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Let TC denote total cost, Q the quantity produced, FC fixed cost, VC variable cost and MC marginal cost. Then, the average total cost equals:
Holding everything else constant, the change in price that results from a leftward shift of the supply curve will be greater if:
A government-imposed maximum price at which a good can be sold is called a price ______
Perfect competition means: a. The demand curve that any individual firm faces is perfectly elastic and the market demand is also perfectly elastic. b. Firms get the same profit whether they produce a
What is true about a market in which there is a horizontal supply curve?
Problem 2) A perfectly competitive firm’s marginal revenue curve _________. a. is horizontal b. has a positive slope
Reducing a tariff will ______ the domestic production of the good and ______ the total domestic consumption of the good.
Problem 1. A perfectly competitive market is ____ efficient than a single price monopoly, and a second-degree price discriminating monopoly is _____ efficient than a monopoly that perfectly price di
The accompanying table below lists three supply points for an individual, perfectly competitive firm operating in the short run.
As consumption of a good decreases, its marginal utility and its total utility.
Joan and Mary work at a Circus as animal trainers. The table above shows how many animals each of them can train in one day.
Suppose a single price monopolist controls the market for peanuts. Find the monopolist’s optimal price and quantity choice. Find the profit.
a. What is the firm’s total fixed cost? b. Complete the missing data in the table. What is the firm’s minimum-cost output?
What is Sammy’s optimal consumption bundle? How many wooden pencils and how many mechanical pencils will Sammy consume each week?
Now suppose that a city of Madison creates a diet support program. Therefore, it imposes an excise tax of $4/sack of potato chips on producers. Find the equilibrium quantity and price after the tax.
First of all, consider the case of Andreu. What is the opportunity cost of packing one brat for Andreu? And what is the opportunity cost of packing one pizza for Andreu?
Problem 1. Why do economic and accounting profits usually differ a. Because accounting profit includes only explicit costs. b. Because opportunity costs are not included in calculating accounting prof
Which of the following is a difference between natural monopolies and monopolies in general?
At the equilibrium in the market for bananas, the price elasticity of demand is 0.1 and the price elasticity of supply is 5. A price increase due to a shift in the supply curve would lead to&n
When there is an import quota of 10 units, it must be true that the price paid by domestic consumers is
The above graph illustrates the PPF for Badgers. As we move from C to B to A, the opportunity cost of Pizza
Which of the following statements is not a normative Economic statement? a. Everybody ought to be paid the same hourly wage, because each person should be rewarded in proportion to his effort. b. The
Assume that the above figure describes a perfectly competitive market. Find the equilibrium price and quantity, and the value of Consumer’s and Producer’s surplus (CS and PS). Is there a
(a) What is the accounting profit? (b) What is the economic profit? (c) Why are the accounting and economic profits different? (d) Should this firm continue to produce pencils or change to producing e
Now graph or describe with an equation your marginal utility curve for hours of sleep per night. It should reflect your answer to part a.