STUDY GUIDE FOR THE MID-TERM EXAM (MICROECONOMICS)
1. What are the ten principles of economics? Ch. 1- PG 3
People Face Trade-offs
The cost of something is what you give up to get it
Rational Peopl
3.10
1. If Enviromax wants to maximize profit, what price would they charge?
$20
2. What is their profit per unit if they are operating at the profit maximizing output?
$2 per unit.
3. Assume now that
1. Create a graph for the demand for starfish using the following data table:
Quantity/Price of
Starfish
Quantity (X
axis) of
Starfish in
dozens
Price (Y axis)
of Starfish
per dozen
0
8
2
6
3
5
5
2
7
Microeconomics Final Exam Study Guide
The guide is set up as a series of questions about the concepts and terms covered on
the final exam. They are in no particular order.
1. What is price elasticity
Supply and Demand Guide
To solve the homework problems do the following:
1.
2.
3.
4.
Identify the determinant change
Shift the appropriate curve in the correct direction
Change price appropriately
Mov
1. a. An electrical monopolist would determine its profit maximizing price
and output level by
finding the point where MC=MR and go up from that point until the demand
curve is
reached. That would be