Taj at 18:48, March 7, 2010

2010-03-07T18:48:18Z

Aschlafly: well done

2009-11-26T03:50:08Z

well done

DuncanB: homework

2009-11-19T01:48:49Z

homework

New page

'''Duncan B.'''

'''Economics Homework 10'''

'''1.''' Externalities are indirect results of the production or use of goods, which are not needed or necessarily wanted, but they exist for many goods.

'''2.''' When total revenue is maximized, it is impossible for you to make any more [[money]]. Therefore, marginal revenue, which is the amount gained for one additional unit, is zero; if you make one more unit you will not be able to gain any more revenue. (In other words, demand exactly equals supply.)

'''3.''' I like question #35, as it is simply a matter of mathematics, and realizing what your answer means, but you have to look at it for a few minutes to understand it. (I looked at it for a few minutes and failed to understand it.)

'''4.''' A positive externality might be the printing press; its inventor, Gutenberg, never became rich and actually had all his equipment taken in a lawsuit, but his invention created an enormous benefit for society. A negative externality might be the noise created when aircraft take off from an airport: people living nearby have to endure the sound although they did not pay for a ticket.

'''5.''' By definition, public goods are available to all as soon as one person pays for them. Private firms usually do not produce them because they can only sell a very few, although there is a high demand, and the majority of the people who can enjoy it do not have to pay the firm.

'''6.''' A and B are substitutes; as the price for good B rises, the demand for good A rises. C and D are complements: as the price for good C increases, the demand for good D increases.

'''7.''' The four factors of production are land, the actual territory owned, capital, the amount of money controlled, labor, the workers, and entrepreneurship, the inventiveness and efforts of the managers.

'''8.''' If P=30/Q, then PQ=30, therefore total revenue (PxQ) is always 30. No matter how much you vary price or output, revenue remains the same, thus the good is unit elastic, meaning its price elasticity is 1.

'''9.''' A public good is a good that is not consumable, but remains basically the same as time goes by.

'''10.''' In question #16, it is nearly impossible to maximize total revenue for a firm; you can always get something for the extra unit. The marginal revenue would drop below marginal costs, but you would still get some revenue.

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 '''1.'''	Externalities are indirect results of the production or use of goods, which are not needed or necessarily wanted, but they exist for many goods.
 '''2.'''	When total revenue is maximized, it is impossible for you to make any more [[money]]. Therefore, marginal revenue, which is the amount gained for one additional unit, is zero; if you make one more unit you will not be able to gain any more revenue. (In other words, demand exactly equals supply.)
 '''3.'''	I like question #35, as it is simply a matter of mathematics, and realizing what your answer means,  but you have to look at it for a few minutes to understand it. (I looked at it for a few minutes and failed to understand it.)
 '''4.'''	A positive externality might be the printing press; its inventor, Gutenberg, never became rich and actually had all his equipment taken in a lawsuit, but his invention created an enormous benefit for society. A negative externality might be the noise created when aircraft take off from an airport: people living nearby have to endure the sound although they did not pay for a ticket.
 '''5.'''	By definition, public goods are available to all as soon as one person pays for them. Private firms usually do not produce them because they can only sell a very few, although there is a high demand, and the majority of the people who can enjoy it do not have to pay the firm.
 '''6.'''	A and B are substitutes; as the price for good B rises, the demand for good A rises. C and D are complements:  as the price for good C increases, the demand for good D increases.
 '''7.'''	The four factors of production are land, the actual territory owned, capital, the amount of money controlled, labor, the workers, and entrepreneurship, the inventiveness and efforts of the managers.
 '''8.'''	If P=30/Q, then PQ=30, therefore total revenue (PxQ) is always 30. No matter how much you vary price or output, revenue remains the same, thus the good is unit elastic, meaning its price elasticity is 1.
 '''9.'''	A public good is a good that is not consumable, but remains basically the same as time goes by.
 '''10.'''	In question #16, it is nearly impossible to maximize total revenue for a firm; you can always get something for the extra unit. The marginal revenue would drop below marginal costs, but you would still get some revenue.

Economics Homework Ten Answers - Student Eight - Revision history

Taj at 18:48, March 7, 2010

Aschlafly: well done

DuncanB: homework