a. How many DVDs should be sold to rent per day to maximize profit? Briefly explain your answer. MR=MC and at
this point on the graph to maximize profit would be x-axis is 55 DVDs per day and y-axis is 1.75 price and cost.
b. What is the economic profit f
Week 9 Quiz
1. Marginal revenue is not equal to price when goods are differentiated.
2. Which firm structure must maintain their product differentiation through advertising?
3. The price of an oligopoly product is likely to be lo
Based on the above graph, answer the following
questions for a monopoly and a perfectly
A. For the monopolist:
I. Profit maximizing output = 20
II. ATC = TC/Q=18
III. AR = TR/Q= 600/20=30
IV. Price = 30
V. Total Revenue = P * Q= 600
Apple and AT& T was caught in a lawsuit about engaging in illegal monopolistic
behavior. It is said that Apple and AT&T had an agreement by not allowing other carriers
to serve the iPhone. The allegations accused Apple of issuing an update that would
Consider the values in the following table for the Winsome Widget Factory.
Fill in the formula for MP and AP at the top of the column in the gray
section within the table.
2. Fill in the missing values for MP and AP in th
Barnes & Noble books -4.00 is elastic
Coca-Cola -1.22 is elastic
Cigarettes -0.23 is Inelastic
Beer -0.23 is Inelastic
Gasoline -0.06 is Inelastic
Tax collections in the order
Gas > Beer > Cigarettes > Coca-Cola > Books
The more elasticity the less
ES2550: Week 4 Finding Optimal Consumption
The following table displays Georges consumption of soda pop and pretzels. The price of each soda pop
is $2.00 and the price of each pretzel is $5.00.
A. Fill in the missing total utility, marginal utility, and m
1. Does this graph display constant or increasing opportunity cost? Explain.
a. This graph displays both constant and increasing opportunity cost. The hours studying are
constant and the grade is an increasing opportuni
The Wacky Widget Factory, a firm, decides to produce 5,000 gadgets instead of 10,000
This is a microeconomic issue because it deals with an individual firm.
The opportunity cost would be 10,000 w
Pharmaceutical Drugs and Drug Companies
Discuss the market for pharmaceutical drugs. Use the ITT Tech Virtual Library to research
information on pharmaceutical companies. Include a discussion of the following points in your
answer, using examples where ap
Part 1: Answer the following questions. Use formulas and show calculations as well as final answers.
a. Does the United States have a comparative advantage in wingdings? Explain. No because the
world price is below their equilibrium price of 10$. It is ch
ES2550: Week 7 Profit Maximization
Task 1: Consider the following table of costs for the Winsome Widget Factory, which operates in
a perfectly competitive market. The market price faced by this firm is $6.00 per widget.
a. Fill in the formula for AFC, AVC
ES2550: Week 6
Calculating and Interpreting the Costs of Production
Part I. Consider the values in the following table for the Winsome Widget Factory.
Fill in the formula for AFC, AVC, ATC, and MC at the top of the column in the gray section within
A. A cup of coffee at a coffee shop
Is the good rival? The good is rival because these goods can be provided best by the private market.
Is the good excludable? Yes the good is excludable because if you dont pay for the good then you dont
consume the good
ES2550: Week 3 Interpreting Demand and Supply
Task 1: Explanation and Analysis
The student will correctly identify changes in market conditions and their effect on equilibrium price and
In the market for dental services, perform the following fo
1. The price of oil increases because OPEC reduces oil production.
1. Decrease in Supply, because they are increasing the price of oil and decreasing in
2. The tax on gasoline consumption increases.
Microeconomics Analysis 1
Event 1: The government passes a law allowing states to pay unlimited unemployment benefits
to all unemployed workers for an unlimited amount of time.
The opportunity cost for unemployment would be hard working
Unit 8 Problem set 1 Perfect Competition
4.3 Page 397
Edward Scahill produces table lamps in the perfectly competitive desk lamp market.
A) Fill in the missing values in the table:
Output per week
Unit 8 Assignment 1: The four market structures
PC =Perfect competition: markets such that no participants are large enough to have the market power
to set the price of a homogeneous product
MC = Monopolistic Competition com
Unit 7 Problem Set 1: Costs, marginal/average product of labor
Fixed costs vs. Variable costs:
Variable costs are expenses that change relative to the activity of a business. Variable cost is the sum
of marginal costs over a
Unit 7 Assignment 1: The Law of Diminishing Returns
The Law of Diminishing Marginal Returns is the law that states as more and more of a variable
input is added to a fixed input in short-run production, then the marginal pro
Unit 6 Assignment Budget and Product Branding
Aldi is one of Americas fastest growing grocery chains and opened its first store in 1976.
Its tragedy is to sell off brand names for cheaper prices. 95% of the products they sel
Unit 3 Assignment 1 Supply and Demand
The videos in this lesson explain how supply and demand work and how they interact to
determine prices and values. Supply and demand is the backbone of economics. Demand is basically
what people want t
Unit 5 Assignment 1: Outsourcing
When the US outsources to other companies, it allows other developing economies to
profit and be able to grow by giving them the opportunities they did not have before. No one
likes to hear that their depar
Unit 3 Problem Set 1: Market Equilibrium, Price Ceilings, and Price Floors
Problem Set 4.12 Page 94
Briefly explain whether each of the following statements is true or false:
a) If the demand and supply for a product both in
Unit 2 Problem Set 1: PPF/Product Markets
Problem Set 1.9 Page 59
Use the data in the table to draw a production possibilities frontier graph. Label the vertical axis score on
economics exam and label the horizontal axis sco