WUCB111 Summer 2013 Tutorial Questions[1]

2 what isthe golden rule ofprofit maximization

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Unformatted text preview: stions for Review Problems and Applications Additional Questions CH 14: 1, 3, 4, 5, 8 CH13: 1, 3, 8, 9 Chapter 14 CH 14: 1, 3 1. 2. What is the “golden” rule of profit maximization? Explain why the rule maximizes profits. What does ZERO economic profit mean? Additional Questions MARKET STRUCTURES INTRODUCTION: Complete the following table FEATURES OF MARKETS COMPETITIVE [PERFECT or PURE] MARKET MONOPOLY MARKET MONOPOLISTIC COMPETITIVE MARKET OLIGOPOLY MARKET 1. Number of sellers 2. Types of product 3. Barriers to entry/exit 4. Market power over price Of 4 above, the MOST important FEATURE is … Economic Profit in long run Example of an industry WUCB111 – Introduction to Microeconomics Tutorial Questions Summer 2013‐14 Week 10 Chapters 15 and 17 Key Concepts Questions for Review Problems and Applications CH 15: Monopoly, natural monopoly, price discrimination CH 17: competition laws, privatisation, Competition and Consumer Act CH 15: 1, 2, 6 CH 17: 1, 2 CH 15: 2, 6 CH 17: 1, 2 Week 11 Chapters 16, 17 and 18 Key Concepts CH16: oligopoly, collusion, cartel, game theory, dominant strategy, Nash Equilibrium CH17: predatory pricing, tying CH 18: monopolistic competition Questions for Review CH16: 2, 3, 4 CH17: 5 CH 18: 2, 6 CH16: 7, 8, 11 CH17: 3 CH18: 1, 4, 6 REVIEW IN CLASS TEST 2 Chapters 10 and 11 CH10: Externality, internalising an externality, Coase Theorum CH 11: common resources, public goods, free‐rider problem, tragedy of the commons, excludability of goods, rivalry of goods Problems and Applications Week 12 Key Concepts Questions for Review CH10: 1, 2 CH11: 1, 4 Problems and Applications CH10: 4, 6 CH11: 2,6 Additional Questions 1. 2. 3. How can a tax be used to correct a negative externality? Explain why the optimal level of pollution (carbon) is not zero for society? Draw a supply and demand diagram to show the effect of a pollution (carbon) tax on the mining industry. WUCB111 – Introduction to Microeconomics Tutorial Questions Summer 2013‐14...
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This document was uploaded on 04/04/2014.

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