Questions 2. Assume a monopolist faces a market demand curve P = 100 – 2Q‚ and has the short-run total cost function C = 640 + 20Q. What is the profit-maximizing level of output? What are profits? Graph the marginal revenue‚ marginal cost‚ and demand curves‚ and show the area that represents deadweight loss on the graph. 3. In question 2‚ what would price and output be if the firm priced at socially efficient (competitive) levels? What is the magnitude of the deadweight loss caused by monopoly
Premium Sociology Education Learning
------------------------------------------------- Top of Form 1. (TCO 1) The general concern of economics is with the study of the (Points : 1) | degree of competition in stock and bond markets in the economy. efficient use of limited productive resources to satisfy economic wants. issue of equality in the distribution of income and wealth among households. budget deficits in the domestic economy and trade deficits in the international economy. | 2. (TCO 1) The term scarcity in economics
Premium
MS 3229 2012/2013 SEMESTER ONE – CLASS TEST DEWT/ DCEB 2FT - ENGINEERING MATHEMATICS 2 Time Allowed: 30 mins Instructions To Candidates: 1. 2. 2. 3. 4. 1. All the SP exam rules are to be complied with. A ‘mathematical formulae and tables’ card is provided. All non-exact answers are to be corrected to 3 significant figures All answers are to be written in the answer booklet provided. Answer ALL the THREE questions. The level of pollution (measurements y in coded units) in a city and the corresponding
Premium Mathematics Random variable Statistics
The Haymarket Riot of 1886. In May 4‚ 1886 the Haymarket riot in the police clashed violent whit militant anarchists and labor movement protesters in Chicago. The strong public and state reaction against the Haymarket protesters has been palled the first red scare in U.S history. The Haymarket Riot grew out of labor unrest that had been brewing since the 1870. The different working
Premium United States Trade union Chicago
1a) Explain how the different features of monopolistic competition and oligopoly affect price and output determination in these market structures. Both monopolistic competition (MPC) and oligopoly generally determine price and output based on the profit-maximising condition that marginal cost (MC) equals to marginal revenue (MR). Due to the different features of both monopolistic competition and oligopoly such as the barriers to entry (BTE)‚ which affects the number of sellers as well as market
Premium Monopoly Economics Supply and demand
Micro Chapter 25 Practice Questions Key 1. Derived demand is the demand: A) that arises because of monopoly control of resources in a market. B) for a product based on the tastes and preferences of consumers. C) derived from consumer satisfaction with a product. D) for a resource to produce a product. Answer: D 2. Marginal revenue product is the increase in: A) total revenue from a decrease in the price of the product. B) marginal revenue from a decrease in the price of the product
Premium Employment Economics Supply and demand
ECON 301 — Tutorial 4 Problems for today (from the Workout Book) Problem 4.9 (except d and e) Problem 4.12 Problem 5.1 Problem 5.2 Problem 5.3 H. K. Chen (SFU) ECON 301 — Tutorial 4 October 2‚ 3 1 / 15 Problem 4.9 (a)–(g) Suppose that the utility functions u(x‚ y ) and v (x‚ y ) are related by v (x‚ y ) = f (u(x‚ y )). In each case below‚ write “Yes” if the function f is a positive monotonic transformation and “No” if it is not. (Hint for calculus users: A differentiable function
Premium Utility Preference Consumer theory
Econ Answers Chapter 3 The price of train travel increases by 10% and the demand for train travel falls by 12.5%. The price elasticity of demand for train travel is – -1.25 The short run (retail) supply of freshly cut flowers is much less elastic than that of pot plants because: -florists cannot keep freshly cut flowers as long as pot plants If demand drops to zero at the slightest increase in price‚ demand is: - Perfectly elastic Price elasticity of supply will be greater when: - firms hold large
Premium Supply and demand Elasticity Price elasticity of demand
Microeconomics Topic 6: “Be able to explain and calculate average and marginal cost to make production decisions.” Reference: Gregory Mankiw’s Principles of Microeconomics‚ 2nd edition‚ Chapter 13. Long-Run versus Short-Run In order to understand average cost and marginal cost‚ it is first necessary to understand the distinction between the “long run” and the “short run.” Short run: a period of time during which one or more of a firm’s inputs cannot be changed. Long run: a period of time during which
Premium Costs Marginal cost Variable cost
decisions are made at the margin. How an economy answers these questions: What goods and services will be produced? How will they be produced? Who will receive the goods and services? Role of models in economic analysis. Distinguish between microeconomics and macroeconomics. People must make choices as they try to attain their goals. The choices people make reflect the trade-offs made necessary by scarcity. Become familiar with important economic term: -Scarcity and tradeoff -Opportunity
Free Economics Unemployment Macroeconomics