Problem Set #2
Graduate Level Problem Set. First question is in relation to the article the Population Problem: Theory and Evidence by Partha Dasgupta.
For a purely competitive industry in the long run: (i) several firms exit hence others may earn more than normal profits. (ii) established firms reap higher profits than newer firms. (iii) all resources are fixed for the industry as an entire. (iv) pe
Transactions increase and demand prices move below supply prices while a good turns into: (w) subsidized by the government. (x) subject to a high sales tax. (y) more technologically advanced. (z) a complementary by pr
Define the term Psychological Pricing and what are their aspects?
Opinion of Frank Knight, about economic profits is: (1) rewards for bearing uncertainty. (2) easily capitalized for firms possessing monopoly power. (3) rewards for innovation. (4) easily predicted when competent economic forecasting is employed. (5) equal to accounti
The merely fast food restaurant conveniently located close to a fast-growing suburb may be rather profitable despite sloppy management and poor quality control. There market power can enable several firms along with excessively high production
When this purely-competitive firm makes output level Q, this is operating within the: (i) technological long run. (ii) long run. (iii) short run. (iv) shut down period. (v) boom period of the business cycle.
You win the Idaho state lottery as well as are entitled to two tax-free payments of $500,000 every. You get the first payment today and the next payment in precisely one year. Suppose the interest rate is a generally high 25 percent.
Transaction costs tend to be decreased, consumer prices tend to be lower and additionally stable and economy-wide efficiency is enhanced if: (1) rigid wage and price controls are imposed. (2) central planning fosters
When the relative positions of all affects on costs and revenues are the same for all the several firms in this industry, in that case this firm is most likely operating in a: (w) differentiated oligopoly market in the short run. (x) monopolistically
Describe Break Even Price in Economics for a purely competitive firm?
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