【正文】 l advance in puters because their producer surplus declines. c. Since software and puters are plements, the decline in the price and increase in the quantity of puters means that the demand for software increases, shifting the demand for software to the right, as shown in Figure 16. The result is an increase in both the price and quantity of software. Consumer surplus in the software market changes from B + C to A + B, a net change of A – C. Producer surplus changes from E to C + D + E, an increase of C + D, so software producers should be happy about the technological progress in puters. d. Yes, this analysis helps explain why Bill Gates is one the world’s richest men, since his pany produces a lot of software that is a plement with puters and there has been tremendous technological advance in puters.Figure 16Chapter 13: Q4a. The following table shows the marginal product of each hour spent fishing:HoursFishFixed CostVariable CostTotal CostMarginal Product0 0$10 $0$1011010 515 102181010208324101525642810203045301025252b. Figure 7 graphs the fisherman39。s production function. The production function bees flatter as the number of hours spent fishing increases, illustrating diminishing marginal product.Figure 7b Figure 8cc. The table shows the fixed cost, variable cost, and total cost of fishing. Figure 8 shows the fisherman39。s totalcost curve. It slopes up because catching additional fish takes additional time. The curve is convex because there are diminishing returns to fishing time190。each additional hour spent fishing yields fewer additional fish.Chapter 14: Q9a. Figure 9 illustrates the situation in the . textile industry. With no international trade, the market is in longrun equilibrium. Supply intersects demand at quantity Q1 and price $30, with a typical firm producing output q1.Figure 9b. The effect of imports at $25 is that the market supply curve follows the old supply curve up to a price of $25, then bees horizontal at that price. As a result, demand exceeds domestic supply, so the country imports textiles from other countries. The typical domestic firm now reduces its output from q1 to q2, incurring losses, since the large fixed costs imply that average total cost will be much higher than the price.c. In the long run, domestic firms will be unable to pete with foreign firms because their costs are too high. All the domestic firms will exit the industry and other countries will supply enough to satisfy the entire domestic demand.Chapter 15: Q4a. Figure 5 illustrates the market for groceries when there are many peting supermarkets with constant marginal cost. Output is QC, price is PC, consumer surplus is area A, producer surplus is zero, and total surplus is area A.Figure 5a Figure 6bb. If the supermarkets merge, Figure 6 illustrates the new situation. Quantity declines from QC to QM and price rises to PM. Area A in Figure 5 is equal to area B + C + D + E + F in Figure 6. Consumer surplus is now area B + C, producer surplus is area D + E, and total surplus is area B + C + D + E. Consumers transfer the amount of area D + E to producers and the deadweight loss is area F.Chapter 16: Q2a. OPEC members were trying to reach an agreement to cut production so they could raise the price.b. They were unable to agree on cutting production because each country has an incentive to cheat on any agreement. The turmoil is a decline in the price of oil because of increased production.c. OPEC would like Norway and Britain to join their cartel so they could act like a monopoly.Chapter 23: Q1a. Consumption increases because a refrigerator is a good purchased by a household.Investment increases because a house is an investment good.Consumption increases because a car is a good purchased by a household, but investment decreases because the car in Ford’s inventory had been counted as an investment good until it was sold.Consumption increases because pizza is a good purchased by a household.Government purchases increase because the government spent money to provide a good to the public.Consumption increases because the bottle is a good purchased by a household, but net exports decrease because the bottle was imported.Investment increases because new structures and equipment were built.Chapter 24: Q4a. Since the increase in cost was considered a quality improvement, there was no increase registered in the CPI.b. The argument in favor of this is that consumers are getting a better good than before, so the price increase equals the improvement in quality. The problem is that the increased cost might exceed the value of the improvement in air quality, so consumers are worse off. In this case, it would be better for the CPI to at least partially reflect the higher cost.Chapter 25: Q4The opportunity cost of investing in capital is the loss of consumption that results from redirecting resources towards investment. Overinvestment in capital is possible because of diminishing marginal returns. A country can overinvest in capital if people would prefer to have higher consumption spending and less future growth. The opportunity cost of investing in human capital is also the loss of consumption that is needed to provide the resources for investment. A country could overinvest in human capital if people were too highly educated for the jobs they could get190。for example, if the best job a . in philosophy could find is managing a restaurant.