Department of Economics
... A firm has increasing returns to scale and is making profits. The government is concerned that the firm has grown too big, and splits it into two smaller firms of equal size. What effect would this have on overall profits? Explain. Is this statement true? “A profit-maximizing firm in a perfectly com ...
... A firm has increasing returns to scale and is making profits. The government is concerned that the firm has grown too big, and splits it into two smaller firms of equal size. What effect would this have on overall profits? Explain. Is this statement true? “A profit-maximizing firm in a perfectly com ...
Slides 2
... Finding a Demand function given two observations Example 1: Suppose that the demand is 4000 liters when the gas price is $0.90 and it is 3800 liters when the gas price increased to $1.00. Find the demand function of the gas station? • The demand function is: D = mp + B • The slope m = change in dem ...
... Finding a Demand function given two observations Example 1: Suppose that the demand is 4000 liters when the gas price is $0.90 and it is 3800 liters when the gas price increased to $1.00. Find the demand function of the gas station? • The demand function is: D = mp + B • The slope m = change in dem ...
PROBLEM SET - 4 Multiple Choice Questions
... production possibilities frontier in Figure 2-9. Between points F and G, the opportunity cost of one more novel equals __________. Between points G and H, the opportunity cost of one more novel equals __________. a. 0.4 textbooks; 0.5 textbooks b. 4 textbooks; 5 textbooks ...
... production possibilities frontier in Figure 2-9. Between points F and G, the opportunity cost of one more novel equals __________. Between points G and H, the opportunity cost of one more novel equals __________. a. 0.4 textbooks; 0.5 textbooks b. 4 textbooks; 5 textbooks ...
Izmir University of Economics Department of Economics Econ 101
... production possibilities frontier in Figure 2-9. Between points F and G, the opportunity cost of one more novel equals __________. Between points G and H, the opportunity cost of one more novel equals __________. a. 0.4 textbooks; 0.5 textbooks b. 4 textbooks; 5 textbooks ...
... production possibilities frontier in Figure 2-9. Between points F and G, the opportunity cost of one more novel equals __________. Between points G and H, the opportunity cost of one more novel equals __________. a. 0.4 textbooks; 0.5 textbooks b. 4 textbooks; 5 textbooks ...
SL 151 - Rose
... purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $3.50 to $4.50, the quantity demanded will decrease from 2,200 units to 1,800 units a month. (15 points) A. Calculate the price elasticity of demand using the arc formula. ...
... purchases associated with a proposed price change. You conduct a survey and find that if the price of a six-pack increases from $3.50 to $4.50, the quantity demanded will decrease from 2,200 units to 1,800 units a month. (15 points) A. Calculate the price elasticity of demand using the arc formula. ...
Economics
... that a certain style of card is not selling, and the display of that card is taking up precious space in the small store. “Unfortunately, I bought these cards up front and they cannot be returned,” he says. “I guess I will just throw them away and use the space for something that has a better chance ...
... that a certain style of card is not selling, and the display of that card is taking up precious space in the small store. “Unfortunately, I bought these cards up front and they cannot be returned,” he says. “I guess I will just throw them away and use the space for something that has a better chance ...
Lecture 3
... Demand Curve: relationship between quantity demanded and price, other factors fixed Law of Demand: demand curves slope down Change in price causes movement along the demand curve Change in income or other background factor causes shift of demand curve A demand curve is hypothetical ...
... Demand Curve: relationship between quantity demanded and price, other factors fixed Law of Demand: demand curves slope down Change in price causes movement along the demand curve Change in income or other background factor causes shift of demand curve A demand curve is hypothetical ...
Name
... b. A Monopolistically competitive firm can make a profit in the long run. c. An Oligopoly can make a profit in the long run. d. Oligopolies will always collude. e. Oligopolies are productively efficient. 6. In a specific industry the concentration ratio is 100%. What can we say for sure about this i ...
... b. A Monopolistically competitive firm can make a profit in the long run. c. An Oligopoly can make a profit in the long run. d. Oligopolies will always collude. e. Oligopolies are productively efficient. 6. In a specific industry the concentration ratio is 100%. What can we say for sure about this i ...
utils - McGraw Hill Higher Education
... Suppose it must decide whether to buy its own copier or send out to a copy shop such as Kinko’s. – If the business buys a copier, it needs to lay out the upfront cost, as well as for toner and paper. – To make a decision, it needs to know the actual cost of the machine and the price of a copy. – The ...
... Suppose it must decide whether to buy its own copier or send out to a copy shop such as Kinko’s. – If the business buys a copier, it needs to lay out the upfront cost, as well as for toner and paper. – To make a decision, it needs to know the actual cost of the machine and the price of a copy. – The ...
Econ Test Review
... Three Basic Economic Questions What to produce? How to produce? For whom to produce? ...
... Three Basic Economic Questions What to produce? How to produce? For whom to produce? ...
Supply and demand
In microeconomics, supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good, or other traded item such as labor or liquid financial assets, will vary until it settles at a point where the quantity demanded (at the current price) will equal the quantity supplied (at the current price), resulting in an economic equilibrium for price and quantity transacted.The four basic laws of supply and demand are: If demand increases (demand curve shifts to the right) and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases (demand curve shifts to the left) and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases (supply curve shifts to the right), a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply decreases (supply curve shifts to the left), a shortage occurs, leading to a higher equilibrium price.↑