com/ECO-561/ECO-561-Chapter-3-Quiz ECO 561 Chapter 3 Quiz CHAPTER 3 QUIZ Question 1 The demand curve facing each wool producer is ________ starting at $3.00 per pound. Question 2 If a firm in a perfectly competitive industry raises price above market price, Question 3 The fast food industry is not considered perfectly competitive because: Question 4 You are certain that a normal rate of profit is 18% for the fast-food industry. What is your estimate of a normal rate of profit in the computer software industry
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compared to a single-pricing strategy. Price discrimination is common type of pricing strategy used by businesses with flexible pricing power. It is price competition between firms attempting to get an advantage in the market or to protect a position they already have in the market. Price discrimination takes place when a firm charges a different price to different groups of consumers for the same good or service. A price discrimination strategy that could be used in the sub shop to increase
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Running Header: Market Equilibration Process Paper Labor Demand and Supply Economics ECO/561 April 21, 2011 Running Header: Market Equilibration Process Paper Introduction The purpose of this paper is to relate the concepts of the market equilibrating process to a prior real-world experience occurring in a free market. The market equilibrating process will be explained and the following components will be considered in the explanation; Law of demand and the determinants of demand, law of
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Microeconomics & Markets Frederieke Dijkhuizen Microeconomics Chapter 1. The fundamentals of managerial economics Manager: a person who directs resources to achieve a stated goal. Economics: the science of making decisions in the presence of scarce resources. Managerial economics: the study of how
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PART I Q. 1. In which type of economy do consumers and producers make their choices based on the market forces of demand and supply? a) Open economy b) Controlled economy c) Command economy d) Market economy. Q. 2 Opportunity costs are a result of a) Scarcity b) Overproduction c) Technology obsolescence d) Abundance of resources Q. 3 Which of the following statements is not true about individual demand? a) The decision to purchase is always influenced by the income constraints. b) Selection of
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cc * Week 2 * Rationally, you should compare marginal benefit with marginal costs Do (all) individuals make rational decisions all of the time? * NO (Economies is a study of how rational individuals make decisions) Examples: * Many restaurants do stay open for lunch, although there are relatively few customers * Number of motor vehicle accidents does go up subsequent to introduction to seatbelt legislation Agenda Key Concept: Comparative Advantage Production Possibilities
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The Basics of Supply and Demand..................................................................................16 Consumer Behavior...........................................................................................................55 Individual and Market Demand...................................................................................125 Uncertainty and Consumer Behavior ...........................................................................179 Production ...........................
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Quiz 1 1. Economics is best defined as the study of how (3) 1) prices and quantities of goods and services are determined in markets. 2) private firms and households respond to taxes and subsidies. 3) people make choices in the presence of scarcity and the results of those choices. 4) interest rates and exchange rates are determined. 2. The scarcity principle implies that (4) 1) people will never be satisfied with what they have. 2) as wealth increases, making choices becomes
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smaller order would take just as much time to do a larger order. 11. How is the transfer price of an intermediate product determined when (a) there is no external market for the intermediate product (b) a perfectly competitive external market for the intermediate product exists, and (c) an imperfectly competitive external market for the intermediate product exists? (A) “When there is no external demand for the intermediate product, the production division can sell the intermediate product only
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Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis. The economist would approach the problem of alcohol abuse as cost, and how they could put it in real numbers. When measuring the cost of alcohol abuse in any city in the U.S. we must understand what make the assumptions of alcohol abuse comprehensible and to focus on the relevant alcohol abuse. We
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