Problem Set 3 - Assignment Essays

question

name of the elasticity measure indicating the responsiveness of demand for a product to its own price changes

answer

price of elasticity of demand

question

name of the elasticity measure indicating the responsiveness of demand to another good's price change

answer

cross price elasticity of demand

question

name of the elasticity measure indicating the responsiveness of demand to a change in household income

answer

income elasticity of demand

question

term used to describe the type of good that has a negative cross price elasticity of demand with another good, like water

answer

complement

question

term used to describe the type of good that has a negative income elasticity of demand with another good, like water

answer

inferior

question

the percentage change in demand for Gatorade if the price elasticity demand is .5 and price of gatorade falls by 10%

answer

+5%

question

of positive, negative, or zero, the value of the marginal revenue when demand is elastic

answer

positive

question

of increase, decrease, or stay the same, the effect of an increase in price on total revenue in an industry if the price elasticity of demand is 1.5

answer

decrease

question

of elastic or inelastic this describes demand at the profit maximizing monopoly price

answer

elastic

question

term used to describe the additional output caused by an increase in labor input

answer

marginal product (of labor)

question

term used to describe the feature in production wherein the additional output caused by an increase in labor input decreases as the labor input grows

answer

diminishing marginal product

question

term used to describe the total fixed cost divided by the total output of a firm

answer

average fixed cost

question

term used to describe the total cost divided by the total output of a firm

answer

average total cost

question

term used to describe the change in revenue for an additional unit of sales

answer

marginal revenue

question

term used to describe the change in total cost for an additional unit of output

answer

marginal cost

question

this cost curve crosses the average total cost curve at its minimum value

answer

marginal cost

question

this cost curve crosses the average variable cost curve at its minimum value

answer

marginal cost

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is rising at the current level of output

answer

diseconomies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is falling at the current level of output

answer

economies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails when productivity improves with a greater division of labor

answer

economies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is less than its marginal cost at the current level of output

answer

diseconomies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is greater than its marginal cost at the current level of output

answer

economies of scale

question

name given to the business practice of charging different prices to different customers for economy seats on an airplane

answer

price discrimination

question

this type of firm has the power to determine both the quantity it produces and the price it charges

answer

monopoly

question

an equation describing how a monopoly firm will choose output so as to maximize profit

answer

set MR=MC

question

term used to describe a monopoly that arises because one firm can produce a product for the whole market at a lower cost than several firms can supply part of the market

answer

natural monopoly

question

term used to describe the rights protected by governments on products such as pharmaceuticals, book, films, and music CDs

answer

intellectual property

question

same given to a game in which the profit-seeking players choose an outcome that is inferior to another possible outcome

answer

prisoner's dilemma

question

of increase, decrease, or stay the same, this is the effect on the profit of a once-monopoly firm when another firm enters and competes in a market

answer

decrease

question

of increase, decrease, or stay the same, this is the effect on total consumer surplus when a second firm enters and competed in a market

answer

increase

question

of increase, decrease, or stay the same, this is the effect on total market welfare when a second firm enters and competes in a market

answer

increase

1 of 31

question

name of the elasticity measure indicating the responsiveness of demand for a product to its own price changes

answer

price of elasticity of demand

question

name of the elasticity measure indicating the responsiveness of demand to another good's price change

answer

cross price elasticity of demand

question

name of the elasticity measure indicating the responsiveness of demand to a change in household income

answer

income elasticity of demand

question

term used to describe the type of good that has a negative cross price elasticity of demand with another good, like water

answer

complement

question

term used to describe the type of good that has a negative income elasticity of demand with another good, like water

answer

inferior

question

the percentage change in demand for Gatorade if the price elasticity demand is .5 and price of gatorade falls by 10%

answer

+5%

question

of positive, negative, or zero, the value of the marginal revenue when demand is elastic

answer

positive

question

of increase, decrease, or stay the same, the effect of an increase in price on total revenue in an industry if the price elasticity of demand is 1.5

answer

decrease

question

of elastic or inelastic this describes demand at the profit maximizing monopoly price

answer

elastic

question

term used to describe the additional output caused by an increase in labor input

answer

marginal product (of labor)

question

term used to describe the feature in production wherein the additional output caused by an increase in labor input decreases as the labor input grows

answer

diminishing marginal product

question

term used to describe the total fixed cost divided by the total output of a firm

answer

average fixed cost

question

term used to describe the total cost divided by the total output of a firm

answer

average total cost

question

term used to describe the change in revenue for an additional unit of sales

answer

marginal revenue

question

term used to describe the change in total cost for an additional unit of output

answer

marginal cost

question

this cost curve crosses the average total cost curve at its minimum value

answer

marginal cost

question

this cost curve crosses the average variable cost curve at its minimum value

answer

marginal cost

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is rising at the current level of output

answer

diseconomies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is falling at the current level of output

answer

economies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails when productivity improves with a greater division of labor

answer

economies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is less than its marginal cost at the current level of output

answer

diseconomies of scale

question

of economies of scale, diseconomies of scale, or constant return scale, this prevails for a firm whose average total cost is greater than its marginal cost at the current level of output

answer

economies of scale

question

name given to the business practice of charging different prices to different customers for economy seats on an airplane

answer

price discrimination

question

this type of firm has the power to determine both the quantity it produces and the price it charges

answer

monopoly

question

an equation describing how a monopoly firm will choose output so as to maximize profit

answer

set MR=MC

question

term used to describe a monopoly that arises because one firm can produce a product for the whole market at a lower cost than several firms can supply part of the market

answer

natural monopoly

question

term used to describe the rights protected by governments on products such as pharmaceuticals, book, films, and music CDs

answer

intellectual property

question

same given to a game in which the profit-seeking players choose an outcome that is inferior to another possible outcome

answer

prisoner's dilemma

question

of increase, decrease, or stay the same, this is the effect on the profit of a once-monopoly firm when another firm enters and competes in a market

answer

decrease

question

of increase, decrease, or stay the same, this is the effect on total consumer surplus when a second firm enters and competed in a market

answer

increase

question

of increase, decrease, or stay the same, this is the effect on total market welfare when a second firm enters and competes in a market

answer

increase

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