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
microeconomics

Questions and Answers of Microeconomics

9.32. The long-run average cost for production of hard-disk drives is given by where Q is the annual output of a firm, w is the wage rate for skilled assembly labor, and r is the price of capital
9.31. In a constant-cost industry in which firms have U-shaped average cost curves, the long-run market supply curve is a horizontal line. This market supply curve is not the horizontal sum of
9.30. Each firm in the perfectly competitive widget industry produces with the levels of marginal cost (MC)and total variable cost (TVC) at various levels of output Q shown in the following table.
9.29. Support or refute the following: “In the long run the firm’s producer surplus and profits will be equal.”
9.28. The long-run total cost function for producers of mineral water is TC(Q) ! cQ, where Q is the output of an individual firm expressed as thousands of liters per year.The market demand curve is
9.27. It is 2017, and you work for a prestigious management consultant firm whose client is a large agribusiness company that is considering acquiring an ownership stake in several U.S. yellow perch
9.26. Suppose that the world market for calcium is perfectly competitive and that, as a first approximation, all existing producers and potential entrants are identical.Consider the following
9.25. The raspberry growing industry in the United States is perfectly competitive, and each producer has a long-run marginal cost curve given by MC(Q) ! 20 $2Q. The corresponding long-run average
9.24. The global propylene industry is perfectly competitive, and each producer has the long-run marginal cost function MC(Q) ! 40 " 12Q $ Q2. The corresponding long-run average cost function is
9.23. The global cobalt mining industry is perfectly competitive. Each existing firm and every potential entrant faces an identical U-shaped average cost curve. The minimum level of average cost is
9.22. During the week of February 9–15, 2001, the U.S.rose market cleared at a price of $1.00 per stem, and 4 million stems were sold that week. During the week of June 5–11, 2001, the U.S. rose
9.21. Consider a point on a supply curve where price and quantity are positive. Determine the numerical value of the price elasticity of supply at that point when the supply curve isa) vertical at a
9.20. A firm’s short-run supply curve is given by What is the equation of the firm’s marginal cost curve SMC(Q)?
9.19. A competitive industry consists of six type A firms and four type B firms.Each firm of type A operates with the supply curve:Each firm of type B operates with the supply curve:fora) Suppose the
9.18. A firm in a competitive industry produces its output in two plants. Its total cost of producing Q1 units from the first plant is TC1 ! (Q1)2, and the marginal cost at this plant is MC1 ! 2Q1.
9.17. Suppose a competitive, profit-maximizing firm operates at a point where its short-run average cost curve is upward sloping. What does this imply about the firm’s economic profits? If the
9.16. The wood-pallet market contains many identical firms, each with the short-run total cost function STC(Q) ! 400 " 5Q " Q2, where Q is the firm’s annual output (and all of the firm’s $400
9.15. A market contains a group of identical price-taking firms. Each firm has a marginal cost curve SMC(Q) !2Q, where Q is the annual output of each firm. A study reveals that each firm will produce
9.14. A perfectly competitive industry consists of two types of firms: 100 firms of type A and 30 firms of type B.Each type A firm has a short-run supply curve sA(P) ! 2P.Each type B firm has a
9.13. There are currently 10 identical firms in the perfectly competitive gadget manufacturing industry. Each firm operates in the short run with a total fixed cost of F and total variable cost of
9.12. The oil drilling industry consists of 60 producers, all of whom have an identical short-run total cost curve, STC(Q) ! 64 " 2Q2, where Q is the monthly output of a firm and $64 is the monthly
9.11. Newsprint (the paper used for newspapers) is produced in a perfectly competitive market. Each identical firm has a total variable cost TVC(Q) ! 40Q " 0.5Q2, with an associated marginal cost
9.10. The bolt-making industry currently consists of 20 producers, all of whom operate with the identical short-run total cost curve STC(Q) ! 16 " Q2, where Q is the annual output of a firm. The
9.9. Ron’s Window Washing Service is a small business that operates in the perfectly competitive residential window washing industry in Evanston, Illinois. The short-run total cost of production is
9.8. Dave’s Fresh Catfish is a northern Mississippi farm that operates in the perfectly competitive catfish farming industry. Dave’s short-run total cost curve is STC(Q) !400 " 2Q " 0.5Q2, where
9.7. A producer operating in a perfectly competitive market has chosen his output level to maximize profit. At that output, his revenue and costs are as follows:Revenue $200 Variable costs $120 Sunk
9.6. A bicycle-repair shop charges the competitive market price of $10 per bike repaired. The firm’s shortrun total cost is given by STC(Q) ! Q2/2, and the associated marginal cost curve is SMC(Q)
9.5. A competitive, profit-maximizing firm operates at a point where its short-run average cost curve is upward sloping. What does this imply about the firm’s economic profits? Briefly explain.
9.4. A firm can sell its product at a price of $150 in a perfectly competitive market. Below is an incomplete table of a firm’s various costs of producing up to 6 units of output. Fill in the
9.3. A firm sells a product in a perfectly competitive market, at a price of $50. The firm has a fixed cost of $30.Fill in the following table and indicate the level of output that maximizes profit.
9.2. Last year, the accounting ledger for an owner of a small drug store showed the following information about her annual receipts and expenditures (she lives in a taxfree country, so don’t worry
9.1. The annual accounting statement of revenues and costs for a local flower shop shows the following:Revenues $250,000 Supplies $ 25,000 Employee salaries $170,000 If the owners of the firm closed
10. Explain the difference between the following concepts: producer surplus, economic profit, and economic rent.
9. In the long-run equilibrium in an increasing-cost industry, each firm earns zero economic profits. Yet there is a positive area between the long-run industry supply curve and the long-run
8. What is the producer surplus for an individual firm?What is the producer surplus for a market when the number of firms in the industry is fixed and input prices do not vary as industry output
7. What is economic rent? How does it differ from economic profit?
6. Consider two perfectly competitive industries—Industry 1 and Industry 2. Each faces identical demand and cost conditions except that the minimum efficient scale output in Industry 1 is twice
5. How does the price elasticity of supply affect changes in the short-run equilibrium price that results from an exogenous shift in the market demand curve?
4. What is the shutdown price when all fixed costs are sunk? What is the shutdown price when all fixed costs are nonsunk?
3. Would a perfectly competitive firm produce if price were less than the minimum level of average variable cost? Would it produce if price were less than the minimum level of short-run average cost?
2. Why is the marginal revenue of a perfectly competitive firm equal to the market price?
1. What is the difference between accounting profit and economic profit? How could a firm earn positive accounting profit but negative economic profit?
Explain the difference between economic profit, producer surplus, and economic rent.
Calculate producer surplus for the entire market in a short-run equilibrium and a long-run equilibrium.
Define and compute producer surplus for a price-taking firm.
Explain what economic rent is and show graphically how it could arise in a perfectly competitive equilibrium.
Show, using graphs, how the long-run market supply curve is determined in a constant-cost industry, an increasing cost industry, and a decreasing cost industry.
Solve for the long-run equilibrium price, the equilibrium quantity demanded and supplied at the market level, the quantity supplied by an individual firm in equilibrium, and the equilibrium number of
State the conditions for the long-run perfectly competitive equilibrium.
Indicate the difference between the short run and the long run.
Perform comparative statics analysis of the short-run equilibrium in a perfectly competitive market.
Build up the short-run market supply curve from the short-run supply curves of individual firms.
Illustrate graphically an average nonsunk curve and explain how the presence of nonsunk fixed costs affects a perfectly competitive firm’s short-run supply curve.
Derive a perfectly competitive firm’s short-run supply curve from the firm’s profit-maximization problem.
Illustrate graphically the profit-maximization condition for a perfectly competitive firm.
Explain the difference between economic profit and accounting profit.
Describe the conditions that characterize a perfectly competitive market.
11. Michael Tanner and Stephen Moore of the Cato Institute recently calculated the hourly wage equivalent of welfare for a single mother with two children for each of the 50 United States. Their
10. According to economists Henry Saffer of Kean University, Frank J. Chaloupka of the University of Illinois at Chicago, and Dhaval Dave of CUNY Graduate Center, using the criminal justice system to
9. The number of auto accidents per year is the equivalent of a 737-plane crash every day. In the book Why Not?Yale professors Barry Nabalof and Ian Ayres suggest that computers that record driver
8. Why might an economist propose a policy that has little chance of adoption?
7. In a study of hospital births, the single most important prediction factor of the percentage of vaginal births as opposed to Caesarean (C-section) births was ownership status of
6. Technology will soon exist such that individuals can choose the sex of their offspring. Assume that technology has now arrived and that 70 percent of the individuals choose male offspring.a. What
5. According to U.S. government statistics, the cost of averting a premature death differs among various regulations.Car seat belt standards cost $100,000 per premature death avoided, while hazardous
4. The technology is now developing so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the
3. If someone offered you $1 million for one of your kidneys, would you sell it? Why or why not?
2. How much do you value your life in dollar terms? Are your decisions consistent with that valuation?
1. In cost/benefit terms, explain your decision to take an economics course.
5. In his paper “Why Did the Economist Cross the Road? The Hierarchical Logic of Ethical and Economic Reasoning,”economist Andrew Yuengert of Pepperdine University argues that “economists often
4. Critics have pointed out a number of flaws in cost/benefit analysis: It assigns a dollar value to things that are not commodities such as human life; it places a price on public goods that we
3. The text deemphasizes the fact that people are social creatures who feel a need to conform to norms; Post-Keynesians emphasize norms.a. Who shapes these social norms?b. Does society as a whole
2. In standard textbook economic analysis, institutions are often portrayed as creating market failures.a. Give an example of market failure caused by an institution not discussed in the text.b. What
1. Even though a policy’s stated goals may be laudable, its actual outcome can often cause serious problems.a. How much does it matter to an economist how closely a policy’s goals match its
15. What is the basis for the opinions of public choice economists about government’s ability to correct market failures?
14. Anthony Zielinski, a member of the Milwaukee Board of Supervisors, proposed that the county government sell the organs of dead welfare recipients to help pay off the welfare recipients’ welfare
13. Why are economists’ views of politicians cynical?
12. As organ transplants become more successful, scientists are working on ways to transplant animal organs to humans. Pigs are the odds-on favorites as “donors”since their organs are about the
11. Until recently, China had a strict one-child-per-family policy. For cultural reasons, families favor boys and there are now many more male than female children born in China. How is this likely
10. What are three ways in which a well-functioning market might result in undesirable results? ( LO23-3 )
9. In “Valuing Reduced Risks to Children: The Case of Bicycle Safety Helmets,” economists Robin R. Jenkins, Nicole Owens, and Lanelle Bembenek Wiggins estimate the value of the lives of children
8. If one uses a willingness-to-pay measure in which life is valued at what people are willing to pay to avoid risks that might lead to death, the value of a U.S. citizen’s life is $2.6 million, a
7. Economist Steven D. Levitt estimated that, on average, for each additional criminal locked up in the United States, 15 crimes are eliminated. In addition, although it costs about $30,000 a year to
6. In the 1970s legislators had difficulty getting laws passed requiring people to wear seat belts. Now not only do most people wear seat belts, many cars have air bags too. Do people value their
5. Should the buying and selling of body organs be allowed Why or why not? ( LO23-2 )
4. In the early 1990s, the 14- to 17-year-old population fell because of low birth rates in the mid-1970s.Simultaneously the combined decisions of aging baby boomers to have kids resulted in an
3. Would all economists oppose price controls? Why or why not? ( LO23-1 )
2. Would it be wrong for economists to propose only Pareto optimal policies? ( LO23-1 )
1. Could anyone object to a Pareto optimal policy?Why? ( LO23-1 )
Q-10 In what way does government positively contribute to economic policy? In what way does it negatively contribute to economic policy?
Q-9 True or false? If someone chooses to sell himself into slavery, the individual, and thus society, is better off.
Q-8 A cocaine addict purchases an ounce of cocaine from a drug dealer. Since this was a trade both individuals freely entered, is society better off?
Q-7 True or false? The goal of society is efficiency.
Q-6 When using marginal cost/marginal benefit analysis, do “other things remain constant”?Explain.
Q-5 Why should you be very careful about any cost/benefit analysis?
Q-4 If the table in the text correctly describes the valuation individuals place on life with regard to smoke detector purchases and premium tire usage, how would you advise them to alter their
Q-3 When can “being mean”actually be “being nice”?
Q-2 How does a radical analysis of labor markets differ from a mainstream analysis?
Q-1 If someone suggests that economists should focus only on Pareto optimal policies, how would you respond?
LO23-4 Explain why most economists are doubtful government can correct failure of market outcomes.
LO23-3 Describe three types of failure of market outcomes.

Showing 3500 - 3600 of 7550

First
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
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