Principles of Economics 103 Second Problem Set
Professor Coolidge Spring, 2008
9 pts. 1. Caitlin must decide how much to spend on books, ice cream, and workouts at the gym. The price of books at her favorite thrift store is $1 each, ice costs her $
Which of the following statements most likely lies within the realm of microeconomics?
An increase in labor costs will increase the additional cost of producing another
Regardless of whether you are looking thro
Marginal thinking is best demonstrated by:
choosing to spend one more hour studying economics because you think the
improvement in your score on the next quiz will be worth the sacrifice of time.
Economists refer to
John Merritt Howard
Chapter 2 Terms
Scientific method the name for the ongoing process that economists use to (1) develop models of the
world and (2) test those models with data
Model simplified description, or representation, of the world. Sometimes, eco
Introduction to Economics
Chapter 1 & 2 give a brief overview of the U.S. economy and its relation to the
world economies. In addition, these chapters introduce the basic ideas of the
Economists Tool Kit or the methods employe
PHL 218 Homework 2
I. Symbolize the following claims, using the letters indicated.
P = We plant perennials; A = We plant annuals; S = We plant from seed; C = We plant from cuttings.
1. If we plant from seed, well have to plant annuals.
2. We can plant per
LOGIC PROBLEMS. chapter one
1. If no reasons have been given for a claim's acceptance, the
claim should always be rejected.
2. If poor reasons have been given for a claim's acceptance, the
claim should always be rejected.
3. Sometimes arguments con
California State University, Chico
College of Humanities and Fine Arts
Department of Philosophy
PHIL 102-101 ONLINE
Ed Pluth, Professor and Chair
1. A firm that holds a monopoly position in the market place is
a price maker
a price taker
subject to infinite market forces
1. What qualities would ideally suit a monopolistic firm with regard
An Extended Duopoly Game
John C. Eckalbar
Abstract: The author shows how principles and intermediate economic students
can gain a feel for strategic price setting by playing a relatively large oligopoly
game. The author constructs a playoff matrix and dis
In the lower of the above graphs, draw MC and ATC. Make an effort to locate the curves at the appropriate heights. (Hint: The curves in the lower graph come from slopes. You can estimate a slope by laying a ruler down in the upper graph and estimatin
A monopolist's demand curve is given in the top graph, and the raw data for the curve is given in Table 1. Fill in the values of TR in Table 1. The values for TC are also given in Table 1. Use what you have at this point to find the profits at all le
The Temptation to Price Discriminate
Consider the monopolist shown below. If the same price must be charged to all buyers, then P0 is the best price.
But the temptation to price discriminate, i.e, to charge different pri
Beginning Bundling Theory
Bundling is the selling of two or more goods as a packaged unit. There are lots of examples:
Operating systems are bundled with web browsers. Word processing programs with spreadsheets.
Hardware with software. Hardw
May 24, 2004
Another Year at the Federal Trough: Farm Subsidies for
the Rich, Famous, and Elected Jumped Again in 2002
Brian M. Riedl
Taxpayers funding Washingtons $20,000-perhousehold budget have long known they are not getting their moneys wort
Firms in an oligopoly cannot maximize their profits by following simple rules, such as
marginal revenue equals marginal cost. Instead, they are forced to think strategically. When they
contemplate an action, such as a pr
For many practical problems, it matters a lot just how responsive buyers are to changes in P.
Examples from class: effect of tuition increase on enrollment, effect of oil supply interruption on
price of oil.
When you look at the g
Chapter 7, Cost Curves
Weve taken D & S about as far as we can. To get more insight, we need more tools. Heres the
sort of thing we are interested in:
1. Do the firms make a profit?
2. What happens in the long run?
3. What if the market is n
Stop Supporting Capitalism! Start Building Socialism!
Part I CAPITALISM
1 From Primitive Communism to Class Society
2 Marx on Capitalism
3 Capitalism, by Its Advocates
4 Capitalism, by Its Reformist Supporters