Problem set 3

 

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>Module

3

Problem Sets

Principles of Economics
Name:	Emily Cruz
Date:

Question #

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Question #1: Draw a perfectly inelastic supply curve.
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Question #2

and price is lowered from $20 to $19, by what percentage will quantity demanded rise?

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Question #2: If elasticity of demand is 0.

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Question #3

Question #3: (a) Illustrate a tax increase. (b) State what happens to equilibrium price and quantity.
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Question #4: If the price of eye surgery falls by 50-percent and the quantity of contact lenses demanded falls by 25-percent, find the cross-price elasticity of demand for theses two goods.

Question #5

Question #5: A perfect competitor would never charge more than market price because ________________; the perfect competitor would never charge less than market price because ________________________.

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Question #6

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Question #6: How much is the firm’s most efficient output?

Question #7

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Question #7: How much is output at (a) The break-even point and (b) The shut-down point.

Question #8

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Question #8: The perfect competitor operates at the __________________ point of his or her average total cost curve in the long-run.

Question #9

Question #9: A monopoly is a firm that has ____________________substitutes.
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Question #10

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Question #10: The five barriers to entering a monopolized industry are:

Question #11

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Question #11: There are basically only two justifications for monopolies:

Question #12

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Question #12: The main economic criticism of monopolies and big business in general is that they are ________________________________.

Question #13

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Question #13: Price discrimination occurs when a seller charges _________________________ for the same good or service.

Question #14

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Question #14: The monopolistic competitor’s demand curve slopes ________________________________________.

Question #15

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Question #15: U.S. Steel and a few cigarette companies were all engage in _________________________ to attain their economic ends.

Question #16

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Question #16: The oligopolist ________________________ at the minimum point of his or her ATC curve.

Question #17

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Question #17: The most important cartel in the world today is __________________________________________.