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After checking the prices of the coins, would you say the market is close to being perfectly competitive? Why or why not?
How do you find the most efficient output, and how do you find the most profitable output?
If your monthly sales were $4,000, what would you do (a) in the short run and (b) in the long run?
Is the analysis for maximizing profits the same as that for minimizing losses? Explain why it is or why it isn't.
Suppose that price were higher than AVC but lower than ATC. What should the firm do in the short run and the long run? Explain your answer.
If the perfect competitor is losing money in the short run, what happens in the market to drive up price?
Can you think of any dot-coms that may be considered perfect competitors? Explain why a perfectly competitive firm will not advertise.
Practical Application: Why might a firm produce at a loss in the short run rather than shut down? Make up an example to illustrate your answer.
Practical Application: Calculate the economic cost of your college education. How much more is it than the accounting cost?
If demand is elastic and price is raised, what happens to total revenue? Can you prove this?
Find the cheapest possible round-trip New York-Los Angeles flight that leaves New York on December 1 and returns from Los Angeles on December 8.
Practical Application: During recessions Walmart's low prices attract more customers. Explain why this means that Walmart is selling inferior goods.
Each one of them gives you a quote at least $1,000 more than you think you should pay. Explain what you will do in terms of demand and supply.
How could an economic crisis in Southeast Asia cause the price you pay for gasoline to fall? Show this graphically.
Why does the demand curve slope downward? Why does the supply curve slope upward? And why would you hate that if you were a consumer?
Using supply and demand curves, demonstrate the report's likely effect on the price and quantity of this toothpaste's sales.
Draw a graph for each example showing what happens to price and quantity supplied.
Why is industry supply more elastic in the long run than in the short run, and more elastic in the short run than in the market period?
If your income rises by 20 percent and you decide to increase your purchases of clothing by 10 percent, find your income elasticity for clothing.
If elasticity of demand is 2 and price is raised from $10 to $11, by what percentage will quantity demanded fall?
Calculate elasticity; state whether demand is elastic, unit elastic, or inelastic; and find how much total revenue was when price was $40 and $42.
Draw a demand curve with unitary elasticity everywhere. (Hint: Think about total revenue.)
What would you do in the market period, the short run, and the long run?
In the year 2020 the world supply of oil peaks and production continues for the next decade at that level. How much will the price of oil be in 2030?
If the demand for a good is perfectly elastic and its price is $20, how much would its price be if its supply doubled?