Microeconomics Test #2 Review
Chapter 7: Consumers, Producers, and the efficiency of Markets
- Welfare economics: The study of how the allocation of resources affects
economic well being.
- Willingness to pay: the maximum amount that a bu
Economics 1B03 Exam Review
Chapter 14 Firms in Perfectly Competitive Markets
A perfectly competitive market has the following characteristics:
Many buyers and many sellers in the market
Goods are homogeneous (identical)
1) Demand is Qd = 100 p and supply is Qs = P. In equilibrium, P = 50 and Q = 50
Steps: Find y intercepts.
2) Demand is Qd = 100 P and supply is Qs = P. Suppose the market is not in equilibrium and the
Land Rover North America, Inc.
Case Assignment Questions
1. Why is LRNA launching the Discovery?
The only presence Land Rover had in the North America was its luxury brand Range
Rover. LRNA wanted to penetrate into the leisure market however it was curren