Firms and consumers are _
All firms sell an _and consumers view the
product sold by all firms as the same indifferent.
_ buyers and sellers _
about the market (e.g. price, quality)
Total Revenue, Total Cost, Profit
The firms goal is to_.
Profit = Total revenue Total cost
the amount a
from the sale
of its output
value of the
inputs a firm
Exercise for Chapter 4
1. Hula hoop fabricators cost $100 each. The Hi-Ho Hula Hoop
Company is trying to decide how many of these machines to buy.
HHHHC expects to produce the following number of hoops each
year for each level of capital
Exercise for Chapter 3
The marginal product of labor (measure in units of output) for a certain firm is
MPN = A*(100 - N) where A measures productivity and N is the number of labor
hours used in production. The price of output is $2.00
Exercise for Chapter 2
ABC Computer Company has a $20,000,000 factory in Silicon Valley. During
the current year ABC builds $2,000,000 worth of computer components.
ABCs costs are labor, $1,000,000; interest on debt, $100,000; and taxe
Exercise for Chapter 7
1. Money demand in an economy in which no interest is paid on money is
= 500 + 0.2Y 1000i.
a. Suppose that P = 100, Y = 1000, and i = 0.10. Find real money demand,
nominal demand, and velocity.
b. The price lev
Price Elasticity of Demand (
In Figure 4.1(a), an increase in supply brings
A large fall in price
A small increase in the quantity demanded
Price Elasticity of Demand
In Figure 4.1(b), an i
ncrease in supply bri
A small fall in price
A large in
HW2 Due 11/29/2016 Tuesday in the beginning of class
1. Please show that when imposing A Tax on Buyers:
Perfectly inelastic demand: Buyers pay the entire tax.
Perfectly elastic demand: Sellers pay the entire tax.
Perfectly inelastic supply: Sellers
List some examples of the scarcity that you face.
: 50 50 50
2. Apple Inc. decides to make iTunes freely available in unlimited quantities.
a. Does Apples decision change the incentives that people face?
b. Is Apples dec
HW1 Due 10/18/2016 Tuesday in the beginning of class
1. List some examples of the scarcity that you face.
Examples of scarcity common to students include not enough income to
afford both tuition and a nice car, not enough learning capacity to study
Department of Political Science Chap.5 Economics Name
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) If the marginal cost of producing hair styling decreases, then the efficient quantity of hair s
Rate of Return Analysis
Contemporary Engineering Economics
Chapter Opening Story Return
from a Pay-By-Touch System
Rate of Return
This is the return that a company
would earn if it invested in itself,
rather than investing that mo
The maximum amount to invest in the prevention program is
Selecting n = 0 as the base period, we can calculate the
equivalent present worth for each option as follows:
Option 1: $140,000
Option 2: $32,639(P/A, i%,
Long-Run Effects of Money on
Real GDP and the Price Level
In the long run, real GDP equals potential GDP.
An increase in the quantity of money at full employment
increases real GDP and raises the price level.
The money wage rate rises, which decreases sho
Classical Growth Theory ( )
Classical growth theory is the view that real GDP growth
is temporary and that when real GDP per person rises
above the subsistence ( ) level, a population explosion
brings real GDP per
Marginal Utility and
After studying this chapter you will be able to
Explain the connection between utility and indifference
Explain why maximizing utility is the same as choosing
the best affordable point
One reason that organizations need performance measures is to drive strategies
and organizational change.
Data and measurement are equivalent.
Information is derived from the