Start Discovering Solved Questions and Your Course Assignments
TextBooks Included
Active Tutors
Asked Questions
Answered Questions
Discuss the principle of price discrimination and illustrate how a firm might apply this principle to gain from such a practice.
Describe the conditions that characterize monopolistic competition competitive price- searcher market).
Explain the impact of time on the elasticity of market supply and discuss the role of profits and losses in a purely competitive market.
Contrast the role of constant-cost, increasing-cost, and decreasing-cost industries in determining the shape of a long-run market supply curve.
Explain the decision by price takers to continue to operate, temporarily shut down, or go out of business, when faced with price below average total cost.
Discuss the conditions that characterize pure competition and explain how and why price takers maximize profits at quantity for which marginal cost and price.
Define economies and diseconomies of scale, explain how each is possible, and relate each to shapes of long-run average total cost curves.
Describe the shapes of the short-run marginal cost, average variable cost, average fixed cost, and average total cost curves.
identify opportunity costs, fixed costs, variable costs, marginal costs, average costs and sunk costs and differentiate between economic costs and accounting
Distinguish between 1) explicit costs and implicit costs, 2) economic profit and accounting profit, and 3) the short run and the long run in production.
Discuss the characteristics of consumer indifference curves, role of consumption-opportunity constraint and budget constraint in indifference curve analysis.
Calculate and interpret price and income elasticity of demand, and explain why the price elasticity of demand tends to increase in the long run.
Discuss the determinants of price and income elasticity of demand, and explain the concepts of price and income elasticity of supply.
Explain the fundamental principles of consumer choice and discuss marginal utility, marginal benefit, and the demand curve.
Compare and contrast the impact of anticipated or unanticipated monetary policy on the inflation rate, real output, employment and interest rates.
What is the main advantage of options versus forwards or futures as an instrument of currency speculation?
Write down the expectations form of PPP, the uncovered interest-parity condition, and the Fisher-open condition. Derive each one from the other two.
What is liquidity preference, and can it affect covered interest parity if people can borrow without penalty against covered foreign-currency assets?
What characteristics of a Big Mac1 led The Economist to choose it as a basis for their alternative PPP exchange-rate measure?
What is one-way versus two-way arbitrage in the context of PPP, and how do the implications of the two types of arbitrage differ?
Assume that the prices of a standard basket of goods and services in different countries are as follows. What are the implied PPP exchange rates?
How can speculators cause the foreign exchange market to be stable even when the economy is moving along the downward-sloping part of a J curve?
What is the slope of the currency supply curve when the demand for imports is unit-elastic, that is, equal to 1.0?
How the horizontal addition of interest and dividend earnings to currency's demand curve will appear when consideration is given to the effect of exchange rate.
What do you think the net investment position of these locations will be? Should we worry if Alaska is in debt?