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Economics Homework Ten - Model (view source)
Revision as of 16:54, November 26, 2009
, 16:54, November 26, 2009added answers from paper homwork
7. List the four factors of production and give a very brief explanation of each.
7. List the four factors of production and give a very brief explanation of each.
:Land - the firm must make a decision as to where they will provide their goods and services. They wouldn't want to sell where the demand for the good or service wasn't very high; they would choose a place with higher demand. (Lucia)
:Capital - money (Sarah)
:Labor - how many workers do you need (Anthony)
:Entrepreneurship - efforts of the owners and managers to bring the business to life (Tim)
8. Mathematically prove (or disprove!) the answer to the question on the midterm exam about P=30/Q.
8. Mathematically prove (or disprove!) the answer to the question on the midterm exam about P=30/Q.
9. Provide, in your own words, the best definition of "public good" that you can.
9. Provide, in your own words, the best definition of "public good" that you can.
:A good that cannot in any way be excluded from someone. For example, a park. (Kate)
10. Find a question on the midterm that describes a situation that would be unusual in the real world, and explain why the scenario of the question is unrealistic.
10. Find a question on the midterm that describes a situation that would be unusual in the real world, and explain why the scenario of the question is unrealistic.
:Question 21 on the girl’s midterm exam is an example of an unusual situation. Question 21 is a graph of perfect substitutes and in real life it is very unusual to have something that can perfectly substitute for another. Everything is different and one item that could make you as perfectly satisfied as another is almost unheard of. (Veronika)
:Question 21 on the girl’s midterm exam is an example of an unusual situation. Question 21 is a graph of perfect substitutes and in real life it is very unusual to have something that can perfectly substitute for another. Everything is different and one item that could make you as perfectly satisfied as another is almost unheard of. (Veronika)
:"#16: If a firm's total revenue were maximized then its marginal revenue must be zero." This is an impossible situation because a firm's revenue is never maximized; a firm can always produce one more unit to make more revenue. (Will)
11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)
11. Revisit the problem on the midterm about the price ceiling (with the graph), which asked how much the shortage would be. Provide the correct answer and explain why. (If you answered it correctly, then provide a similarly difficult substitute question for this.)
:The correct answer is shortage of 600. A shortage occurs because a price ceiling increases demand, without adjusting output- in fact, output will ... decrease, because producers are now making less money. Specifically, the shortage can be measured by measuring the quantity between where a line representing the price ceiling intersects the supply curve and demand curve. (Addison)
:The correct answer is shortage of 600. A shortage occurs because a price ceiling increases demand, without adjusting output- in fact, output will ... decrease, because producers are now making less money. Specifically, the shortage can be measured by measuring the quantity between where a line representing the price ceiling intersects the supply curve and demand curve. (Addison)