Ask Question, Ask an Expert


Ask Microeconomics Expert

problem 1: How does the marginal social benefit curve of a common resource compare to the marginal social benefit curve of positive externality from a mixed good? Highlight the differences via graphs.

problem 2:

a) Assume that the demand for saline solution is perfectly inelastic for contact lens wearers. If the government imposes a tax on saline solution, what occurs? Be sure to tell what happens to the price paid by the buyers and discuss the incidence of the tax.

b) If income tax rates on labor income are reduced, what is the effect on the labor supply and the labor supply curve? What is the effect on the equilibrium quantity of labor hired?

problem 3: Describe:

a) Tragedy of commons.
b) Free rider problem.
c) Diminishing marginal utility.
d) Diseconomies of scale.
e) Tax incidence.
f) Elasticity.
g) Gains from trade.
h) Rent- seeking in monopoly.
i) Public goods.

problem 4:

a) If the price elasticity of supply for corn is 3.12, then is the supply of corn elastic or inelastic?
b) If the cross elasticity of demand between peanut butter and milk is -1.11, then are peanut butter and milk substitutes or complements?
c) The income elasticity of demand for movies in the United States is 3.41. If people's incomes decrease by 1 percent, what is the decrease in the quantity of movies demanded?

problem 5: Ayanna grows herbs. Last year she grew 2,000 pounds of herbs in a year while using 250 square feet of land and 1 worker. This year she doubled her land to 500 square feet, doubled her workers to 2, and grew 4,500 pounds of herbs. She sells her rare, organic herbs for $50 a pound. She pays her a worker $25,000 a year and rents her land for $100 per square foot for a year. These are her only costs.

a) What was Ayanna's total cost last year and this year?
b) What was Ayanna's average total cost last year and this year?
c) Did Ayanna experience economies or diseconomies of scale?

problem 6:

a) What is a prisoner's dilemma?
b) Why would a firm in a monopolistically competitive industry advertise?

problem 7: Through graphs describe the relationship between the price, P and the average total cost, ATC, for a firm in perfect competition when it earns an economic profit; earns a normal profit or zero economic profit and; incurs an economic loss? Why can't the firm continue making economic profits in the long run?

problem 8:

a) To maximize the utility, why does a consumer consume the combination of goods which equates marginal utility per dollar from the different goods instead of just equating the marginal utility of the different goods?
b) Why does gold, which is a relatively non-essential item, have a higher price than water, which is essential to life?

problem 9: Describe what are price ceilings and price floors and how they affect the market for a good or service. As well show through graphs, if they cause any inefficiency in a perfectly competitive market.

problem 10: Before first Gulf War, Kuwait had the capacity to produce a certain amount of oil from its oil wells. After the war, it found that capacity greatly diminished as the oil wells were on fire. Draw Kuwait's PPF before and after the war, assuming that the only two goods produced are oil and food. Further assume that setting the oil wells on fire did not affect Kuwait's ability to produce food. describe why the PPF before the war is distinct from the PPF after the war. If instead, Kuwait had faced economic growth how would it reflect on the PPF?

problem 11: "Price discrimination permits a monopoly to raise its economic profit by capturing part of the consumer surplus and turning it into economic profit. Such a situation though leads to a deadweight loss to the society as a whole in the long run." Is the previous statement correct or incorrect? If the statement is correct, why is it important in understanding firms' behaviors?

problem 12: Describe the three arguments used to promote trade barriers and two instruments to impose these trade restrictions in a country.

problem 13: How can a nation and its producers determine whether or not it has a comparative advantage in producing a particular good or service?

1856_price and cost.jpg

problem 14: The above figure displays the market for the three moving companies in a small nation. If the movers act as perfect competitors, what is the price per mile and the number of miles per year? If the movers collude and act as a single monopoly, what is the price per mile and the number of lines per year?

problem 15:

a) "The marginal rate of substitution of the good measured along the x-axis increases as a consumer moves downward along an indifference curve." Is the previous statement correct or not?
b) describe the consumer equilibrium in the indifference curve or budget line model.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91734

Have any Question? 

Related Questions in Microeconomics

1 the crr model european claimconsider the crr model of

1. The CRR model: European claim. Consider the CRR model of stock price S with T periods and parameters d (a) Consider the European claim X with expiry date T and the payoff X = g(S r ) = 1/S T 1[k,∞)(S T ). Show that th ...

Meqa assignment 2its been three weeks since you started

MEQA Assignment 2 It's been three weeks since you started working for BioMed and there's still no trace of Selwyn. That means you're still BioMed's resident economic expert. Harry the CEO was pleased with your earlier wo ...

Assignmentfirms use inputs workers machinery natural

Assignment Firms use inputs (workers, machinery, natural resources) to produce outputs (goods and services). For example: General Motors uses steel, rubber and other materials to create automobiles. A pizza restaurant tu ...

Microeconomicsdiscussion forumnote the video has closed

Microeconomics DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. Note: The video has Closed C ...

Goal construct a case studyresearch paper that examines a

Goal: Construct a case study/research paper that examines a firm in the U.S. from a microeconomic standpoint and provide suggestions based on your findings. Step 1: Choose a firm for your focus. In addition to picking a ...

Discussion questionplease read thoroughly and provide

Discussion Question Please read thoroughly and provide references • Manufactures of smartphones design products to be interactive with consumers. To remain competitive, designers are focused on getting a new product to m ...

Assignment questionsque1 why validation of the software

Assignment Questions: Que.1 Why validation of the software requirement is necessary? List some conditions that should be checked in the validation phase of software requirement. Que.2 Six Sigma is used to reduce the defe ...

Assignmentthe agile approach towards system analysis and

Assignment The agile approach towards system analysis and development emphasizes iterative and incremental development, in which requirements and solutions evolve through collaboration. Prepare a 1000 word essay on the r ...

Short-run economic fluctuationsplease have by 800 pm west

Short-Run Economic Fluctuations Please have by 8:00 pm west coast time cailfornia time 12/13/2016. Plagrism free, orignal work, and refs. APA format double space. please ask questions right away please dont wait to the l ...

Assignmentreview the cba provided in the resources section

Assignment Review the CBA provided in the resources section between the Trustees of Columbia University and Local 2110 International Union of Technical, Office, and Professional Workers. Describe how this is similar to a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen