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Table of
Contents
Resource site for
instructors
Errata
Cases
Wiki
Data sources
Recent adoptions
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Chapter 1: Introduction
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Reference |
Correction |
Date |
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Page 11, 3 lines from
bottom |
“the model describes the interaction of these
changes."
[Change “choices” to “changes”] |
10/2007 |
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Page 17, question 1(e) |
From the viewpoint of maximizing
her
total interest income, ... [Change "his" to "her"] |
08/2007 |
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Page 18, Question 6 |
This question refers to the internal
rate of return developed in the math supplement. Consider an
individual who has completed medical school but is not sure which
practice field to choose. Suppose that general practice requires 3
years of additional training (residency) while general surgery
requires 5 years, and that residents are paid $40,000 per year. In
2004, the average income for physicians with less than 2 years
experience was $141,912 for general practice and $228,839 for general
surgery. Malpractice premiums averaged $15,389 and $37,696 for the two
practice areas, respectively. (Source: Bureau of Labor Statistics,
Occupational Outlook Handbook.)
a. Estimate the internal rate of return
for the investment in surgery relative to general practice, assuming a
retirement age of 65 and that doctor is aged 26 at graduation from
medical school. (Hints: Begin the IRR calculation from the time when
the doctor has just completed 3 years of residency. Excel provides an
IRR function.)
[Replace text with
above.] |
03/2007 |
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Page 19, 3d para, next to
last line |
“we ignore the future costs and
benefits and are left with only the first year
cost (including opportunity costs)” |
08/2007 |
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Chapter 2: Demand
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Reference |
Correction |
Date |
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Chapter 3: Elasticity
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Reference |
Correction |
Date |
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Page 80, Question 6(b), lines 2-3 |
Calculate the
percentage change
in the total number = of miles driven in the (i) short run, and (ii)
long run. [Change “impact on” = to “percentage change in”.] |
03/2007 |
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Page 80, Question 8, lines 2-4. |
Assume the average
discount fare increased by 10%, and that the cross-elasticity of
demand for regular rides with respect to discount
fares
is equal to the cross-price elasticity of discount rides with respect
to regular fares. [Change “prices” to “fares”.] |
03/2007 |
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Page 80, Question 8(a) |
a.
Suppose that the own-price elasticity for regular rides is
−0.7.
Based on the given information and assumptions, estimate the own-price
elasticity for discount rides and the cross-price elasticity. (Hint:
For simplicity, assume that total ridership is 1 million per year. Let
the cross-elasticity of demand for regular rides with respect to
discount fares be c. Use the change in regular ridership to calculate
c. Then use c with the change in discount ridership to calculate the
own-price elasticity for discount rides.)
[Correction of own-price
elasticity from "-0.1" to "-0.7" and addition of hint.] |
03/2007 |
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Chapter 4: Supply
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Reference |
Correction |
Date |
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Page 98, last paragraph |
For
Luna Farm, table 4.6 show the long-run cost, revenue, and profit. The
profit column shows that the profit reaches a maximum at a production
rate of about 3,000.
Referring to Figure 4.6, the precise profit-maximizing production rate
is 3,400. [Insert
highlighted text.] |
01/2008 |
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Page 109, line 1 |
“dozen a week,......5,400
dozen a week”
[Change “year” to “week”] |
10/2007 |
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Page 114, Question 7 |
Baker Hughes' report of
monthly rig counts for U.S. states is incomplete. Please refer to
spreadsheet. |
03/2007 |
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Page 115,
equation (4.12) |
dS/dp
= 1
[change
to upper-case "S"] |
08/2007 |
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Chapter 5: Competitive Markets
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Reference |
Correction |
Date |
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Page 131, Figure 5.7(b) |
On
horizontal axis, change "12" to "10.2". |
09/2007 |
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Page 132, Figure 5.8(b) |
On
horizontal axis, change "13" to "10.3". |
09/2007 |
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Page 134, Figure 5.9 |
On
horizontal axis, change "12" to "10.2", and "13" to "10.3". |
09/2007 |
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Page 134, first paragraph |
The
original equilibrium is at point
a.
[Change "b" to "a"]. |
01/2008 |
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Page 139, Question 5 |
Delete part (c) |
03/2007 |
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Chapter 7: Costs
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Reference |
Correction |
Date |
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Page
188, Progress Check 7E |
Suppose
that Sol has made no commitments to the agency,
or
magazine,
or newspaper.
Revise tables 7.7 and 7.8. Should Sol cancel the launch?
[Delete "or newspaper".] |
04/2007 |
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Page 195, question 5(c) |
Does
the cost per chip depend on the total
quantity produced by the entire company
or each factory? [Insert "quantity"] |
08/2007 |
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Page 195, question 7 |
In
January 2004, it bought a shipment of
1,000 Korean DVD players for $200,000
[Insert "1,000'] |
08/2007 |
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Chapter 8: Monopoly
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Reference |
Correction |
Date |
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Page 209, last side-bar |
The
profit-maximizing advertising–sales ratio is the incremental
margin percentage
multiplied by the advertising elasticity of demand. [Insert
“percentage”.] |
05/2008 |
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Page 216, lines 2-4 |
rental margins in recordable
DVDs ... incremental margin
in a recordable DVD monopoly
[change “floppy disk” to “recordable DVD”] |
10/2007 |
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Page 221, question 3, line
3 |
Source:
“Telecoms Chief
Sees Further Fall in Long-Distance Tariffs,” [insert "Source"] |
08/2007 |
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Page 221, question 5, line
7 |
Source:
“Dollar General Sticks to Plan for Prosperity,” [insert "Source"] |
08/2007 |
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Page 221, question 6, line
7 |
Source:
"For Olympic sponsors, it's on to Beijing," [insert "Source"] |
08/2007 |
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Chapter 9: Pricing
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Reference |
Correction |
Date |
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Page 232, 3rd para, line 2 |
“Referring to figure 9.2, this balance occurs at a quantity of 5,000
seats a week."
[Change “year” to “week”]. |
10/2007 |
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Page 232, 4th para, line 2 |
“…the
demand curve from the quantity of 0 up to 5,000 seats a
week."
[Change “year” to “week”]. |
10/2007 |
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Page 235, 8th para, line 5 |
"... hence, the price
of a
an adult fare, a = 2,400
dirhams." [Delete "a" and change "3,200" to "2,400"] |
09/2008 |
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Page 239, "Microsoft
Office", 2nd para, line 5 |
"highest in the U.K.
and lowest in the U.S."
[Change "Singapore" to "the U.S."] |
09/2008 |
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Page 250, 3rd para, line 4 |
"...the seller can avoid the economic inefficiency of providing a
product for which the marginal cost is
greater
than the buyer's benefit." [Change "less" to "greater"]. |
05/2008 |
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Page
254, Question 13, line 7 |
Source:
"Getting better all the time," [insert "Source"] |
08/2007 |
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Chapter 10: Strategic Thinking
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Reference |
Correction |
Date |
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Page 260, side-bar |
"A
strategy is a plan for action in a situation where the parties
actively consider the interactions with one another in making
decisions.
Consider Coke’s decision whether to raise its price. The soft drinks
industry is so concentrated that it surely must consider the reactions
of Pepsi and Cadbury Schweppes. Coke was making a strategic decision."
[Delete] |
10/2007 |
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Page 271, last line |
"…
choosing the
instant messaging
technology”. [Change “database” to “instant messaging”] |
10/2007 |
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Page 282, box case, line
11 |
"the
second tier was 5/8 × 24
=
$15 for each Transco share” [Replace “×” with "="] |
10/2007 |
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Page
289, Question 3, lines 7-11 |
Each
airline believes that, if it cuts its price by 10% while the other
airline maintains its price, its sales would increase by
200,000
tickets, half of which would be new flyers, while the other half will
switch from the higher-priced airline. If both airlines cut their
prices by 10%, then each would increase sales by
100,000
tickets, all of which would be new flyers. [Change "100,000" to
"200,000" and "50,000" to "100,000". |
03/2007 |
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Chapter 11: Oligopoly
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Reference |
Correction |
Date |
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Page 296, 5th para, line 5 |
"…
increase by 3.34% from its original level of
50%."
[Replace “0.5%” with “50%”] |
10/2007 |
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Page 296, equation (11.3) |
 |
10/2007 |
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Page 319, question 7, line
2 |
57%
of the world's reserves [Replace "Fifty-seven" with "57"] |
08/2007 |
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Page
320, para 5 |
Seller P has an analogous profit
function,... [replace "Pluto" with "Seller P"] |
08/2007 |
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Chapter 12: Externalities
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Reference |
Correction |
Date |
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Page 326, lines 6-8 |
“Subscribing
to an instant messaging service provides benefits to other people that
subscribe to that service.”
[Delete] |
10/2007 |
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Page 350, Question 7 |
Source: "New rules for the new
economy," [insert "Source"] |
08/2007 |
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Chapter 13: Asymmetric
Information
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Reference |
Correction |
Date |
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Chapter 14: Incentives and
Organization
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Reference |
Correction |
Date |
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Page 390, 9th line from
bottom |
“…
the worker’s effort affects the value of
product sold." [Replace “number of
deliveries” with “value of product sold”] |
10/2007 |
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Page
410, Question 2 |
Source: "Aetna to buy
U.S. Healthcare..." [insert "Source"] |
08/2007 |
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Chapter 15: Regulation
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Reference |
Correction |
Date |
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Page 420, box case, line
13 |
“allowed profit. Rapid demand
growth has continued, with 15% growth in electricity consumption in
2004.” [Delete] |
10/2007 |
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Page
440, line 2 |
$50,000 + $1,000 x
9 = $59,000 [replace "∞" with "x"] |
08/2007 |
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Answers
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Reference |
Correction |
Date |
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Page
451, 10C (1) |
(40,000
x
2/5) + (40,000 x
3/5) = 40,000 [insert "x"] |
08/2007 |
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Page
451, 10C (2) |
(50,000
x
2/5) + (30,000 x
3/5) = 38,000 [insert "x"] |
08/2007 |
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Page 452, second figure |
Figure
10G
[replace "10RQ8" with "10G"] |
08/2007 |
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Acknowledgments: Tang Yun, Zhaoli Meng, Jerry Siah, Yong Wooi Hon,
Amber Oh |
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