economics
conasn
m3_problem_sets.xlsxModule 3 Problem Sets
| Principles of Economics | |||||
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Question #1
| If price were increased from $40 to $42 and quantity demanded fell from 50 to 45 units, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic; and find how mow much total revenue was when price was $40 and $42. |
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Question #2
| Draw a perfectly inelastic supply curve. |
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Question #3
| 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 #4
| (a) Illustrate a tax increase. (b) State what happens to equilibrium price and quantity. |
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Question #5
| 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 #6
| Suppose Table 1 shows your demand schedule for cans of soda. (a) What is the total utility from three cans of soda? (b) What is your marginal utility from the third can of soda? ( c) If price were $1.50, how much would your consumer surplus be? |
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Question #7
| 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 #8
| How much is the firm's most efficient output? |
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Question #9
| If price is $180, how much is total profit? |
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Question #10
| At an output of 9, MC = 20 and AVC = $25. At an output of 10, MC = $32 and AVC = $26. What is the lowest price the firm will accept in the short-run? |
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Question #11
| The perfect competitor operates at the __________________ point of his or her average total cost curve in the long-run. |
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Question #12
| A monopoly is a firm that has ____________________substitutes. |
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Question #13
| The five barriers to entering a monopolized industry are: | |
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Question #14
| There are basically only two justifications for monopolies: | |
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Question #15
| The main economic criticism of monopolies and big business in general is that they are ________________________________. |
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Question #16
| (a) Calculate the firm's total profit. (b) If the firm operates at optimum efficiency, how much will its output be? |
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Question #17
| If the firm operates at optimum efficiency, how much will its output be? |
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Question #18
| The most crucial feature of monopolistic competition is _____________________________________. |
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Question #19
| Price discrimination occurs when a seller charges _________________________ for the same good or service. |
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Question #20
| The monopolistic competitor's demand curve slopes ________________________________________. |
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Question #21
| One of the outcomes of the kinked demand curve is ____________________________ prices. |
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Question #22
| U.S. Steel and a few cigarette companies were all engage in _________________________ to attain their economic ends. |
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Question #23
| The oligopolist ________________________ at the minimum point of his or her ATC curve. |
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Question #24
| One of the outcomes of the kinked demand curve is ___________________ prices. |
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Question #25
| The most important cartel in the world today is __________________________________________. |
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