ASSIGNMENT 1‚ March 7 ECO202 Exercise 1. Multiple choice questions 1. Economists normally assume that the goal of a firm is to a. | maximize its total revenue. | b. | maximize its profit. | c. | minimize its explicit costs. | d. | minimize its total cost. | 2. Trevor’s Tire Company produced and sold 500 tires. The average cost of production per tire was $50. Each tire sold for a price of $65. Trevor’s Tire Company’s total costs are a. | $7‚500. | b. | $25‚000. | c
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ES2550 Microeconomics - OL2-MAR1813 Project Part 1 [Author name] [Date] Barnes & Noble books which Estimated Elasticity is -4.00 which I believe is elastic because it has a value greater than 1 decrease in quantity demanded is proportionally greater than the increase in price. Coca-Cola which Estimated Elasticity is -1.22 I believe is elastic because it has a greater then 1 Cigarettes which Estimated Elasticity is -0.25 I believe is inelastic because it has less than 1 in absolute
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CHAPTER Perfect Competition 11 After studying this chapter you will be able to ! Define perfect competition ! Explain how firms make their supply decisions and why they sometimes shut down temporarily and lay off workers ! Explain how price and output in an industry are determined and why firms enter and leave the industry ! Predict the effects of a change in demand and of a technological advance ! Explain why perfect competition is efficient The Busy Bee The busy
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Chapter 9 1. All firms‚ no matter what type of firm structure they are producing in‚ make their production decisions based on where: marginal revenue equals marginal costs. 2. According to the table below‚ when profits are maximized‚ profits are equal to: $2. 3. Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes their wheat taste better and have fewer calories than all other wheat
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Market Structure | NumberofSellers | TypeofProduct | BarrierstoEntry? | DemandCurve | Profit Maximization Condition | Perfect Competition | Many | Homogenous | No | Horizontal (perfectly elastic) | MR = MC | Monopoly | One | Unique | Yes | Downward Sloping | MR = MC | Monopolistic Competition | Many | Differentiated | No | Downward Sloping | MR = MC | Oligopoly | Few | Homogenous or Differentiated | Yes | Downward Sloping | MR = MC | The natural monopoly may be regulated through price‚ profit
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Perfect Competition of Wheat Crops and Variable Cost Basic theme Farmers gamble on deciding what crop to grow from year to year because variable costs can make it difficult for a farmer to break even and make profit. Critical Review Farmers who decided to grow wheat crops in winter are predicted to see profit this spring based on the estimated costs. Farmers have to almost blindly decide on which crop might be most profitable for them to grow because their total variable costs are always changing
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Concentration Ratios ECO204: Principles of Microeconomics Name Instructor: XXXXXXXX XXX March 16‚ 2012 Oligopoly is a very common market form where the sellers are so small in numbers that the actions of any one of them would affect the cost of the products and competition would significantly visible. “Oligopoly is defined as an industry dominated by few firms that‚ by virtue of their individual sizes are large enough to influence the market price” (Case‚ Fair
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macroeconomics is different from microeconomics. Please give examples. What is economics? Before we start to learn about economics‚ we have to understand that what is the different between macroeconomics and microeconomics. Macroeconomics and microeconomics are the main branches of economics. (Karl E. Case‚ Ray C. Fair and Sharon M. Oster (2012): Principles of Economics‚ 10th ed. Global Edition‚ Chapter 1). And‚ I will describe that with examples. Microeconomics seems likes the “trees”. It studies
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Microeconomics There are examples of the use of economics everyday‚ in movies‚ and TV shows. In the movie "Tommy Boy" there are many examples of supply and demand and elasticity. In the movie "Tommy Boy" the main character Tommy has been sent out to sell brake pads to keep the factory running. Tommy and his partner Richard go all around the country to try to sell brake pads‚ but the encounter many problems along the way. After they think they have received enough buyers for their brake pads a persons
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ECON 545 Microeconomic analysis KELLER GRADUATE SCHOOL OF MANAGEMENT Project 1 Situation A My situation has to do with my niece Jenny. Jenny is a super intelligent high-school student who wants to make intelligent choices about her future so she’s decided to call upon me for advice in regard to possibly pursuing a career as a doctor and on the best location to practice medicine. She got wind that I am currently taking a business course in economics and decided
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