.79 | 361.06 | 4 | 28 |
15 | 24.07 | 361.05 | 0 | 28 |
16 | 22.5 | 360 | -1 | 28 |
How can you calculate NAIRU for Q3 and Q4. I know Q3 is between July-September while Q4 is between October-December.
In this table, I found
Year |
Real GDP |
Unemployment |
CPI |
Real GDPpotential |
NAIRU |
2015Ā Ā |
$16,414.0 billion |
5.167% |
238.305 |
$16,746 billion |
Ā |
2015Ā |
$16,470.6 billion |
5.% |
237.233 |
$16,809 billion |
Ā |
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Year |
Unemployment |
CPI |
NAIRU |
July |
5.3% |
238.654 |
Ā |
August |
5.1% |
238.316 |
Ā |
September |
5.1% |
237.945 |
Ā |
October |
5% |
237.838 |
Ā |
November |
5% |
237.336 |
Ā |
December |
5% |
236.525 |
Ā |
I found the data online and got the Real GDP and GDP potential quarterly, but for Unemployment and CPI, I used the averages of the number from the table (months). How can I solve for NAIRU?Ā