MICROECONOMICS 7 CHAPTER 6 HOMEWORK (10 Points) 1' List the characteristics of a perfectly competitive market Give an example Why do rms in perfectly competitive markets have no control over the price of their products? 2. Mike has a part-timejob and earns $50 per week. He spends his entire income on two goods: Hamburgers (which cost $2 each) and movie rentals (which cost $3 each). Draw Mike's budget constraint. Suppose that Mike decides to purchase 10 hamburgers and rent 10 movies this week. Is this choice within Mike's opportunity set? Show this choice on your graph. 3. Bush receives a weekly allowance of $40 from his parents that he uses to purchase two goods: Pokemon cards (which cost $5 per pack) and comic books (which cost $4 each). Draw Bush's budget constraint and write his budget equation Show what would happen if Bush's parents lower his allowance to $30 per week. 4. The table below shows how the total utility that Clinton derives from watching basketball Games changes as he watches more and more games each week: Basketball Games Total Utility Marginal Utility Fill in the table above. Draw the total utility and marginal utility curves. Do the numbers in the table support the law of diminishing marginal utility? Explain. (to Q a Dashboard Calendar To Do Notications Inbox 6:54 MICROECONOMICS -... 5. Refer the information provided in the table below. If the price of a beer is $4, the price of a dozen oysters is $12, and Tyler has $28 of income, find Tyler's utility-maximizing combination of beers and oysters per day. Dozens of Oysters Marginal Utility Per Total Utility Marginal Utility per Day Dollar 60 2 104 3 134 4 152 5 160 Number of Marginal Utility Per Beers per Day Total Utility Marginal Utility Dollar 40 W N - 70 94 4 14 5 128 N 000 3 n Dashboard Calendar To Do Notifications Inbox