One.

When firms set diffrent prices for the same goods or services this is an example of price DISCRIMINATION?

True

False

^

15

For substitute goods is the cross price elasticity is:

A.) A positive value

B.) equal to one

C.) a negative value

D.) not enough information is given

16

A perfectly competitive market structure faces:

A.) A price floor

B.) market shortage

C.) A price ceiling

D.) market surplus

17

Oligoplistic market structures do not engage in game theory?

True

False

18

A perfectly competitive market structure and a monopolistic market structure are diffrent in terms of:

A.) Profit maximization

B.) Size of the firm

C.) Demand curve

D.) Efficiency

19

How does a monopolistic competitive market structure differ froma perfectly competitive market structure

A.) A monopolstic market structure is a price taker

B.) A monopolistic competitive market structure has many sellers and buyers

C.) A monopolistic competitive market structure faces a downward sloping demand curve and differentiated products or services

D.) A monopolistic competitive market structure and a perfectly competitive market structure maximize profits diffrently

20

All of teh following are characteristics of a perfectly competitive market structure except:

A.) Goods and services are differentiated

B.) All firms are price takers

C.) Little to no barriers to entry

D.) Similar vendors

21

Goods and services thatare essential to ones well being and daily life, the elasticity of demand would be:

A.) Positive

B.) Elastic

C.) negative

D.) inelastic

22

An oligopololistic market structure faces a(n):

A.) Downward sloping demand curve

B.) Upward sloping demand curve

C.) Kinked demand curve

D.) Inelastic demand curve

23

High barries to entry is at highest level, marginal utility is:

A.) Equal to zero

B.) Falling

C.) Equal to one

D.) Rising

24

Total surplus is equal to:

A.) Total surplus minus producer suplus

B.) Producer surplus minus consumer surplus

C.) Consumer surplus plus producer surplus

D.) Total surplus minus consumer surplus

25

What is the cause of scarcity?

A.) OPEC limiting the supply of oil

B.) Based on consumers who have unlimited wants

C.) Firms that employ first degree price discrimination

D.) based on consumers who have limited wants

Two.

I am in a basic macroeconomics class and have been asked to write paper. I am suppling the paper directions and my paper. I need someone to read through the paper and check or edit to see if the gives an understanding of the econimc principles. Also to check to see if the information is correct or makes sense. A suggestion on how to end the paper with a conclusion would be great.

Here is the paper directions:

For this assignment, you need to pick a topic that has been or will be covered in class. Write paper about an example of the topic you chose in either current times or history.

What I am looking for in this paper is your understanding of the economic principles discussed in class. I won't consider points for grammar or spelling.

What needs to be included and what you will be graded on in the paper is the historical context of the event

(why it happened), explanation of what your topic is and how it affects or is affected by other economic factors

(think unemployment and inflation, printing money, savings and investment, standard of living and GDP, etc.),

and economic or historical results of the event.

If it is a current event instead of the historical results, I would like you to use the economic topics covered in class

to project(forecast) what you think would happen in the future.

My Paper:

How COVID Has Impacted and Affected Our Society

Due to the pandemic, the decline in AD is due to the decline in consumer spending on identity, ie Y = C + I + G (X-M) indicates a leftward shift in the AD curve. People have reduced their aggregate consumption in the economy. The rise in unemployment has also caused the wages rise as their bargaining powers have increased. Unemployment benefits don't just affect supply, they also affect demand. Why? The benefits allow workers to demand higher wages than they otherwise would, which drives up their wages. All of these factors lead the economy into recession.

In the short run loss of work, reduced income, possible loss of home, depressed of education, young students are suffering a social connection, fighting alienation of connection. Which are causing rates of depression and drug use to rise. As a result, people are human resources, therefore causing a social economic downturn.

Since there is a disruption of supply as well, as the short-run the AS curve is also impacted. This causes the AS curve to shift to the left. AD leftward shift is more than that of AS contraction. In other words, the new equilibrium is carried out at lower prices and quantities, which means that the economy has shrunk from its original position. The decline in employment leads to a decline in output, while the price of real GDP declines. This resulted in a leftward shift of AS as well as the production process was also affected due to complete lockdown.

However, change in aggregate spending is more than disruption in supply, hence shift in the AD curve will be greater. This has reduced both the equilibrium prices and quantity.

This has impacted the nation's output, employment, and income. Real GDP has decreased. Since there is a trade-off between inflation and unemployment in the short-run according to the Phillips curve, a rise in unemployment will put downward pressure on prices/ inflation. Reduction in employment and income affects the supply and demand and social sides of the Nation. For example, salespeople lose their jobs and therefore lose their jobs, and their demand for products decreases. As a result, depression can lead to suicide. This process affects the future resources of mankind. Less supply in the labor market.

To take the economy, out of recession, the government has decided to implement expansionary fiscal policy by cutting tax rates and increasing government expenditure. This will increase interest rates and output in the upcoming time. A rise in employment by any effort is likely to cause inflation to rise due to employment inflation relation in Philip curve negative relation between inflation and unemployment. expansionary fiscal policy instrument is(government expenditure rise (G )rise / Tax Cut/any G rise under the fiscal policy will usually result in a rise in output through the induced transfer and again the tax cut will cause less tax on the consumer so the disposable income will be at a higher level than the worse situation causing a rise in spending. The same tax cut will positively induce the producer as they will have more profit to reinvest (but this is under an assumption that producer will reinvest i.e. (I) will be rising. This situation will cause a rise in the interest rate thus will affect the saving in a positive way and at the same time, higher domestic interest will cause inward capital flow from abroad.

consumer side will be directly affected through tax cut as the disposable income will rise and hence more spending is expected this is a cyclical way of recovery. The same was done during the 1930 crisis and even during the 2008 crisis. Rising interest rates have the tendency to mope up the available cash(saving rise) in the economy so at the same time the monetary policy tuning is required.

Also, the central bank is pursuing expansionary monetary policy by cutting discount rates, decreasing reserve requirements, and conducting open market operations. This will increase the money supply in the economy and will cause higher output and lower interest rates.

Under expansionary Monetary policy as it is also required to manage the rising interest rate due to expansionary fiscal policy to manage the Investment decision that is in direct relation to the interest rate and the MEC (marginal efficiency of capital) and speculation due to rising interest rate will lower down the cash flow in an economy. Therefore, expansionary monetary policy is a necessary condition.

Under this cut in policy interest rate will affect the investment decision of producer and is likely to raise the employment and thus will improve the supply and at the same time will give low-cost credit to the consumer for spending with this economy will improve on employment and also the direct effect of a rise in price due to the employment rise will affected offset. It is the same as the history achieved through quantitative easing during the 2008 crisis

No one knows that the time of the pandemic will end, there is no guarantee that the vaccine will have 100% impact, there will be no long-term impact, and it will not cause secondary infections to people. Because this is an unknown virus, we do not know whether different strains of the virus will mutate, and this mutation may have a greater impact on the mutation.

Three.

1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by a monopolist. Let fixed cost be $10,000 and Marginal Costs (MC)=20Q.

a) What is the profit maximizing output?

b) What is the monopolist's total revenue at the profit maximizing output?

c) How much profit is the monopolist earning?

d) Assume the government breaks up the monopolist in order to create perfectly competitive market of identical firms. Assume the MC curve is now the industry supply curve. By how much has consumer surplus increased from breaking up the monopolist?

e) What is the deadweight loss associated with the monopolist relative to the perfectly competitive market?

2. Suppose a firm's fixed costs are $50 and its marginal cost of producing q units is MC = 10 + 2q. The industry demand curve is given by P = 40 - QD (where quantity is given in thousands of units). If the firm operates in a perfectly competitive industry and the price of the good is $30, how many firms produce this good in the short run?

3.

Price: Quantity:

8300

7400

6 500

5 600

4 700

3 800

2 900

1 1000

The monopolist has fixed costs of $1,000 and has a constant marginal cost of $2 per unit. If the monopolist were able to perfectly price discriminate, how many units would it sell?

Show the work for each question.