All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Hire a Tutor
AI Study Help New

Search
Sign In
Register

study help
business
macroeconomics principles

Questions and Answers of Macroeconomics Principles

1. Acme is currently the only grocery store in town. Bi-Rite is thinking of entering this market. They will play the following game. First, Bi-Rite will decide whether or not to enter. If it does
13. Decide whether each of the following statements is true or false for each of three different types of markets: perfect competition, monopoly, and monopolistic competition.a. Firms equate price
12. Suppose the refrigerator industry has an HHI of 2,500 while the aluminum industry’s HHI is 6,850. Is this information sufficient to conclude that the aluminum market is more concentrated than
11. What will happen to a collusive agreement when more firms join the collusion?
10. Suppose there are four firms in a market and each of them sells differentiated products. Does it make sense for these firms to engage in a price war? Why or why not?
9. How do oligopolistic firms that sell differentiated products determine their prices?
8. Under what situation would an oligopoly behave like perfect competition and under what situation would it behave like a monopoly?
7. Consider a noncollusive duopoly model with both firms supplying bottled drinking water. The firms choose prices simultaneously. The marginal cost for each firm is $1.50. The market demand is shown
6. What happens in a monopolistically competitive market when all firms are incurring losses?
5. Monopolistically competitive firms earn zero economic profit in the long run as do perfectly competitive firms. Does this mean that total surplus is maximized in a monopolistically competitive
4. Will a monopolistically competitive firm earning economic profit in the short run continue to earn profit in the long run? Explain your answer.
3. Both monopolies and monopolistically competitive firms set marginal revenue equal to marginal cost to maximize profit. Given the same cost curves, would you expect prices to be higher in a
2. How is a monopolistically competitive market similar to a perfectly competitive market? Do monopolistically competitive markets and monopolies share any common features?
1. How are the products sold by a monopolistically competitive firm different from the products sold in a perfectly competitive market?
13. Two competing firms must choose their quantity of production simultaneously. Each firm can choose either a High quantity of 3 or a Low quantity of 2. The price for both firms is 9 − Q, where Q
12. Consider a game with two players, China and Japan. They play the extensive-form game summarized in the following game tree: Red Line indicates investing in Southeast Asia, Green Line indicates
11. While at the airport, you hear over the loudspeaker an offer to be bumped off your current flight in exchange for $100 travel credit. After it becomes clear nobody will take this offer, the offer
10. Jones TV and Smith TV are the only two stores in your town that sell flat-panel TV sets. First, Jones will choose whether to charge high prices or low prices. Smith will see Jones’s decision
9. Consider a game with two players, 1 and 2. They play the extensive-form game summarized in the following game tree:a. Suppose Player 1 is choosing between Green and Red for his second move. Which
8. Two gas stations, A and B, are locked in a price war. Each player has the option of raising its price (R) or continuing to charge the low price (C). They will choose strategies simultaneously. If
7. Use a matrix to model a two-player game of rock-paperscissors with a payoff of 1 if you win, –1 if you lose, and 0 if you tie.a. Draw the payoff matrix for this game.b. Is there an equilibrium
6. We might suppose a soccer player has three options when taking a penalty kick: Kick right (KR), kick left (KL), or kick down the center (KC). The goalie can choose to dive right (DR), dive left
5. A Beautiful Mind, a movie about John Nash, fails to properly demonstrate a Nash equilibrium. It attempts to do so in a bar scene where men at a bar (Nash and his friends) plan to ask women to
4. It is possible for two-player games to be quite asymmetric: Each player might have a different set of options, and the payoffs may be quite different. Consider the following example between a
3. Samsung and Sony have to decide whether they will increase the spending on research and development (R&D) in order to improve the features of their products that are sold worldwide. If they both
2. Suppose Russia is deciding to Invade or Not Invade its neighbor Ukraine. The United States has to decide to Be Tough or Make Concessions. They will make their decisions simultaneously. Their
1. Suppose the cable TV companies Astounding Cable and Broadcast Cable are in your city. They both must decide on a high advertising budget, a moderate advertising budget, or a low advertising
13. Economic agents (for example, consumers or firms) often do things that at first glance seem to be inconsistent with their self-interest. People tip at restaurants when they are on vacation, even
12. The trust game shown in Exhibit 13.15 is a sequential prisoners’ dilemma; as the payoff matrix shows, the outcome of the game is not socially efficient. What factors could cause this
11. What is meant by the first-mover advantage? How does commitment matter in a game with a first-mover advantage?a. Some games have a first-mover advantage and other games do not. Suppose you were
10. When can backward induction be used to arrive at the equilibrium for a game?
9. Although there are many examples of game theory in the real world, how well do you think specifics like payoff matrices, Nash equilibria, and dominant strategies translate to reality?
8. Suppose that a player has a dominant strategy. Would she choose to play a mixed strategy (such as playing two strategies, each with probability 50-50)? Why or why not?
7. What is the difference between a pure strategy and a mixed strategy?
6. What is a zero-sum game? Can you think of any zero-sum games in real life?
5. How can the tragedy of the commons be modeled as a prisoners’ dilemma game?
4. What is game theory? In what situation is the theory generally applicable?
3. What is commitment? What’s the difference between credible and incredible commitment? Give a real-life example.
2. What do you mean by best response action? Does this concept apply to reality?
1. What is a sequential game? How is it different from a simultaneous move game? Explain.
12. A monopolist with constant marginal cost of $4 faces demand QD = 20 - 2P. This implies that the inverse demand curve is P = 10 - 11/22Q and that the marginal revenue is MR = 10 - Q.a. Sketch
11. Imagine that you arrive at an economics experiment with six other people and are told that you will simulate a market. You will be the only seller. The other five people will be assigned a
10. Consider a small city that is infested by cockroaches. You have just opened the only pest control company in the city. There are two distinct residential areas in the city, high-end area and
9. Yours is the only stall selling orange juice in a school cafeteria. Your cost of producing one cup of orange juice is $0.50. Currently, you are charging $1 for one cup of orange juice from every
8. Suppose that during the weekends, consumers choose to do their shopping in large grocery chains, but during the week, they choose their local corner store to satisfy their immediate needs.a. How
7. The following graph shows the demand, marginal revenue, and marginal cost curves in a monopoly market.a. Identify the profit-maximizing price and quantity for this monopolist.b. What are the
6. Suppose Cattcom is a monopolist providing communication services. The marker demand curve is P = 100 - Q, its total costs are TC = Q 2 + 100, and its marginal cost is given by MC = 10 + Q.a. What
5. A monopolist producing with a constant average cost and marginal cost of $6 has the following demand for its product. Price Quantity $10 1 $9 2 $8 3 $7 4 $6 5a. Calculate total and marginal
4. A profit maximizing translational firm produces upholstery items. It has factories in other countries that specialize in producing seats, padding, springs, and fabric cover. Each factory
3. Textbook publishers hope to maximize profits. Authors, however, face very different incentives. Authors are typically paid royalties, which are a specified percentage of total revenue from the
2. Critically analyze the following scenarios and explain whether you agree or disagree.a. Janet knows a lot of people who do not like Marmite, a yeast extract that is used as a spread on toast. She
1. This chapter explains that a monopoly is an industry structure in which only one firm provides a good or a service that has no close substitutes. Examine the following statements and explain if
12. Why can a government choose to set a price ceiling for natural monopolies?
11. Explain why firms practice the following price discrimination and classify the types of price discrimination.a. A hotel charges walk-in customers a higher price than customers who book rooms in
9. Both competitive firms and monopolies produce at the level where marginal cost equals marginal revenue. Other things remaining the same, why then is the price lower in a competitive market than in
7. What is the difference between a perfectly competitive firm’s demand curve and a monopolist’s demand curve?
6. Prior to the liberalization of the telecommunication market in Singapore, there was only one company, Singapore Telecoms, which provided phone services in Singapore. Did this mean that Singapore
5. There is no difference between a monopoly arising due to legal market power and a monopoly resulting from natural market power. Do you agree? Explain.
4. Examine the following items and state whether each is a legal or natural monopoly:a. Railway infrastructure in the United States.b. A sea water desalinization company in the United States.c. A
2. Use a graph to explain the difference between a competitive firm’s average total cost curve and the average total cost curve of a natural monopoly.
11. For Acme Manufacturing, the marginal product of labor is MPL = 10 − 2L. Acme sells output for $10 per unit.a. Sketch the value of the marginal product of labor (VMPL). How many workers will
10. You run a factory that uses pottery wheels to make pots. You can hire anywhere between 1 and 3 skilled artisans (workers), and you can rent 1 or 2 pottery wheels (machines). Pots sell for $100
9. Joey, Mandy, and Jim have the following labor supply (hours per day, based on hourly pay). Wage Joey Mandy Jim $5 4 0 2 $10 8 4 6 $15 12 8 9a. Who values their leisure most, Joey, Mandy, or Jim
8. The Patient Protection and Affordable Care Act (ACA) requires all employers with at least 50 full-time-equivalent workers to offer health insurance to their full-time employees or pay a fine of
7. Sketch a typical-looking labor market with a downward sloping aggregate VMPL (labor demand).a. Label the part of this VMPL curve that maximizes total productivity.b. Label the part of this VMPL
6. A textiles manufacturer specializing in flower embroidery pays its workers a wage of $10 per hour, with each worker working 40 hours and embroidering 120 flowers per week. A wedding planner has
5. The following table shows the average salary for firstteam football players in sport leagues around the world. The average salary in Great Britain is nearly 16 times larger than the average
4. A friend tells you that he thinks that the salespeople who work at Apple stores are paid very low wages, given their productivity. Dividing Apple’s revenues by the total number of employees
3. You accept a new job for a wage of $30,000 at a newspaper. You join the sales team, which consists of 10 people who try to sell online subscriptions. Each subscription sells for $200. When you
2. Consider the following information for a textile manufacturer operating in a perfectly competitive market: MP = 100 - L, output selling price is $20 per unit, and wage is $100 per worker. Find
1. Suppose that, at your firm, the relationship between output produced and the number of workers you hire is as follows: Labor Total Product Produced 0 0 1 12 2 23 3 32 4 38 5 42 6 45a. Find the
12. Use the concepts studied in this chapter to explain the main source(s) of wealth accumulation over time?
11. Around the world, the wage premium for a skilled worker over a low-skilled worker has been rising rapidly in the past two decades. Some commentators blame the widespread adoption of computerized
10. What is the difference between statistical and taste-based discrimination? The owner of a company that manufactures automobile parts states that it will not hire gay or lesbian employees. Is
9. In developing countries, working as a miner is riskier than working as a security guard. You are the manager of a mining company, and you wish to hire one miner and one security guard. Given the
8. Last year, chief executive officers (CEOs) of large companies earned 354 times the salary of the average worker. Why do companies pay so much to hire a CEO? Why do CEOs get paid so much more than
7. How do labor-saving technologies differ from laborcomplementary technologies? Give an example of each.
5. Consider an industry employing skilled technicians and low-skilled workers together with machines to produce a good. A new technology comes along that performs the low-skill tasks, but needs more
4. We showed in this chapter that a profit-maximizing firm will hire the number of workers such that the wage is equal to the value of the marginal product of labor. But, as we saw in Chapter 6, a
3. Use the concepts discussed in this chapter to explain how a company like The Wisconsin Cheeseman can maximize its profits.
12. The Sensible Estate Tax Act of 2016 slashes the estate tax exemption to $3.5 million and raises the estate tax rate to 45%. Small and family businesses can be particularly hard hit. Family
11. New York raises the price of a pack of cigarettes from $10.50 to $13, adding additional pressure on what is already the costliest cigarette market in the country. However, the sales of bootleg
10. Create a sketch that shows the trade-off between equity and efficiency. Highlight the portion of the curve where there is a fundamental trade-off between equity and efficiency. In this region,
9. Some government agricultural policies involve price controls. Other agricultural policies, however, involve quantity controls.a. The equilibrium price of wheat is $5 and the equilibrium
8. Suppose the supply and demand schedules for cell phones are as follows: Price Demand Supply $2 10 0 $3 9 0 $4 8 0 $5 7 1 $6 6 2 $7 5 3 $8 4 4 $9 3 5 $10 2 6 $11 1 7 $12 0 8a. Make a sketch of
7. This chapter has focused on the effect of taxes. Let’s consider the effect of subsidies, which also generate deadweight loss. A subsidy creates a gap between the price received by sellers and
6. The following diagram shows the effect of a $4 tax.a. Complete the table using the letters from the diagram on the preceding page.b. Based on this calculation, what is the deadweight loss of the
5. Consider the following demand and supply schedules in the market for basketballs in country A.Demand Supply Price 700 0 $2.00 600 0 $2.50 500 100 $3.00 400 200 $3.50 300 300 $4.00 200 400 $4.50
4. Consider the following graph, which shows the equilibrium price and quantity in the plastic boxes market in country X. Suppose the government imposes a tax of 5% on the production of plastic
3. Suppose there are three families with different annual incomes. The Smiths have an income of $20,000, the Johnsons have an income of $70,000, and the Kleins have an income of $210,000. Based on
2. Britain taxed windows from 1696 until 1851. Under the 1747–1757 tax rates, you would pay no tax if your home had 0–9 windows, but if your home had 10–14 windows you would pay a tax of 6
1. The following table gives the 2017 federal income tax rates for a head of the household. Taxable Income Bracket Rate $0 to $13,350 10% $13,350 to $50,800 15% $50,800 to $131,200 25% $131,200 to
15. If your goal is to minimize the deadweight loss from a tax, would you tax goods for which demand is elastic or goods for which demand is inelastic, everything else being equal? Explain using a
14. What is the effect of increasing taxes by the U.S. government on high-income innovators? What will happen if all advanced countries increase their top tax brackets?
12. Look at Exhibit 10.17 in the chapter that shows the tradeoff between equity and efficiency. Is it possible for the government to improve equity and efficiency at the same time? Explain.
11. How can you define corruption? Explain your answers with examples of corrupt activities.
10. If a price ceiling is set above the equilibrium price in the oil market, how does it affect the oil price and quantity?
9. How does a binding price floor affect the consumer surplus, produce surplus, and social surplus?
8. If the demand for a good is more elastic than its supply, how will the tax burden be distributed between buyers and sellers?
7. How does a higher unit tax affect the size of the deadweight loss? Explain your answer.

Showing 800 - 900 of 5352

First
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Last

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Secure Payment

Download Our App

© 2024 SolutionInn. All Rights Reserved