Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
Explain why the market supply curve of a resource slopes upward. Distinguish between how market reacts to a temporary difference in prices for same resource.
Analyze what would the supply of labor curve look like over this range of wages? Why?
Explain the concept of the net utility of work. How is it useful in developing the labor supply curve?
Use the diagram to illustrate the economic rent earned by workers who would fish at wage rates below the market equilibrium by shading in the appropriate area.
How students would be willing to sacrifice more hours of summer leisure the higher the wage rate. Identify the market equilibrium wage and hours of labor.
Why did labor supply, labor demand, or both change? Was only a single labor market affected, or were the effects felt in several markets simultaneously?
Suppose the market price of output is $25 per unit. What is the maximum weekly wage at which the firm would hire that additional worker?
Draw a line to represent fixed costs. Then draw in curves to represent variable cost and total cost.
Charles Cobbler, who continues to make fine shoes, faces typical short-run cost curves. Draw a curve that would represent marginal cost of production for firm.
Pick one and see if you can determine how it might affect a firm's cost curves. Will it cause one resource to be substituted for another?
How does having a menu that is uniform around the country provide McDonald's. How is menu planning made more complex by expanding into other countries?
(Perfect Competition and Efficiency) Define productive efficiency and allocative efficiency. What conditions must be met to achieve them?
Why does the long-run industry supply curve for an increasing-cost industry slope upward? What causes the increasing costs in an increasingcost industry?
(Case Study: Auction Markets) Which of the characteristics of the perfectly competitive market structure are found in the Flower Auction Holland?
(Market Structure) Define market structure. What factors are considered in determining the market structure of a particular industry?
Draw the isocost line for a total cost per day of $2,000. Label the axes. Demonstrate your answer to part (b) using isocost lines and isoquant curves.
Then, try to determine how financial markets contribute to productive and allocative efficiency in the U.S. economy.
How does the arrival of new information affect the price of those futures contracts? Try to model the situation, using demand and supply curves.
Show on your graph and analyze the long-run adjustment to income change. Be sure to discuss any changes in output levels, prices, profits and number of firms.
Assuming that this is a constant-cost industry, describe the process by which the industry returns to long-run equilibrium following a change in market demand.
Find a commodity that you believe trades in a perfectly competitive market. Describe why you believe this is so.
Draw typical marginal, average and average cost curves that would illustrate firm's situation. Identify quantity the firm would choose to produce at this price.
Draw a marginal revenue curve for a price at which firm would suffer such severe losses that it would choose to shut down in the short run given marginal cost.
Explain how it may be profitable for South Korean manufacturers to sell new autos at a lower price in the United States than in South Korea.
(Conditions for Price Discrimination) What four conditions must be met for a monopolist to price discriminate successfully?