ECO200Y1 Lecture : Feb08th General Equilibrim
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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 âbreak pointâ?
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 |
YEAR | P of Shoes | Q of Shoes | P of Hammers | Q of Hammers |
2010 | $5 | 400 | $2 | 50 |
2011 | $6 | 400 | $2 | 100 |
2012 | $7 | 400 | $3 | 100 |
a) What is the Nominal GDP for each year?
2010: $ 2100 2011: $ 2600 2012: $ 3100
b) What is Real GDP for each year using 2011 as the base year?
2010: $ 2410 2011: $2600 2012: $2700
c) What is the GDP deflator for each year?
2010: 87.136 2011:100 2012: 114.8
d) Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2010 and 2011 from the previous year.
NOMINAL: 2010 to 2011: %23.8 2011 to 2012: %19.23
REAL: 2010 to 2011: %7.88 2011 to 2012: %2.8
DEFLATOR: 2010 to 2011:% 14.7 2011 to 2012: % 14.8
this is my question :
e) Did economic well being rise more from 2010 to 2011 or from 2011 to 2012? Why?