Case A: you live in Haiphong and you have to pay 1 million for rent and living expenses. Which of the following should you probably not include when calculating study costs? For a country that produces two goods, the opportunity cost of one good will be the inverse of the opportunity cost of the other good.
If one producer has an absolute advantage in the production of all goods, then the same producer will also have a comparative advantage in the production of all goods. In an economy consisting of two people producing two goods, it is possible for one person to have absolute advantage and comparative advantage in both goods. Ha has an absolute advantage and a comparative advantage in editing, Nam has an absolute advantage and a comparative advantage in typing.
10. The principle of comparative advantage states that, regardless of the price at which trade takes place, everyone will benefit from trade if they specialize in the production of the good for which they have a comparative advantage. 11. Trade allows a person to obtain goods at prices that are less than that person's opportunity cost because each person specializes in the activity for which he or she has the lowest opportunity cost.
The following table contains some production possibilities for an economy for a given month
If Korea is capable of producing either shoes or soccer balls or some combination of the two, then
If the opportunity cost of one bushel of corn is 3/5 bushel of green beans, then the opportunity cost of 1 bushel of one bushel of corn is 3/5 bushel of green beans, then the opportunity cost of 1 bushel of green beans is. In one month, Mike can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs. Given this, we can make 4 tables or 20 chairs, where Sandy can make 6 tables or 18 chairs.
Absolute advantage is found by comparing different producers’
Jim has an absolute advantage in the production of baseball bats and in the production of hockey sticks. Jim has an absolute advantage in the production of baseball bats and a comparative advantage in the production of hockey sticks. Jim has an absolute advantage in the production of hockey sticks and a comparative advantage in the production of baseball bats.
Jim has a comparative advantage in the production of baseball bats and in the production of hockey sticks. Canada is said to have a comparative advantage in wheat production if a comparative advantage in wheat production if. In which of the following circumstances would neither individual have a comparative advantage in either activity.
Two individuals engage in the same two productive activities. In which of the following circumstances would neither individual have a comparative advantage in either activity?
When each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy
If labor in Mexico is less productive than labor in the United States in all areas of production, a. then neither nation can benefit from trade
By Le Thanh Ha
Discussion questions
Multiple Choice
- The law of demand states that, other things equal,
- The market demand curve
- To obtain the market demand curve for a product, sum the individual demand curves a. vertically
- The demand curve for hot dogs
- Which of the following would not shift the demand curve for mp3 players?
- Which of the following is not a determinant of the demand for a particular good?
- Suppose that a decrease in the price of good X results in fewer units of good Y being sold
- You wear either shorts or sweatpants every day. You notice that sweatpants have gone on sale, so your demand for
- Which of the following might cause the demand curve for an inferior good to shift to the left?
- Price controls are usually enacted
- Price controls
- Policymakers use taxes
- If a price ceiling is not binding, then a. there will be a surplus in the market
- A shortage results when
- If a binding price ceiling is imposed on the computer market, then a. the demand for computers will increase
- If the government removes a binding price ceiling from a market, then the price paid by buyers will
- When a binding price ceiling is imposed on a market to benefit buyers, a. no buyers actually do benefit
You have no plans to buy hot dogs in December, but you will start a new job in January. Suppose a decrease in the price of good X results in fewer units of good Y being sold. You notice that sweatpants were on sale, so your demand for that is also your demand for.
Which of the following can cause the demand curve for an inferior good to shift to the left. If the government removes the binding price ceiling from the market, then the price paid by the buyers will be the buyers.
By Le Thanh Ha
- Let consider an example: two people go to the gas station they say
- A and B have the following demand for a good
Goods with close substitutes tend to have more elastic demands than goods without close substitutes. The demand for gasoline will respond more to a change in price over a five-week period than over a five-year period. If demand is perfectly inelastic, the demand curve is vertical and the price elasticity of demand equals 0.
The elasticity between the price of garlic salt and onion salt is -2, indicating that garlic salt and onion salt are substitutes. For which of the two goods would you expect demand to be more price elastic? When the price of oranges is 16k/kg and the price of tangerines is 14k/kg, the quantity demanded of tangerines is 30 kg.
When the price of oranges decreases to 12k/kg, then the quantity demanded of tangerines is 30 kg. When the price of oranges decreases to 12k/kg, then the quantity demanded of tangerines is 22 kg.
Multiple Choices
By Le Thanh Ha
- Refer to Table 7- If the price of the product is $15, then who would be willing to purchase the product?
- Refer to Table 7- If the market price of an orange is $0.70, the market quantity of oranges demanded per day is
- A drought in California destroys many red grapes. As a result of the drought, the consumer surplus in the market for red grapes
If the price of the product is $15, who would be willing to buy the product. If the price of the product is $22, who would be willing to buy the product. For each of the three potential orange buyers, the table shows the willingness to pay for the first three oranges of the day.
Assume that Alex, Barb, and Carlos are the only three buyers of oranges and that only three oranges can be delivered per day. If the market price of an orange is $1.20, the market quantity of oranges demanded per day per day. If the market price of an orange is $0.70, the market quantity of oranges demanded per day.
As a result of the drought, there is a consumer surplus in the red grape market.
By Le Thanh Ha
True/False question (give a brief explanation)
Multiple Choice Table 5-1 Student service
Refer to Table 5- What is the marginal product of the second worker?
Let L represent the number of workers hired by a firm and let Q represent the quantity of output of that firm. For a large company that manufactures and sells automobiles, which of the following costs would be a variable cost.
For a large firm that produces and sells automobiles, which of the following costs would be a variable cost?
Question Competitive Markets By Dr. Le Thanh Ha
All firms maximize profit by producing the level of output where marginal revenue equals marginal cost; for firms operating in perfectly competitive industries, profit maximization also means producing the level of output where price equals marginal cost. A firm operating in a perfectly competitive industry will shut down in the short run but incur losses if the market price is less than that firm's average variable costs. In the short run, a firm should exit the industry if its marginal cost exceeds its marginal revenue.
A firm's supply curve in a competitive market is the curve of average variable cost above minimum marginal cost. The short-run supply curve in a competitive market should be more elastic than the long-run supply curve. Why would a firm in a perfectly competitive market always choose to set its price equal to the current market price?
What effect would it have on the market if the company set its price below the current market price? Use a graph to show the circumstances that would prevail in a competitive market where firms earn an economic profit. What are the quantity and price where the firm breaks even (zero profit).
Multiple Choice
Why does a firm in a competitive industry charge the market price?
If a firm charges more than the market price, it loses all its customers to other firms. The firm can sell as many units of output as it wants at the market price. A competitive firm will benefit from charging a price below the market price because the firm will achieve it.
A competitive firm would benefit from charging a price below the market price because the firm would achieve
Which of the following statements regarding a competitive market is not correct?
Which of the following statements is correct?
If a firm in a perfectly competitive market triples the number of units of output sold, then total revenue will
Which of the following statements best expresses a firm’s profit-maximizing decision rule?
Question: Monopoly By Le Thanh Ha
- Which of the following would be most likely to have monopoly power?
- Which of the following statements is true of a monopoly firm?
- Which of the following statements is correct for a monopolist?
- Which of the following statements is correct for both a monopolist and a perfectly competitive firm?
- For a monopoly, the level of output at which marginal revenue equals zero is also the level of output at which
- The deadweight loss associated with a monopoly occurs because the monopolist a. maximizes profits
- Economics deals primarily with the concept of a. scarcity
- When each person specializes in producing the good in which he or she has a comparative advantage, total production in the economy
- Trade between countries
- In a competitive market, the quantity of a product produced and the price of the product are determined by
- The law of demand states that, other things equal,
- A price ceiling is
- The opportunity cost of going to college is
- Refer to Table 2. Which of the following price floors would be binding in this market?
- Refer to Figure 2. Area C represents the
- The principle of comparative advantage asserts that
- A tariff is a
- All externalities
- A negative externality arises when a person engages in an activity that has
- If Amanda sells 200 glasses of lemonade at $0.50 each, her total revenuesare
- Profit-maximizing firms in a competitive market produce an output level where a. marginal cost equals marginal revenue
- Which of the following are necessary characteristics of a monopoly?
- A natural monopoly occurs when
- Which of these situations produces the largest profits for oligopolists?
- A distinguishing feature of an oligopolistic industry is the tension between a. profit maximization and cost minimization
- An oligopoly is a market in which
Like competitive firms, monopolies choose to produce a quantity at which marginal revenue equals marginal cost. Explain how a profit-maximizing monopolist chooses the level of output and the price of its goods. The intersection of the marginal revenue and marginal cost curves occurs when output is 100 units and marginal revenue is $5. The socially efficient level of production is 110 units.
The demand curve is linear and downward sloping, and the marginal cost curve is constant. The firm maximizes profit by equating marginal revenue with marginal cost. ii) The firm maximizes profits by setting price equal to marginal cost. iii) Demand equals marginal revenue. iv) Average revenue equals price. The firm maximizes profit by equating marginal revenue with marginal cost. ii) The firm maximizes profits by setting price equal to marginal cost. iii) Demand equals marginal revenue. iv) Average revenue equals price.
For a monopoly, the level of output at which marginal revenue equals zero is also the level of output at which output In a competitive market, the quantity of a product produced and the price of the product are determined by. -maximizing firms in a competitive market produce a level of output whereas. marginal cost equals marginal revenue. marginal cost equals marginal revenue. marginal cost equals average total cost. price is less than marginal revenue.
40. Economists normally assume that a firm's goal is to (i) sell as much of their output as possible. ii) sets the price of the product as high as possible.
CALCULATING EXERCISE (20 marks)
