Question 1: You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers?
Question 2: What is a market economy?
Question 3: "If the amount of product differentiation in a monopolistically competitive industry is very small, the outcome in that market will not be very different than if it were a perfectly competitive industry." Explain.
Question 4: Gloria works for a museum in a large city with many other museums. Her boss proposes that the museum should raise the price of admission to increase revenues. Gloria was a good student in her economics principles course. How should she advise her boss.
Question 5: Explain what is meant by predatory pricing, and the inherent difficulties involved with predatory pricing from a firm's point of view.
Question 6: Studies of real world markets suggest that prices and the number of firms of comparable size in a market are:
A) negatively or inversely related.
B) positively related.
C) not related.
D) sometimes negatively or inversely related, but usually positively related.