Market Structure Summary Sheet
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2. The relationship between the price of starfish and the quantity demanded is inverted because
as the quantity is increased the price is decreased.
3. At a price of 5, 3 dozen starfish are demanded.
4. slope= change y/ change x
Taking points (0,8) and (9
The single most important model used in microeconomics is the study of supply and demand.
Simply put, this is a graphical explanation of how prices fluctuate in the marketplace. The model
depends on how much people want (dema
Before 1996, no one company could own more than one media type in a major
market (for example, a city). In 1996, the Federal Communications Commission
(FCC) voted to deregulate the media industry. Companies can now own the local
television station, newspa
1. Marginal cost is the additional cost added from any action or activity, this could be the
amount of gas used to get me to the college campus everyday from the high school.
Directional cost is just the out-of-pocket cost; this could be the amount of tim
If you stay in school, you are more likely to get hired over a high school dropout. Those
who are able to quickly adapt themselves and apply their knowledge to new technologies
will have a higher income rate than those who have no idea how to
1. If Enviromax wants to maximize profit, what price would they charge?
2. What is their profit per unit if they are operating at the profit maximizing
3. Assume now that the demand for recycled paper increases and that the
company is earning shor
1a.This would be a positive externality since the business is giving a service, and there is a positive
impact for other businesses as a result. This is true because the seven other businesses
dont pay for the service but get the service anyways. This is
1. Profit maximization happens at the quantity of where marginal revenue = marginal
cost. Those two curves intersect (MC=MR) at Q = 10 and P = 30. Therefore, to maximize
they would charge 30.
2) At Q = 10, the average total cost per unit is 27. They charg
1.An electrical monopoly is considered a natural monopoly. First, a standard profit
maximizing monopolist graph is drawn where profit maximization is at MR = MC. The
monopoly would produce to the point where its marginal revenue = its marginal costs.
Which of the primary economy types is most efficient and which is most equitable (fair)?
The economy type that is most efficient and equitable economy type is the command economy.
Due to fact the government makes all decisions on production; there is no c
1. A) Graph attached
B) Japan has the absolute advantage for the CDs and DVDs because they can produce
CDs than the U.S. and 20 more DVDs than the U.S.
C) 100/50=2 Japan is twice as fast at producing CDs than DVDs
For each DVD Japan makes they los
Ms. Equilibrium is happy to help you get started. She tells you that you need to go through the
information found here, as it will be very important for your job.
Whether we are dealing with macroeconomicsthat is, huge economi