all Lycamobile "'5' 22:20 (9') @3' X 3.1Ir 3.2 -demand 8: 'firm .und.cons... D/ 3.1 Demand and the rm 1. Why do companies need knowledge of their markets? 2 In perfectly competitive markets, what's the demand curve like for individual rms? 3. Why are small rms price-takers? 4.What price mechanism do most rms experience in practice? 5.Why is little price elasticity od demand better for rms? 6. How can rms make the demand for their products less elastic? 7. How can they make consumers feel that the product doesn't have a close substitute? 3.2 Understanding consumer behaviour I 8. What does the term "utilitf' refer to? I 9. What's marginal utility? I 10. What does the principle of diminishing marginal utility say? I 11. How can marginal utility be measured? I 12. What does it mean that a price is less than your MU? I 13. What is individual people's demand curves for a good equal to? I 14, Why will marginal utility diminish slowly if there are close substitutes? I 15. How do shifts in demand relate to MU? I 16. How is marginal utility different with consumer durables? I 17. Which purchases involve uncertainty? Why? I 18. What's the difference between risk and uncertainty? I 19. What's the law of the large numbers? I 20. How can an insurance company change somebody's uncertainty into risk? I 21. What's adverse selection? I 22.What's moral hazard? I 23. Which three elements does spreading of risks require? I 24. What are independent risks