syllabus 102
... 8. Describe the determinants of scale economics. 9. Describe the relation between long-run cost and supply. 10. Describe the nature of supply and demand in competitive markets. 11. Describe monopoly behavior and why it has resulted in regulation and antitrust legislation. 12. Describe other forms of ...
... 8. Describe the determinants of scale economics. 9. Describe the relation between long-run cost and supply. 10. Describe the nature of supply and demand in competitive markets. 11. Describe monopoly behavior and why it has resulted in regulation and antitrust legislation. 12. Describe other forms of ...
1. All of the following factors will cause a demand curve to shift
... rock concert increased, even though the number of tickets sold would fall. What does this imply about the price elasticity of demand for concert tickets? a. Demand is inelastic b. Demand is elastic c. Demand is unit elastic 10. Assume the demand curve for compact discs slopes downwards, and the supp ...
... rock concert increased, even though the number of tickets sold would fall. What does this imply about the price elasticity of demand for concert tickets? a. Demand is inelastic b. Demand is elastic c. Demand is unit elastic 10. Assume the demand curve for compact discs slopes downwards, and the supp ...
S11 Practice Test Multiple Choice Identify the choice that best
... a. firms will leave the industry and the price will fall in the long run. b. there will be economic profits and firms will enter the industry in the long run. c. the market supply curve will shift to the left and price will fall in the long run. d. the firm will produce q4. e. the price will rise in ...
... a. firms will leave the industry and the price will fall in the long run. b. there will be economic profits and firms will enter the industry in the long run. c. the market supply curve will shift to the left and price will fall in the long run. d. the firm will produce q4. e. the price will rise in ...
price determination
... Many buyers/Many Sellers – Many consumers with the willingness and ability to buy the product at a certain price, Many producers with the willingness and ability to supply the product at a certain price. Homogeneous Products – The products of the different firms are EXACTLY the same, e.g. fruit. Low ...
... Many buyers/Many Sellers – Many consumers with the willingness and ability to buy the product at a certain price, Many producers with the willingness and ability to supply the product at a certain price. Homogeneous Products – The products of the different firms are EXACTLY the same, e.g. fruit. Low ...
ECONOMICS
... Best outcome would be for both thieves to “clam up” (1 year each). However, each player has the incentive to “rat” on the other, regardless of the behavior of the other person. As a result, both players “rat” on each other resulting in the worst possible outcome (5 ...
... Best outcome would be for both thieves to “clam up” (1 year each). However, each player has the incentive to “rat” on the other, regardless of the behavior of the other person. As a result, both players “rat” on each other resulting in the worst possible outcome (5 ...
Microeconomics Review
... • Consider the market for CDs. The equilibrium price is $15 and the equilibrium quantity is 1000. The government introduces a $2 tax on each CD sold. The quantity in the market decreases to 900 as a result of the tax. Assuming that the demand and supply has the same ...
... • Consider the market for CDs. The equilibrium price is $15 and the equilibrium quantity is 1000. The government introduces a $2 tax on each CD sold. The quantity in the market decreases to 900 as a result of the tax. Assuming that the demand and supply has the same ...
Midterm Exam #1
... This exam consists of three parts. The first part requires you to provide a definition as well as an application for each concept. The second part involves solution of simple economic problems. The third part provides opportunities for students to employ economic analysis to address more complicated ...
... This exam consists of three parts. The first part requires you to provide a definition as well as an application for each concept. The second part involves solution of simple economic problems. The third part provides opportunities for students to employ economic analysis to address more complicated ...
From Perfect Competition to Monopoly
... Under Perfect Competition or Monopolistic Competition economic profits go to zero because of the entry of new firms increases market supply and lowers prices. Economic Profits are under no pressure to shrink under Oligopoly or Monopoly because entry doesn’t occur so prices do not fall. Teaching Ti ...
... Under Perfect Competition or Monopolistic Competition economic profits go to zero because of the entry of new firms increases market supply and lowers prices. Economic Profits are under no pressure to shrink under Oligopoly or Monopoly because entry doesn’t occur so prices do not fall. Teaching Ti ...
Important Lecture Vocabulary and Concepts
... Origin (of a graph) Slope of a straight (or curved) line Tanget to a curve Y-intercept Ray through the origin, or ray 450 line Production indifference map Chapter 2 Factors of production, or inputs Outputs Gross domestic product (GDP) Open economy Closed economy Recession Transfer payments Progressi ...
... Origin (of a graph) Slope of a straight (or curved) line Tanget to a curve Y-intercept Ray through the origin, or ray 450 line Production indifference map Chapter 2 Factors of production, or inputs Outputs Gross domestic product (GDP) Open economy Closed economy Recession Transfer payments Progressi ...
solution
... cost. Unlike the case of perfectly competitive markets, under monopoly marginal revenue is not equal to price. Marginal revenue is always less than price under imperfectly competitive markets because to sell an extra unit of output the firm must lower the price of all units, not just the marginal on ...
... cost. Unlike the case of perfectly competitive markets, under monopoly marginal revenue is not equal to price. Marginal revenue is always less than price under imperfectly competitive markets because to sell an extra unit of output the firm must lower the price of all units, not just the marginal on ...
Student Number:
... Question 1. [5 marks] Suppose the market demand curve for a product is given by Qd=100-2 P-2U and the market supply curve is given by Qs = -34+5 P +2V. Assume initially that U=15 and V=10. Note that U and V refer to some exogenous variables. a) [2.5 marks] Calculate the equilibrium price and quantit ...
... Question 1. [5 marks] Suppose the market demand curve for a product is given by Qd=100-2 P-2U and the market supply curve is given by Qs = -34+5 P +2V. Assume initially that U=15 and V=10. Note that U and V refer to some exogenous variables. a) [2.5 marks] Calculate the equilibrium price and quantit ...
Sample Final Examination
... E. Efficiency maximizes total economics surplus and thereby allows other goals to be more fully achieved. ...
... E. Efficiency maximizes total economics surplus and thereby allows other goals to be more fully achieved. ...
Problem Set 6
... d. What price will cause Pat to leave the pizza industry? (Answer: if the price remains below $13.50, Pat will leave the industry.) e. What price will cause other firms with costs identical to Pat’s to enter the industry? (Answer: at any price greater than $13.50, firms enter the industry.) f. What ...
... d. What price will cause Pat to leave the pizza industry? (Answer: if the price remains below $13.50, Pat will leave the industry.) e. What price will cause other firms with costs identical to Pat’s to enter the industry? (Answer: at any price greater than $13.50, firms enter the industry.) f. What ...
Part II: Micro-Economics (the Market): II
... The area below the supply curve is the opportunity cost. If the supply curve is horizontal (perfectly elastic), zero economic rent and 100 % opportunity cost. ...
... The area below the supply curve is the opportunity cost. If the supply curve is horizontal (perfectly elastic), zero economic rent and 100 % opportunity cost. ...
Document
... (b) Suppose there are 6 identical competitive firms, each with cost function C(X)=X2+1. Find the short-run equilibrium. (c) Find the long-tun equilibrium (assuming the same cost function as in (b)). (d) Suppose that the firms in this industry are able to merge into a single firm. What will be the ou ...
... (b) Suppose there are 6 identical competitive firms, each with cost function C(X)=X2+1. Find the short-run equilibrium. (c) Find the long-tun equilibrium (assuming the same cost function as in (b)). (d) Suppose that the firms in this industry are able to merge into a single firm. What will be the ou ...
File
... 32. Why do long run average total costs eventually rise as a firm grows larger? 33. Explain the relationship between Demand and Marginal Revenue for a Monopoly. 34. Allocative and Productive Efficiency in the various market structures. 35. Entry and Exit into various market structures in the long ru ...
... 32. Why do long run average total costs eventually rise as a firm grows larger? 33. Explain the relationship between Demand and Marginal Revenue for a Monopoly. 34. Allocative and Productive Efficiency in the various market structures. 35. Entry and Exit into various market structures in the long ru ...
UNIT 1: Basic Economic Concepts (Two Weeks)
... Welcome to Advanced Placement Microeconomics! This semester long course is designed to help you develop critical thinking skills necessary to compete in the 21st century through the understanding, application, and analysis of fundamental microeconomic concepts. Concepts such as scarcity, cost-benefi ...
... Welcome to Advanced Placement Microeconomics! This semester long course is designed to help you develop critical thinking skills necessary to compete in the 21st century through the understanding, application, and analysis of fundamental microeconomic concepts. Concepts such as scarcity, cost-benefi ...
AP Microecnomics
... Big Two for free-response: Market structure & factor markets Free-response prediction…externality??...game theory?? Product market v. factor market Firm v. industry….Firm: (a) price taker (b) “can sell/hire all it wants” (c) horizontal curve “Profit-maximizing” signifies producing at MC = MR…not nec ...
... Big Two for free-response: Market structure & factor markets Free-response prediction…externality??...game theory?? Product market v. factor market Firm v. industry….Firm: (a) price taker (b) “can sell/hire all it wants” (c) horizontal curve “Profit-maximizing” signifies producing at MC = MR…not nec ...
26 – Monopolistic Competition
... The Individual Firm’s Demand and Cost Curves: Since the individual firm is not a perfect competitor its demand curve slopes downward. It faces a marginal revenue curve that is downward sloping and below the demand curve. The profit-maximizing rate of output and price is determined by the intersectio ...
... The Individual Firm’s Demand and Cost Curves: Since the individual firm is not a perfect competitor its demand curve slopes downward. It faces a marginal revenue curve that is downward sloping and below the demand curve. The profit-maximizing rate of output and price is determined by the intersectio ...