ECON 545 Business Economics Week 3 Discussions and Quiz Devry

ECON 545  Business Economics

Week 3 Discussions and Quiz

Week 3 DQ 1 Mergers/Acquisitions (Graded)

Have you ever been involved in a merger or acquisition? If so, tell us about your experiences. If not, comment on this week's tutorial, "The Private Sector." Have you ever been involved in a merger or acquisition? If so, tell us about your experiences. If not, comment on this week's tutorial, "The Private Sector."

Week 3 DQ 2 Anti-Trust Policy and Microsoft (Graded)

Is Microsoft a monopoly? In what ways could it be considered a monopoly? What markets are involved? What anti-trust legislation would apply? Is anti-trust legislation “fair” to firms like Microsoft? Why or why not? Is Microsoft a monopoly? In what ways could it be considered a monopoly? What markets are involved? What anti-trust legislation would apply? Is anti-trust legislation “fair” to firms like Microsoft? Why or why not? 

Week 3 Quiz Set 1

Question :           (TCO A) There is a decrease in the cost of labor for producing bicycles.

Question :           (2. (TCO A) Ceteris paribus, Diet Cola Brand X and Diet Cola Brand Y are substitutes in consumption. The price of Diet 

Question :           (TCO A) The number of new home sellers in a given market decreases.

Question :           (TCO A) A market is in equilibrium with equilibrium Quantity of MEQ and equilibrium Price of MEP.

Question :         The following table shows part of the demand function for tickets to an outdoor summer concert by a popular singing group:

Question :     (TCO B) Use a hypothetical example to illustrate whether you agree or disagree with the following statement: “Unemployment will go up more if the demand for labor is inelastic because the demand for labor will decrease more when you have inelastic demand than if demand were elastic.” Explain why, using hypothetical numbers to illustrate your case.

Question :       (7. TCO C)  You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.

Question :           (TCO C)  Answer the next question on the basis of the following cost data for a purely competitive seller:

Refer to the above data. If the product price is $75 at its optimal output, exactly how many units should be produced to maximize profits or minimize losses? How much will the profit or loss be? Show all calculations. (Points : 10)

Question :           (TCO C) (TCO C) Answer the next question on the basis of the following cost data for a purely competitive seller:

Question :           (TCO C) A firm has Total Costs (TC) of $10,000 over the next three months (TOTAL for the 3 months – not per month), of which $6,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm will collect only $5,000 in revenues (TR). So, considering only this information, should they stay in business for those three months or should they close down right now? Provide your reasoning.

Week 3 Set 2

Week 3 : Imperfect Competition – Quiz

1. (TCO A) There is an increase in the cost of labor for producing bicycles.

2. (TCO A) Ceteris paribus, Brand A Plain potato chips and Brand B Plain potato chips are substitutes in consumption. The price of Brand A Plain potato chips increases.

3. (TCO A) The number of new home sellers in a given market decreases.

4. (TCO A) A market is in equilibrium with equilibrium quantity MEQ and equilibrium price MEP.

5. The following table shows part of the demand function for tickets to an outdoor summer concert by a popular singing group:

6. (TCO B) For a given labor supply, would the potential unemployment impact of an increase in the minimum wage be greater in the case of elastic or inelastic demand for labor? Explain why, using hypothetical numbers to illustrate your case. (Points : 10)

7. TCO C) You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.

8. (TCO C) Answer the next question on the basis of the following cost data for a purely competitive seller:

9. (TCO C) Answer the next question on the basis of the following cost data for a purely competitive seller:

10. (TCO C) A firm has Total Costs (TC) of $12,000 over the next three months (TOTAL for the 3 months - not per month), of which $6,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm will collect only $4,000 in revenues (TR). So, considering only this information, should they stay in business for those three months or should they close down right now? Provide your reasoning. (Points : 10)

Week 3 Set 3

Grade Details

Question :           (TCO A) There is a decrease in the cost of labor for producing bicycles.

Question :           (TCO A) Peanut butter and jelly are complements in consumption. The price of jelly falls.

Question :           (TCO A) The number of new home sellers in a given market decreases.

Question :           (TCO A) A market is in equilibrium with equilibrium quantity Q* and equilibrium price P*.

Question :           (TCO B) The following table shows part of the demand for tickets to a local sporting event:

Question :           (TCO B) Use a hypothetical example to illustrate whether you agree or disagree with the following statement: "Unemployment will go up more if the demand for labor is inelastic because the demand for labor will decrease more when you have inelastic demand than if demand were elastic." Explain why, using hypothetical numbers to illustrate your case.

Question :           (TCO C) You have been hired to manage a small manufacturing facility whose cost and production data are given in the table below.

Question :           (TCO C) Answer the next question on the basis of the following cost data for a purely competitive seller:

Question :           (TCO C) Answer the next question on the basis of the following cost data for a purely competitive seller:

Question :           (TCO C) A firm has Total Costs (TC) of $10,000 over the next three months (TOTAL for the 3 months - not per month), of which $6,000 are fixed costs (TFC) for rent on its lease that cannot be broken. If it stays in business over those months, then the firm will collect only $5,000 in revenues (TR). So, considering only this information, should they stay in business for those three months or should they close down right now? Provide your reasoning.