Microeconomics Questions and Answers

Barb and Barry (BB) left their jobs to start a bakery in downtown Charlotte in 2010. Barb used to be an accountant and made $75,000 a year; Barry was a gym teacher at Cary High and made $60,000. ?...

. Stephanie produces earrings. She sells each pair of earrings for $5. The table below shows how many pairs of earrings can be produced, depending on the number of workers Stephanie hires. Fill in t...

(3) Perfect Competition (i) What is implied about efficiency if the average cost of producing a good exceeds the price people are willing to pay for it? (ii) What happens to the resources that were us...

(2) Perfect Competition (i) Using the global Corn market consider the impact of increasing demand for Ethanol made from corn in the short and long run. (ii) Why do the same farmers always complain of ...

. Which of the following best represents the pricing behavior of firms in an oligopolistic market? O Stay*Put Clothespins takes the market price of clothespins as given and produces the amount of cl...

. Determine whether the following ﬁrms operate in an industry that is considered a perfectly competitive market or pure monopoly. a. Katherine's Orchard sells apples in Washington. a state in whic...

. The graph below depicts the revenue and cost curves for Pike's Flower Shop. Pike's Flower Shop 20 18 MC "g 15 ATC E 14 MR 8 12 Ave :1 5 10 a? 13 8 3 £2 6 3 4 o 2 C D 25 50 75 100 125 150 175 20...

. The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly competitive firm producing different quantities of apple pies. The market price of apple pies is $7.0...

Back in 2013, Foxtel had just finished acquiring Austar, its major competitor. Foxtel was enjoying near total dominance in the market. There were other players such as Optus TV and iiNet, however, the...

Joanna calculated that last year her income by fell by 4% and that the price of biscuits increased by 16%. As a result of those changes Joanna's consumption of biscuits fell by 40% Calculate her price...

The table below shows the total cost (TC) and marginal cost (MC) for Baker Street, a perfectly competitive firm producing different quantities of apple pies. The market price of apple pies is $6.00 p...

Microeconomics Question Use the figure below to answer the following question. The equilibrium point in the market is the point at which the S and D curves intersect. Assuming equilibrium price P 1...

(6) The price of good Y decreases by 8% and the quantity of good X sold increases by 4%. What is the cross-price elasticity of demand for good X with respect to good Y ? How are good X and good Y rela...

An American touring Europe was surprised to discover that the distance from London to Belfast is 521Km and the cost of airfare for a return journey was £198, while the distance from London to Paris i...

Use diagrams to explain what happens when the patent of a product expires, and the firm operates facing new competition from other producers entering the market and offering differentiated varieties o...

The current Covid-19 pandemic has affected various economic sectors around the world. Choose two (2) examples of consumer goods and services in the output market in Malaysia that has a clear impact ...

Jack's Convenience Store is open for 20 hours a day, Monday through Saturday. There is always one employee in the store. The store employs three full-time employees, who work 40 hours per week and ear...

5. Based on your understanding of the logic and insights of the Cournot model, which of the following changes to the basic model would likely not reduce the profitability of firms in equilibrium? a. R...

1. The table below shows the global market for the mineral sand, zircon. It shows the world price and the quantity of zircon bought for each year from 1992 to 1996. Because zircon is resistant to corr...

Use the graph below to answer questions 4 through 6. Labor Market 20 SL 4 10 10 Which of these would increase the market equilibrium wage above $10? A. An increase in overtime hours worked B. An incre...

Suppose the price elasticity of demand for beef is about 1.6. Other things equal, this means that a 20 percent increase in the price of beef will cause the quantity of beef demanded to Multiple ...

In a Bertrand market where all firms sell an identical good and have identical production technologies with constant marginal costs then introducing an additional firm will lead to a lower prices in t...

Which of the following is one of the five fundamental questions? A) Who will get the output B) Should these products be free to the public C) Which government agency should decide on output amou...

You want to explore the attitudes of your students toward working in groups. Describe how you would construct a survey to carry out this action research project. Be sure to address the following: The ...

Suppose the income elasticity of demand for toys is -2.5. This means that a 3 percent increase in income will decrease the purchase of toys by 1.2 percent. a 3 percent increase in income will decre...

Answer the question based on the following data. Price Per Unit Quantity Demanded Per Unit of Time $ 20 12 18 17 16 20 14 24 12 30 10 36 8 40 6 44 4 48 What is the price elasticity of demand ove...

Hilary and Maria are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Hilary takes 4 hours to ...

The following graph is the production possibilities curve of a nation. Which of the following combinations would be unattainable? Multiple Choice 4 drill presses and 1 bread 7 drill presses and ...

A nation can produce two products: tanks and autos. The table below is the nation's production possibilities schedule. Production Possibilities Product A B C D E F Tanks 0 1 2 3 4 5 Autos 1,000 ...

The table shows an indifference schedule for several combinations of X and Y. Combination Quantity of X Quantity of Y a 20 1 b 16 2 c 12 3 d 10 4 e 9 5 How much of X is the consumer willing to g...

1). Homework: Philadelphia Foods + Perfect Competition a). Where does a competitive firms demand curve come from? Explain why a competitive firm is a price taker. b). The Philadelphia wat...

Mexico represents a small part of the world orange market. Draw a diagram depicting the equilibrium in the Mexican orange market without international trade. Identify and label the equilibrium price, ...

Suppose that Ms. Thomson is currently exhausting her money income by purchasing 10 units of A and 8 units of B at prices of $8 and $2, respectively. The marginal utility of the last units of A and B a...

Suppose a credit union has checkable deposits of $500,000 and the legal reserve ratio is 10 percent. If the institution has excess reserves of $10,000, then its actual reserves are Multiple Choice $60...

NOTE: . indicates missing value, do not include those quarters when you create the data in Excel. Year Q1 Q2 Q3 Q4 2014 . . 1,513 1,060 2015 1,431 1,123 994 679 2016 1,485 886 1,256 975 2017 1,256 1,1...

2). The Recession and Harley Davidson Motorcycles (There are no quantitative calculations in this question, but I expect you to use the data presented as I guide when you provide me your thoughts a...

This question is based on the following table which shows the output combinations of food and clothing available to an isolated city: Possibilities ...

This question is based on the following table. Household Income Average number of car per household $0 --- $29,999 ?...

Marginal Resource Cost Exercise 1 (Algo) Stephanie is looking to hire workers to help her produce earrings. The current hourlyr market wage rate is $16 per worker. Assume this is a perfectly competiti...

Wk 4 — Apply: Quiz [due Day 7] 0 Saved Help Save 8. Exit Submit 4 The table shows a consumer's utility schedule. Total Number of Units Consumed Utility —u A —_ eBook 3 —_ Based on the data i...

Walmart offers quantity discounts on its family photo holiday cards (cards that it prints with the customer's family photo on it). The price for the first 30 cards is $0.40 per card, and for any addit...

Part a) Under what market structure does the market for hand sanitizers fall into? Justify your answer by referring to the four key characteristics of the relevant market type (6 marks) Part b) Let us...

I need to answer the below questions in reference to the chart shown. Please Help. Thanks Based on the outcome of the simulation, was the sale price you set the same as the equilibrium price? Refer to...

Which of the following statements is correct ? Multiple Choice If supply decreases and demand increases, equilibrium price will rise. If supply decreases and demand decreases, equilibrium quantity w...

week 4 apply quiz. A child is given $4 of pocket money to be spent on either hard candies or chocolates Chocolates cost 20 cents and hard candies 95 cents each. The marginal utilities derived from eac...

A consumer is in equilibrium and is spending income in such a way that the marginal utility of product X is 20 units and that of Y is 35 units. If the unit price of X is $4, then the price of Y must b...

Huxley lost $60 in the stock market. According to behavioral economics research, how much of a gain would he have to experience to offset the feeling of loss and have no net change in utility? Multipl...

How is it possible that a firm in a perfectly competitive market is able to sell all it wants without having to change the price? What does this tell us about the elasticity of demand faced by the fir...

5. Comparative Advantage The following table describes the production possibilities of two cities in the country of Baseballia: Pairs of Red Socks per Worker per Hour Pairs of White Socks per Worker p...

Assume that Abby, Ben, Clara, Joe, and Matt are the only citizens in a community. A proposed public good has a total cost of $1,000. All five citizens will share an equal portion of this cost in taxes...

Answer the question based on the following information for a public good. P a and P b are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than...

4. Production Possibility Frontier An economy consists of three workers: Kevin, Rajiv, and Yakov. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Kev...

4. Production Possibility Frontier An economy consists of three workers: Bob, Eric, and Kenji. Each works 10 hours a day and can produce two services: mowing lawns and washing cars. In an hour, Bob ca...

Besides airline pricing and movie tickets, give an example of the practical use of third-degree price discrimination. Be sure to explain the consumer types that are being identified, which receive the...

Imagine owning a business business. How would price elasticity of demand impact the pricing decisions of business? What are the determinants of price elasticity of demand? Identify at least th...

Answer the question based on the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and c...

Answer the question based on the following information: Suppose 20 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and c...

14 Suppose Ryan and Rita were randomly shown the numbers 68 and 21, respectively, and then asked to estimate the price of an item about which they have relatively limited knowledge. According to findi...

y Summative Assessment Quiz [due Day 7] Saved Help Save & Exit Sub A consumer's weekly Income is $350, and the consumer buys 6 bars of chocolate per week When weekly income increases to $380, the ...

Not sure about this one.. The income elasticity of demand for food is roughly 1. Suppose a consumer's monthly income is $2,000, of which 20 percent is spent on food. If the income of this consumer dou...

Assume that a consumer purchases a combination of products Y and Z and that the MU y/ Py = 25/5 and MUz/P z =40 /8. To maximize utility without spending more money, the consumers should Multiple choic...

Answer the question based on the table below showing the marginal utility schedules for product X and prouduct y for a hypothetical consumer. The price of product x is $3.50 and the price of product w...

A Cournot Oligopoly (duopoly) exists where the market demand function facing each firms is P = 4 - (Q 1 + Q 2 ) , where Q = (Q 1 + Q 2 ) and the MC facing each firm is zero. If each firm take...

A Cournot Oligopoly (duopoly) exists where the market demand function facing each of the two firms is P = 4 - (Q 1 + Q 2 ) , where Q = (Q 1 + Q 2 ) and the MC facing each firm is zero. If the...

Allocative Efficiency associated with competitive equilibrium is a condition where Question 25 options: Producer plus consumer surplus equals zero The price of output is greater than consumer surplu...

For a firm in a perfectly competitive industry Question 26 options: Its MC curve is its supply curve its ATC is its supply curve its long-run ATC curve is its long-run supply curve its long-run...

As a firm differentiates its product relative to its competitor's product Question 27 options: Its cost curves shift downward relative to those of its competitors Its demand curve becomes more negativ...

When is it desirable for society to allow a monopoly to operate? Question 29 options: When the monopolist is self-regulated. When there are large cost savings from economies of scale When government...

Market power results in more restricted output and higher price than would prevail in a perfectly competitive industry. However, some market power is desirable for society if Question 30 options: go...

If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm supply function), P = 10 +100Q i What is the short-run industry supply function? (where lowercase s...

Entry into and exit from a perfectly competitive industry will: Allow efficient managers to earn economic profits Drive price to minimum Long-Run ATC Drive price to minimum Long-Run AVC Produce econom...

Which is NOT TRUE for a profit maximizing monopolist? Question 5 options: P > MC The firm operates on the demand curve where |e| < 1 As Q increases, MR falls faster than Average Revenue ...

The supply of product X is inelastic (but not perfectly inelastic) if the price of X rises by Multiple Choice 3 percent and quantity supplied rises by 4 percent. 9 percent and quantity supplied rises ...

Suppose the income elasticity of demand for toys is +1.2. This means that Multiple Choice a 5 percent increase in income will increase the purchase of toys by 6 percent. a 5 percent increase in income...

The supply of product X is elastic if the price of X rises by Multiple Choice 2 percent and quantity supplied rises by 3 percent. 10 percent and quantity supplied rises by 10 percent. 6 percent and qu...

Which of the following is not a typical characteristic of a market system? A. Government ownership of most property resources B. Private property C. Competition in product and resource markets D. Self...

Assume that a consumer has a given budget or income of $10 and that she can buy only two goods, apples or bananas. The price of an apple is $1.00 and the price of a banana is $0.50. What is the slope ...

Which of the following is most closely related to the economic principle that sometimes government intervention is necessary to improve market outcomes: a. limiting the increase in the price of gas ca...

Please Help. Suppose that the price of product X rises by 12 percent and the quantity supplied of X increases by 15 percent. The coefﬁcient of price elasticity of supply for good X is Multiple Choic...

Answer please Aplia Homework: Banking and the Money Supply 3. The money creation process Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. Th...

Which of the following events would not cause the demand curve for olives to shift? a. The number of people who purchase olives decreases. b. The price of olives rises. c. The price ...

Suppose that a market is initially in equilibrium. The initial demand curve is Q D = 90 - P while the initial supply curve is Q S = .5P. Suppose that the government imposes a $3 tax on this market.?...

Suppose that a market is initially in equilibrium. The demand curve is Q D = 90 - P while the supply curve is Q S = .5P. Suppose that the government imposes a $3 tax on this market. What is the cha...

Your friend is very happy because his real wage has increased unexpectedly. Explain, using the concepts of real income, and nominal income, anticipated and unanticipated inflation rate, how is this ...

3). Mobile Platforms, Smart Phones and Tablets a Few Years Ago (all data from the year 2017:: US numbers are included in the world data as well) *Apple's iOS mobile platform is used in 44% of all US s...

Which of the following is one of the Five Fundamental Questions? A. How much should society save? B. Which products will be in scarce supply and which in excess supply? C. What goods and services will...

2). Saudi Arabia's Petroleum a). For many of the last 50 years, Saudi Arabia has restricted their supply of Petroleum to the market for below their capacity. Why did they do this and why have they ...

Q4. [Loss Aversion and Trade) A popular idea in economics (based on the so-called Coase Theorem) is that regardless of goods are allocated in an economy, people will trade their way to an efficient eq...

Suppose that a private college offers a variety of (in-person) skills training courses. The college currently offers 12 courses per term, with an average enrolment of 45 students per course, and charg...

In an isolated town, two pizza shops open. Their owners Mario and Luigi are deciding what price to set on the menu. Before the opening night of both stores they discuss their pricing and work out that...

The demand and the supply for pork meat4 in Meatistan are given by QD = 9 - 0.25P, and QS = 2P We assume that the market for pork meat is perfectly competitive. Assume that the Government puts a tax o...

Assume that the Government puts a tax of 10$ per kg on all pork meat consumption. a) Graphically show the effect of the consumption tax on the equilibrium price and quantity. b) Compute the price paid...

The demand and the supply for broccoli1 in Veganstan's closed economy are given by QD = 60 - 2P, and QS = 38P. We assume the market is perfectly competitive. 1: Compute the closed economy equilibrium ...

The demand for pumpkins in Halloweenstan is given by: QD = 60 - 2P 1: Compute the price elasticity of demand first when the quantity of pumpkins demanded is Q1 = 20, and then when the quantity demande...

Suppose the Hookturnistanian Government is considering how much to invest in expanding public transport to reduce traffic congestion. An expert committee has advised the government that the total bene...

Assume that while allowing for free trade with Beefland, Veganstan's policy makers decide to give to all broccoli producers in Veganstan a subsidy of 0.5 $ per kg produced. For Veganstan: a) gr...

For the following questions, we assume that Veganstan's policy makers open up the country's economy for trade. Veganstan's neighbouring country, Beefland, can produce and sell unlimited quantities of ...

Consider the production function Q = f( K, L) = K½L½. a). What kind of production function is this? What is the firm's output when it uses 9 units of labor and 4 units of capital? b). Rou...

The production of batteries for eBikes is polluting and causes a negative externality whose marginal costs are estimated at 2q. The inverse demand function and the supply function for the monopolist w...

This is the question: The lesson notes describe both positive and negative externalities. An interesting situation occurs when there is a positive externality. This is interesting because economists s...

enny runs a birdhouse manufactruing company. the number of birdhouses she can make with each number of laborers is shown in the table below labor - birdhouses 0- 0 1-6 2-11 3-15 4-18 5-20 6-21 the pri...

jenny runs a birdhouse manufactruing company. the number of birdhouses she can make with each number of laborers is shown in the table below labor - birdhouses 0- 0 1-6 2-11 3-15 4-18 5-20 6-21 the ma...

An oligopolistic industry consists of only two firms, Angel& Co and Barton Inc. The two firms agree to collude on a level of output at 20 units per firm, which leads to a market price of $25. Afte...

Refer to the following graphs to answer the question below. Select the graph that best shows the changes in demand and supply in the beef market if a new diet fad favoring beef consumption becomes hug...