Economics Homework Ten Answers - Student Ten - Revision history

Taj: categorizing

2010-03-07T18:50:24Z

categorizing

Aschlafly: good work

2009-11-26T04:07:31Z

good work

AnnaM at 15:14, November 19, 2009

2009-11-19T15:14:07Z

AnnaM at 15:03, November 19, 2009

2009-11-19T15:03:46Z

AnnaM at 15:01, November 19, 2009

2009-11-19T15:01:17Z

AnnaM at 14:54, November 19, 2009

2009-11-19T14:54:34Z

AnnaM: Created page with '--~~~~Aran M'

2009-11-19T14:54:05Z

Created page with '--~~~~Aran M'

New page

--[[User:AnnaM|AnnaM]] 09:54, 19 November 2009 (EST)Aran M

← Older revision		Revision as of 18:50, March 7, 2010
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	:Good work. 57/60.--[[User:Aschlafly\|Andy Schlafly]] 23:07, 25 November 2009 (EST)		:Good work. 57/60.--[[User:Aschlafly\|Andy Schlafly]] 23:07, 25 November 2009 (EST)
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		+	[[Category:Economics Homework Ten Answers]]

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 '''1. In your own words, try to give a better definition of "externalities" than provided by this Lecture.'''
 The positive or negative effect of a transaction on persons other than the buyer and seller.
 '''2. Explain why marginal revenue must be zero when total revenue is maximized.'''
 If the total revenue is maximized you can't make any more revenue.
 '''4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.'''
 An example of a transaction that can either positive or negative externalities is smoking. If a person buys cigarettes and smokes them in a public place a non-smoking person may experience a negative externality in having to breathe the polluted air. On the other hand if a poor person who can't afford cigarettes parks himself next to the smoker, he reaps the benefit of a free smoke.
 '''5. Explain why private firms in the free market are unlikely to try to provide public goods.'''
 Because they are not getting any benefit, since it's a public good. A firm is not going to do something if it can't get any profit.
 '''6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.'''
 A and B are complements because they are positive. C and D are substitutes because they are negative.
 '''7. List the four factors of production and give a very brief explanation of each.'''
 Land, money, workers and entrepreneurship.

@@ Line 3: / Line 3: @@
 '''2. Explain why marginal revenue must be zero when total revenue is maximized.'''
-If the total revinue is maxemized
+If the total revenue is maximized you can't make any more revenue.
 '''4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.'''
+An example of a transaction that can either positive or negative externalities is smoking. If a person buys cigarettes and smokes them in a public place a non-smoking person may experience a negative externality in having to breathe the polluted air. On the other hand if a poor person who can't afford cigarettes parks himself next to the smoker, he reaps the benefit of a free smoke.
 '''5. Explain why private firms in the free market are unlikely to try to provide public goods.'''
+Because they are not getting any benefit, since it's a public good. A firm is not going to do something if it can't get any profit.
 '''6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.'''
+A and B are complements because they are positive. C and D are substitutes because they are negative.
 '''7. List the four factors of production and give a very brief explanation of each.'''

@@ Line 1: / Line 1: @@
 '''1. In your own words, try to give a better definition of "externalities" than provided by this Lecture.'''
-The positve or negitve effect of a transaction on persons
+The positive or negative effect of a transaction on persons other than the buyer and seller.
 '''2. Explain why marginal revenue must be zero when total revenue is maximized.'''
 '''3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?'''
 '''4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.'''
 '''5. Explain why private firms in the free market are unlikely to try to provide public goods.'''
 '''6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.'''
 '''7. List the four factors of production and give a very brief explanation of each.'''

← Older revision		Revision as of 15:01, November 19, 2009
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−	~~Aran M~~	+	'''1. In your own words, try to give a better definition of "externalities" than provided by this Lecture.'''
		+	The positve or negitve effect of a transaction on persons
		+	'''2. Explain why marginal revenue must be zero when total revenue is maximized.'''
		+
		+	'''3. What is your favorite question on the midterm exam that you answered incorrectly, and why is it your favorite?'''
		+
		+	'''4. Give an example of a positive externality, and an example of a negative externality. The example does not have to be limited to a business.'''
		+
		+	'''5. Explain why private firms in the free market are unlikely to try to provide public goods.'''
		+
		+	'''6. Review question: the cross-elasticity of A with respect to B is positive, and C with respect to D is negative. What is the relationship (complement or substitute?) of goods A and B with each other, and C and D with each other? Explain.'''
		+
		+	'''7. List the four factors of production and give a very brief explanation of each.'''

← Older revision		Revision as of 14:54, November 19, 2009
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−	~~--[[User:AnnaM\|AnnaM]] 09:54, 19 November 2009 (EST)~~Aran M	+	Aran M