Page 1 of 7 Massachusetts Institute of Technology Department of Economics 14.01 Principles of Microeconomics Final Exam Wednesday, December 19th, 2007 Last Name (Please print): ______________ First Name: __________________ MIT ID Number: __________________ Instructions. Please read carefully. The exam has a total of 100 points. Answers should be as concise as possible. This is a closed book exam. You are not allowed to use notes, equation sheets, books or any other aids
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showing the difference between monopoly pricing and competitive pricing. The government can give a pharmaceutical company the exclusive right to produce a good by granting patents on drugs. Patents refer to the exclusive monopoly right over a particular drug that extends for a period of 20 years, creating barriers to entry where other firms cannot enter the market. The existence of high barriers to entry prevents firms from entering the market even in the long-run. Therefore, it is possible for
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Explain the concept of Price Elasticity of Demand and discuss its relevance for Business and Government Price elasticity of demand According to the law of demand: the lower the price the more product is bought. But consumer response to changes in price can vary significantly from product to product. Economists measure the response (sensitivity) of consumers to changes in product prices, using the concept of price elasticity.The gist of the concept of price elasticity is:• if small changes in
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are the keys to getting people moving in a corporation. C. business success is possible in a regulatory environment. D. organizational structure is extremely important in business success. 12. Many economics texts discuss the question "Which markets should a firm enter?" This text focuses on the following question: A. How should the firm price its products? B. Who are the firm's competitors? C. How should the firm be internally structured? D. What mix of inputs – labor and capital – is most
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units. In the first one, Profit Maximization and Competitive Supply, we present a short but very useful introduction to mathematical concepts, namely the derivative technique, used in the economic field. Many examples will be given to clarify the concepts studied. Then, we will use this technique to calculate marginal cost, marginal revenue, and optimal output that will be produced by a competitive firm. . In Unit 2, The Analysis of Competitive Markets, we will study the welfare effects of a government
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in long-run completive equilibrium. Firms were earning a normal rate of return and were competing in a monopolistically competitive market structure. In 2008, a couple of lawyers quietly purchased all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonk’s hired a management consulting firm, which estimated a different long run competitive equilibrium. The new company is now run as a monopoly, and this paper shall explain how this benefit’s the stakeholders
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Preface: Enthused with the overwhelming performance of Dairy Milk in such a competitive market, this project is specifically made to have a deep and thorough understanding of various aspects of Microeconomics such as demand and supple analysis of my domain product Cadbury Dairy Milk. Since last 50 yrs Dairy Milk is in the maturity level of it life cycle. And here are some of the facts that display the market condition and working of Dairy Milk. The various graphs and data used are partly
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SECTION B Answer ALL Questions in this sections in the spaces provided. Be brief and precise. Question 1: Refer to Figure 6 below Figure 6 [pic] a. Equilibrium price and quantity before trade would be ▪ Price = $14; ▪ Quantity = 600 b. The price and domestic quantity demanded after trade would be ▪ Price = $ 18; ▪ Domestic quantity demanded = 400 c. After trade domestic production would be ▪ Domestic production = 800
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Final Project Part I Milestone One: Supply, Demand, and Market Equilibrium Click Link Below To Buy: http://hwaid.com/shop/final-project-part-i-milestone-one-supply-demand-and-market-equilibrium/ Apple is the Company and the product is IPhone 6 3-2 Final Project Part I Milestone One: Supply, Demand, and Market Equilibrium This milestone, which covers Section II of Final Project Part I, should be a paper structured as follows: 1. Describe the price elasticity of supply or demand for
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Diff: 1 Page Ref: 169/169 Topic: Elastic and Inelastic Demand Objective: LO1: Define price elasticity of demand and understand how to measure it. AACSB: Reflective Thinking Special Feature: None 4) If demand is perfectly inelastic, the absolute value of the price elasticity of demand is A) zero. B) less than one. C) more
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