Exam 1
Exam 2
Exam 3
Pot Pourri
Pot Pourri 2
100
What does the law of diminishing marginal utility state?
The utility goes down as we get more of something.
100
What is the equation for income elasticity?
Percent change in quantity / percent change in income
100
What is the dominant strategy?
When one action is always the best given what the other person might do
100
What is the definition of producer surplus?
the difference between the price and what sellers are willing to sell for
100
What type of price discrimination provides 0 consumer surplus?
What is first degree?
200
A move along the demand line alone changes ___ and _____.
What is price and quantity demanded?
200
What is unit elastic?
200
What are the 2 questions you ask when determining what type of good something is?
What is (1) is it excludable? and (2) is it rival?
200
If 2 goods have a cross-price elasticity of <0, then we can say they are ______.
Complements
200
This side always bears less of the tax burden
What is the more elastic side?
300
one additional unit
what is marginal?
300
If the percent change in quantity is 0, and the percent change in price is large, then we can say this good is _____.
What is perfectly inelastic?
300
Why are monopolies able to hold on to profit in the long run?
Because of barriers to entry
300
If revenue = $50, total costs = $40, and opportunity costs = $10, what is the accounting profit?
What is $10?
300
Give an example of a positive externality.
:)
400
How do price floors affect consumer, producer, and total surplus?
Consumer decreases, total decreases, producer depends
400
Why is elasticity if supply always positive?
Because of the law of supply
400
If P = 50, and ATC = 20, what should the perfectly competitive firm do in the short run?
What is continue producing?
400
If cross-price elasticity = 2.5, and the percent change in quantity of the first good = 10%, what is the percent change in the quantity of the related good? What type of goods are these?
Substitutes, 4%
400
Suppose technology increases in the market for apples while also people start to prefer bananas, what happens to price and quantity?
Price --> decreases, quantity --> Kent say
500
If Sarah can produce 8 bananas or 4 apples in one hour, and Will can produce 10 bananas or 6 apples in one hour, who has the comparative advantage of apples?
Who is Will?
500
If total cost changes from 8 to 14, and output changes from 3 to 5, what is the marginal cost?
What is 3?
500
What are 4 differences between monopolies and perfect competition?
:)
500
If MUx = 9, Px = 3, MUy = 10, Py = 5, what should the consumer do to maximize their utility?
What is consume more X?
500
If MPL = 10, w = 2, MPK = 4, r = 4, what should the firm do?
What is buy more labor.