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Assume that the government imposes a lump-sum tax on a monopoly, what will happen to the output and market price?
Suppose the elasticity of deamnd for cereal is 1.If cereal increases in price by25%, how much will the quantitiy demanded decrease by?
If the market-clearing price is 6, obtain the profit maximising level of output.
A monopolist faces the demand curve Q = 60-P/2. The cost function is C=Q2. Find the output that maximises this monopolist’s profits. What are the prices at profits and that output? Find the elas
Give two example of a negative externality and two examples of a positive externality Explain why market outcomes are inefficient in the presence of externalities.
What is the optimal level of production of wine decanters and what is the marginal revenue from the last wine decanter sold and what are the total revenue, total cost, and net benefit (profit) from se
Define carefully what is meant by a demand schedule or curve. State the law of downward-sloping demand. Illustrate the law of downward-sloping demand with two cases from your own experience.
Suppose the supply function is Q=4P^2 and equilibrium quantity=36.What is the price elasticity of supply? What are the steps to find this?
If the price of one of the bundles of good rises, what information is needed to calculate the impact on demand for each of the bundles of goods?
What are the problems faced in determining the demand for a durable good? Illustrate with example of demand for households refrigerator or television set.
After economics class one day, your friend suggests that taxing food would be a good way to raise revenue because the demand for food is quite inelastic.
Economists have observed that spending on restaurant meals declines more during economic downturns than does spending on food to be eaten at home. How might the concept of elasticity help to explain t
Pricing and price competition account for the number one problem facing many marketing executives. What are some of the frequent problems that companies encounter?
Graph the firm’s long-run average cost and show that it reaches a minimum where q =1. Determine the long-run equilibrium price (p*) and the firm’s long-run equilibrium output (q*).
Frank Gunter owns an apple orchard. He employs 40 apple pickers and pays them $7 per hour to pick apples, which he sells for $3.50 per box. If Frank is maximizing profits
What’s the role of price in allocating the resources? Give logical examples for explanation. Draw graphs where necessary.
Originally the consumer faces the budget constraint p1x1+p2x2=m, then the price of good 1 doubles, the price of godd 2 becomes 8 times larger and income becomes 4 times larger. what are the effects of
How do I know whether these goods are complementary or not?
If Apple iPod only played iTunes, and iTunes only could be heard on the Apple iPod, could Apple price the technologically integrated bundle any way they wanted?
What must an entrepreneur do to earn a profit? How do the actions of firms earnings profits influence the value of resources? What happens to the value of resources when losses are present? If a firm
Are people helped more if production results in a loss than if it leads to profit? Is there a conflict between production for people and production for profit?
What does the cost of a good or service reflect? Will producer continue to supply a good or service if consumers are unwilling to pay a price sufficient to cover the cost?
What is being held constant when the supply curve is constructed for a specific good like pizza of automobiles? Explain why the supply curve for a good slopes upward to the right.
Two centuries ago there were more buffalo than cattle in the United States. Even though millions of cattle are killed for beef consumption each year, the cattle population continues to grow while the
What"s wrong with this way of thinking? “Economists claim that when the price of something goes up, producers increase the quantity supplied to the market. But last year, the price of oranges wa