Which level indicates the point of maximum economic efficiency? Lowest point on AC curve Lowest point on AVC curve Lowest point on MC curve None of the above A monopoly will usually produce where its demand curve is inelastic where its demand curve is elastic
Suppose the demand for Levi jeans increases by 9%. If the supply elasticity is 0.7 and the demand elasticity is 0.8 what will be the percentage change in the equilibrium price?
1. Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information 2. Governments impose excise taxes on goods that have inelastic demand, such as cigarettes, more often than in other cases. Explain why
You have the following data for the last 12 months' sales for the PRQ Corporation (in thousands of dollars): January 500 July 610 February 520 August 620 March 520 Sep
Which of the following will cause the demand curve for gasoline to shift leftward? a. a decrease in the price of gasoline b. an increase in the price of gasoline c. a leftward shift of the supply of gasoline d. a rightward shift of the supply of cars e. a decrease in the price of bicycles Markets reduce transactions co
List the names of the some companies that are in monopoly business. Explain whether a monopoly could increase its revenue and its profits by charging different prices to different groups of customers. Give a numerical example to illustrate your point OTHER THAN SENIOR DISCOUNTS.
Suppose the price of apples rises from $3.50 a pound to $4.00 and your consumption of apples drops from 30 pounds of apples a month to 20 pounds of apples. Calculate your price elasticity of demand of apples. What can you say about your price elasticity of demand of apples? Is it Elastic, Inelastic, or Unitary Elastic? Be sure t
12. The following payoff matrix represents the long-run payoffs for two duopolists faced with the option of buying or leasing buildings to use for production. Determine whether any dominant strategies exist and whether or not there is a Nash equilibrium. Firm 1 Lease Building Buy Building Lease F1 = 500 F1 = 75
A) Is it possible that you would purchase more of a good if its price rose? Is it possible that you would buy less of a good whose price falls? WHY or WHY NOT? B) What is an inferior good? C) What is the only determinant of demand that can have changed if there is a change in quantity demanded? What if there is a change in d
Suppose the market demand data for the product are as follows: Price Total Quantity Demanded $26 17,000 32 15,000 38
5. How would each of the following changes affect the market for sugar? (I think these are Supply and Demand graphs) a. Development of a new zero-calorie sweetener. b. An increase in the demand for milk. c. A cut in the wages of farm workers.
Demand for advertising is given by: Qd = 30 - 0.0002P + 26V Qd = quantity demanded P = price per minute V = number of viewers All costs are fixed and the goal is to maximize total revenue. Suppose that the number of viewers is 1 million. What price should you charge? How many minutes of advertising to sell? Wha
Consider a service that you buy frequently. (Can use pedicure 2 times per month at $50 for graph and calculation) a. Suppose that the price was 5% lower and all other factors do not change. How much more would you buy each year? b. Using this information, calculate the own-price elasticity of your demand.
Q2: The Snow City Ski Resort cater to both out of town and local skiers. The demand for each market segment as well as the combined market is given in the attached table. The marginal cost servicing either type of skier is constant at $10. There are no fixed costs. a. If the resort charges one price to all skiers, what price
Recently, cellular telephones have become very popular. at the same time new technology has made them less expensive to produce. By assuming the technology advance caused cost curves to shift downwards at the same time that demands was shifting to the right, draw a diagram or diagrams to show what will happen in the short and in
To raise money for a group, we are selling women's shirts. total demand for women's shirts comes from two groups: students and working professionals. The demand curves for two groups are represented as: 1. Students: Qs=120-10Ps (Q sub s=120-10P sub s) 2. working professionals: Qw=48-2Pw a. We may consider buying from ven
A U.S. pharmaceutical company holds a patent on a drug in the U.S. and an analogous patent in Canada. Its marketing department has identified the following inverse demand curves for this drug in the U.S. and Canada: P us =1,000 - Qdus and P can =500 - Qdcan The marginal revenues for each market is
Difficulty identifying formulas for use. also, do multipliers and autonomous spending have to be calculated for item 1/IS curve? For the last item, does autonomous consumption and investment have to be computed to derive? Assume following (equations) summarize/represent structure of economy. If: C=Ca + 0.75(Y-T) Ca=800-25
1. Consider the choices of two groups of women ages 30 to 50. All the women in one group have a college education. All the women in the other group have less than a high school education. Which of the two groups will participate more in the workforce? Which of the two groups will bear a larger number of children on average?
Speedy delivery is a package carrier which serves the Midwest It specializes in the delivery of auto parts to independent auto repair shops. It competes against very large firms like FedEx, UPS, and US Postal. The demand for the firm's services has been increasing as more consumers keep their cars longer and have them fixed r
(Be sure to use a supply and demands diagram) Because bagels and cream cheese are often eaten together, they are complements. a. We observe that both the equilibrium price of cream cheese and the equilibrium quantity of bagels have risen. What could be responsible for this pattern-a fall in the price of flour or a fall in
The United States currently imports all of it's coffee. The annual demand for coffee by US consumers is given by the demand curve Q = 250 - 10P, where Q is quantity (in millions of pounds) and P is the market price per pound of coffee. World producers can harvest and ship coffee to us distributors at a constant marginal (= aver
1. Airline companies sometimes fly airplanes that are one quarter full between cities. Some people point to this as evidence of economic waste. Is this economic waste? Would it be better to have fewer airline companies and more full planes? 2. Draw a diagram to identify a monopolistic competitor that is incurring losses. 3
Dozens of Internet Web sites offer quality auto parts for the replacement market. Their appeal is obvious. Price-conscious shoppers can often obtain up to 80 percent discounts from the prices charged by original equipment manufacturers (OEMs) for such standard items as wiper blades, air filters, oil filters, and so on. With a
Given: Good X and Good Y A consumer's relative preferences change for good X. Use the full indifference curve framework to graphically show, and explain, the effect on the demand curve for good X that these changes in the consumer's relative preferences have.
1. The four major characteristics of a purely competitive market structure are _________________, __________________________, _______________________, ________________________. 2. The demand curve facing a pure competitor is ____________________ elastic; such a demand curve is (horizontal, vertical)_______________
On the basis of three individual demand schedules on the next page, and assuming these three people are the only ones in the society, determine (a) the market demand on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good. Explain the differences,
See attached file for full problem description. I also attached a tip comment. Please follow the comment's method.
Suppose that economists observe that in a closed economy an increase in government spending of $10 billion raises the total demand for goods and services by $30 billion. * If these economists ignore the possibility of crowding out, what would they estimate the marginal propensity to consume (MPC) to be? * Now suppose that th
1. Caviar and champagne are complements. Recently pollution has been a problem in the Volga River, where much of the world's caviar originates. The sturgeon that live in these waters are laying fewer eggs than before. Show graphically and explain the effects on the market for caviar and the market for champagne. 2. Apple an