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Why will the firms be able to make economic profit in the long run? Why or why not? What do competitive price searchers have to do to make economic profit?
Discuss what price will maximize the profits of a price searcher? How will the firm's marginal cost compare with its price at the profit-maximum output?
Discuss how many units would the Tucker Tomato Farm produce if the price of tomatoes fell to $450 per ton? What would be the firm's profits?
Is price discrimination harmful to the economy? How does price discrimination affect the total amount of gains from exchange?
Which is the safer (less likely to result in a substantial capital loss) investment? Why? Is there an offsetting advantage to the other investments?
What determines whether small firms, mediumsize firms, or large firms will dominate in a market?
Is quality and style competition as important as price competition? Would you like to live in country where government regulation restricted use of competition?
In which case will it be easier for customers to get a taxi? In which case will the amount of capital required to enter the taxi business be greater?
Why is oligopolistic collusion more difficult when there is product variation than when the products of all firms are identical?
How will high entry barriers into a market influence the long-run profitability of the firms and the cost efficiency of the firms in the industry.
Why is a monopolist subject to any competitive pressures? Explain. Would an unregulated monopolist have an incentive to operate and produce efficiently?
Does economic theory suggest that regulatory agency will in fact follow proper regulation policy? What are some of factors that complicate regulatory function?
Compare price and output policy of a purely competitive industry with policy that would be established by a profit-maximizing monopolist or trade association.
Do monopolists charge the highest prices for which they can sell their products? Do they maximize their average profit per sale?
If so, how does one account for the rising real wages of barbers, who, by and large, have used the same techniques for a half-century?
How does a firm decide whether or not to employ an additional unit of a resource? What determines combination of skilled and unskilled workers employed by firm?
Given your demand and cost estimates, what price should you charge if you want to maximize your weekly profit? What output should you produce?
Discuss why do some people earn higher wages than others? Why are wages in some occupations higher than in others?
If you use the notion of derived demand, what impact would a boycott on sugar have on the wages of the farm laborers in the short run? In the long run?
What impact will a highly elastic demand for a product have on the elasticity of demand for the resources used to produce the product? Explain.
Discuss how low would the Mexican wage have to be for the firm to reduce its wage cost per unit of output by moving to Mexico?
The last unit of capital hired (rented) cost $500 per month and increased output by 80 dresses. Is the dressmaker minimizing costs?
Suppose that a security guard would completely eliminate the shoplifting in your store.
Make sure that your solution is grounded in economic reality and is in compliance with Title VII.
In contrast, Carole likes both foods and can hardly tell the difference between the two. Discuss who will have the more elastic demand for yogurt?