ANSWERS TO CHAPTER 26

Part 2

  1. a. ........ 12

    b. ........ $7

    To answer questions involving a monopsony or a buyers' cartel, draw the ME curve.

    c. ........ 10

    d. ........ $6

    e. ........ 20

    f. ....... $11

    g. ........ 10

    h. ........ 10

    i. ........ 14

    j. ........ $8

    To find the quota assigned to each league, draw the horizontal MARGE line. MARGE = $15, where $15 is the price coordinate of the point where TOTAL DEMAND and ME cross.

    k. ......... 8

    l. ......... 6

    M. SEE FIGURE


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