Problem Sets
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M3_problem_sets_solved_011718.xlsxModule 3 Problem Sets
| Principles of Economics |
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Question #1
| Question #1: Draw a perfectly inelastic supply curve. |
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Question #2
| Question #2: If elasticity of demand is 0.5 and price is lowered from $20 to $19, by what percentage will quantity demanded rise? |
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Question #3
| Question #3: (a) Illustrate a tax increase. (b) State what happens to equilibrium price and quantity. |
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Question #4
| Question #4: If the price of eye surgery falls by 50-percent and the quantity of contact lenses demanded falls by 25-percent, find the cross-price elasticity of demand for theses two goods. |
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Question #5
| Question #5: A perfect competitor would never charge more than market price because ________________; the perfect competitor would never charge less than market price because ________________________. |
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Question #6
| Question #6: How much is the firm's most efficient output? |
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Question #7
| Question #7: How much is output at (a) The break-even point and (b) The shut-down point. |
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Question #8
| Question #8: The perfect competitor operates at the __________________ point of his or her average total cost curve in the long-run. |
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Question #9
| Question #9: A monopoly is a firm that has ____________________substitutes. |
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Question #10
| Question #10: The five barriers to entering a monopolized industry are: |
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Question #11
| Question #11: There are basically only two justifications for monopolies: |
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Question #12
| Question #12: The main economic criticism of monopolies and big business in general is that they are ________________________________. |
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Question #13
| Question #13: Price discrimination occurs when a seller charges _________________________ for the same good or service. |
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Question #14
| Question #14: The monopolistic competitor's demand curve slopes ________________________________________. |
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Question #15
| Question #15: U.S. Steel and a few cigarette companies were all engage in _________________________ to attain their economic ends. |
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Question #16
| Question #16: The oligopolist ________________________ at the minimum point of his or her ATC curve. |
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Question #17
| Question #17: The most important cartel in the world today is __________________________________________. |
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