Assignment:
Question 1:
Draw a perfectly inelastic supply curve.
Question 2:
If elasticity of demand is 0.5 and price is lowered from $20 to $19, by what percentage will quantity demanded rise?
Question 3:
(a) Illustrate a tax increase.
(b) State what happens to equilibrium price and quantity.
Question 4:
If the price of eye surgery falls by 50-percent and the quantity of contact lenses demanded falls by 25-percent, find the cross-price elasticity of demand for theses two goods.
Question 5:
A perfect competitor would never charge more than market price because ________________; the perfect competitor would never charge less than market price because ________________________.
Question 6:
How much is the firm's most efficient output?
Question 7:
At an output of 9, MC = 20 and AVC = $25. At an output of 10, MC = $32 and AVC = $26. What is the lowest price the firm will accept in the short-run?
Question 8:
The perfect competitor operates at the __________________ point of his or her average total cost curve in the long-run.
Question 9:
A monopoly is a firm that has ____________________substitutes.
Question 10:
The five barriers to entering a monopolized industry are:
Question 11:
There are basically only two justifications for monopolies:
Question 12:
The main economic criticism of monopolies and big business in general is that they are _____________________________.
Question 13:
Price discrimination occurs when a seller charges _________________________ for the same good or service.
Question 14:
The monopolistic competitor's demand curve slopes ________________________________________.
Question 15:
U.S. Steel and a few cigarette companies were all engage in _________________________ to attain their economic ends.
Question 16:
The oligopolist ________________________ at the minimum point of his or her ATC curve.
Question 17:
The most important cartel in the world today is __________________________________________.