New Semester
Started
Get
50% OFF
Study Help!
--h --m --s
Claim Now
Question Answers
Textbooks
Find textbooks, questions and answers
Oops, something went wrong!
Change your search query and then try again
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
project management processes methodologies and economics
Economics For Today 5th Edition Irvin B. Tucker - Solutions
Which of the following is the correct formula for determining the civilian unemployment rate?a. [(the number of unemployed, working-age civilians seeking work)/(the number of civilians in the labor force)]100b. C I G (XM)c. The total number of unemployed, working-age civilians seeking workd.
The ________________ unemployment rate is unemployment resulting from insufficient aggregate demand.
The equation for determining real GDP for year X is a. nominal GDP for year X average family income b. nominal GDP for year X GDP for year X c. nominal GDP for year X. average nominal GDP d. none of the above. x 100. 100.
Recently, the city of New Orleans discovered chemical compounds in its drinking water that may cause cancer. Since New Orleans’s drinking water comes from the Mississippi River, the source of these chemicals is the waste discharges of industrial plants upstream from New Orleans. This is an
T F The Coase Theorem states that the public sector can achieve environmental efficiency, as long as property rights are clearly assigned.
Which of the following statements is true?a. Competitive markets result in the socially efficient price and quantity when externalities exist.b. Command-and-control regulations set an environmental goal and dictate how the goal will be achieved.c. Economists prefer command-and-control regulations
Which of the following offers the best economic justification for subsidizing vaccinations for infectious disease on the basis of efficiency?a. Vaccinations create a positive externality for society because they reduce the chances and the scope of epidemics.b. Vaccinations are a type of pollution
Compared to incentive-based regulation, commandand-control legislationa. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run.b. encourages the use of comparative advantage in the short run, but discourages the development
________________ is the proposition that private market negotiations will achieve social efficiency, regardless of the initial definition of property rights.
In a study of ranching laws in the 1800s, an economic researcher found that as these laws restricted the ability of cattle to roam freely, agricultural output increased. Do this researcher’s results support the Coase Theorem? Explain.
Explain why consumers would not be willing to pay the full costs of a less-polluting car in the absence of government regulations.
California once proposed legislation that would have required 10 percent of its car fleet to be nearly emissions free by the year 2005. This mandate spurred electric vehicle research. Such vehicles could be powered by photovoltaic cells or by batteries that are recharged using an electrical outlet.
Draw a graph to demonstrate your answer to question 6.
Environmentalists in Tennessee brought suit against the Champion Paper Company of North Carolina for polluting the Pigeon River, which flows from North Carolina into eastern Tennessee. Tennessee claimed that the coffee-colored water smelled bad and would not support fishing or swimming.
Suppose your instructor gives eight homework assignments during the semester. She indicates that anyone who does not turn in all eight assignments will automatically fail the course. Is this an example of a command-and-control or an incentive-based regulation? Explain any inefficiencies of your
Restaurants have observed that large parties (eight or more) leave a lower average tip than smaller parties.Identify the effect, which also makes it more difficult to reach global environmental agreements, responsible for this phenomenon.
You are considering whether to buy one house for$100,000 or another, identical house located near high-voltage electric power lines for $90,000.Assume that it has been established that living near high-voltage lines increases the risk of cancer due to electromagnetic fields (EMFs). If you choose
Suppose a car sells for $20,000 in a market with no pollution restrictions. Will the car sell for more than$20,000, less than $20,000, or $20,000 when there are pollution restrictions? Explain.
Compare price and quantity in a competitive industry to those of a “green” industry for a product that generates pollution.
Can government intervention actually reduce environmental quality?
How can government legislation, taxes, and permits help society achieve its environmental goals?
Why do competitive markets produce too many hogs and charge too low a price for those hogs?
T F The Robinson-Patman Act strengthened the merger provisions of the Clayton Act.
Which of the following statements is true?a. A vertical merger is a merger of firms that compete in the same market.b. The rule of reason doctrine declares that the existence of monopoly alone is illegal.c. Government regulation of a natural monopoly is economically justifiable.d. Deficient
Which antitrust act prohibits price fixing and other conspiracies and combinations that restrain trade and attempts to monopolize?a. Sherman Act of 1890b. Clayton Act of 1914c. Federal Trade Commission Act of 1914d. Robinson-Patman Act of 1936e. Celler-Kefauver Act of 1950
Suppose a firm offers quantity discounts or special promotional allowances only to favored distributors and the effect is to substantially lessen competition.This firm would be in violation of thea. Celler-Kefauver Act.b. Sherman Antitrust Act.c. Federal Trade Commission Act.d. Clayton Act.e.
The antitrust doctrine that the existence of monopoly alone is not illegal unless the monopoly engages in illegal business practices is called the ___________.
Based on the antitrust laws, how would you expect the federal government to react to the following situations?a. A college bookstore deliberately reduces prices until its only rival is driven out of business. The bookstore then raises its prices.b. Real estate firms meet in an open meeting and
Why is market failure an economic rationale for regulation?
Why doesn’t the water company or electric company compete?
Can universities and colleges improve education by engaging in price-fixing?
Which of the following might decrease the supply curve of labor?a. Discrimination against blacksb. Discrimination against womenc. Difficult licensing requirementsd. All of the above
T F When determining whether a family’s income is below the official poverty line, noncash benefits from the government, such as food, housing, and medical benefits, are not included.
Which of the following statements is true?a. Discrimination against women and blacks reduces the demand for these workers, resulting in lower wages paid these workers.b. Discrimination is no longer a problem in the United States.c. A negative income tax system is a plan in which everyone pays the
Which of the following statements is true?a. All people in poverty are on welfare.b. Unemployment compensation is an in-kind transfer.c. Temporary Assistance to Needy Families (TANF)is an example of a cash payment made by government to the impoverished.d. After cash assistance and in-kind transfers
Which of the following statements is true?a. Income distribution in the United States has gotten progressively more unequal since 1929.b. The Lorenz curve indicates the degree of discrimination in an economy.c. The Lorenz curve indicates the degree of income inequality in an economy.d. The richest
Government payments in the form of goods and services, rather than cash, including such government programs as food stamps, Medicaid, and housing are called ______________________ .
What are three major criticisms of welfare?
What percentage of families in the United States was classified as poor in the 1990s? Which demographic groups have higher poverty rates?
What is the effect on labor markets of laws that protect women from jobs deemed too strenuous or too dangerous?
How can a negative income tax solve the welfare controversy?
Could the rich become richer and other income groups also become better off?
T F In a competitive labor market, marginal revenue product equals marginal product times the product price.
A firm’s demand for labor depends, in part, on the demand for the firm’s product. To summarize this idea, economists say that the demand for labor isa. derived demand.b. marginal demand.c. secondary demand.d. monopsonistic demand.
Assume Ajax Company employs 100 workers and total revenue is $400,000. When Ajax Company employs 101 workers, total revenue is $405,000.The marginal revenue product of the 101st workers isa. $40,000.b. $5,000.c. $405,000.d. none of the above.
The ________ is the curve showing the different quantities of labor a firm is willing to hire at different prices of labor.
Some economists argue that the American Medical Association and the American Bar Association create an effect on labor markets similar to that of a labor union. Do you agree?
Use the data in question 2, and assume the equilibrium wage rate is $90 per day, determined in a perfectly competitive labor market. Now explain the impact of a union-negotiated collective bargaining agreement that changes the wage rate to $100 per day.
Assume the Grand Slam Baseball Store sells $100 worth of baseball cards each day, with 1 employee operating the store. The owner decides to hire a second worker, and the 2 workers together sell $150 worth of baseball cards. What is the second worker’s marginal revenue product (MRP)? If the price
The Zippy Paper Company has no control over either the price of paper or the wage it pays its workers. The following table shows the relationship between the number of workers Zippy hires and total output:If the selling price is $10 per box, answer the following questions:a. What is the marginal
Does the NCAA exploit college athletes?
How do labor unions influence wages and employment?
What determines the wage rate an employer pays?
T F In the long run, marginal cost must equal marginal revenue for a monopolistic competitive firm, but not at the minimum point of the long-run average cost curve.
A game theory strategy for oligopolists to avoid a low-price outcome is ___________.a. tit for tatb. price leadershipc. second bestd. win-win
Which of the following is true about an oligopoly equilibrium in comparison with equilibrium under similar circumstances but with perfect competition?a. Output is larger and price is lower than under perfect competition.b. Output is larger but price is higher than under perfect competition.c.
__________ means an action by one firm may cause a reaction on the part of other firms.
What might be a general distinction between oligopolists that advertise and those that do not?
List four goods or services that you have purchased that were produced by an oligopolist. Why are these industries oligopolistic, rather than monopolistically competitive?
Exhibit 9 represents a monopolistically competitive firm in long-run equilibrium.EXHIBIT 9a. Which price represents the long-run equilibrium price?b. Which quantity represents the long-run equilibrium output?c. At which quantity is the LRAC curve at its minimum?d. Is the long-run equilibrium price
Why didn’t national companies adjust their prices in the face of increased Final Four demand?
The author says that the Coke-Pepsi competition was an example of “differentiated oligopoly.”What does he mean? In what ways were the soda giants differentiating their products?
How does the NCAA Final Four basketball tournament involve imperfect competition?
Are Cheerios, Rice Krispies, and other brands sold by firms in the breakfast cereal industry produced under monopolistic competition or oligopoly?
Why do OPEC and other cartels tend to break down?
Why will Ivan’s Oyster Bar make zero economic profit in the long run?
A monopolist always faces a demand curve that isa. perfectly inelastic.b. perfectly elastic.c. unitary elastic.d. the same as the market demand curve.
T F Regardless of the demand for its product, a monopolist will be able to earn positive economic profits.
A price-discriminating monopoly charges the lowest price to the group thata. has the most elastic demand.b. purchases the largest quantity.c. engages in the most arbitrage.d. is least responsive to price changes.
A monopoly will price its producta. where total revenue is maximized.b. where total costs are minimized.c. at that point on the market demand curve corresponding to an output level in which marginal revenue equals marginal cost.d. at that point on the market demand curve which intersects the
Which of the following statements best describes the price, output, and profit conditions of monopoly?a. Price will equal marginal cost at the profitmaximizing level of output, and profits will be positive in the long run.b. Price will always equal average variable cost in the short run, and either
A (an) ________ arises because of the existence of economies of scale in which the LRAC falls as production increases. As a result, smaller firms leave the industry, new firms fear competing with the monopolist, and the result is that a monopoly emerges naturally.
Suppose the candy bar industry approximates a perfectly competitive industry. Suppose also that a single firm buys all the assets of the candy bar firms and establishes a monopoly. Contrast these two market structures with respect to price, output, and allocation of resources. Draw a graph of the
Which of the following constitute price discrimination?a. A department store has a 25 percent-off sale.b. A publisher sells economics textbooks at a lower price in North Carolina than in New York.c. The Japanese sell cars at higher prices in the United States than in Japan.d. The phone company
Suppose the demand and cost curves for a monopolist are as shown in Exhibit 10 below. Explain what price the monopolist should charge and how much output it should produce. Price, costs, and revenue (dollars) 0 MC MR Quantity of output ATC AVC
In each of the following cases, state whether the monopolist would increase or decrease output:a. Marginal revenue exceeds marginal cost at the output produced.b. Marginal cost exceeds marginal revenue at the output produced.
Given the data from the above demand schedule, what price will the monopolist charge, and how much output should the firm produce? How much profit will the firm earn? When marginal cost is above zero, what will be the effect on the price and output of the monopolist?
Make the unrealistic assumption that production is costless for the monopolist in question
Use the following demand schedule for a monopolist to calculate total revenue and marginal revenue. For each price, indicate whether demand is elastic, unitary elastic, or inelastic. Using the data from the demand schedule, graph the demand curve, the marginal revenue curve, and the total revenue
Suppose the average cost of producing a kilowatthour of electricity is lower for one firm than for another firm serving the same market. Without the government granting a franchise to one of these competing power companies, explain why a single seller is likely to emerge in the long run.
Are medallion cabs in New York City monopolists?
How can price discrimination be fair?
Why doesn’t the monopolist gouge consumers by charging the highest possible price?
T F In long-run equilibrium, a perfectly competitive firm’s short-run marginal cost curve crosses the longrun average cost curve at the lowest point on the long-run average cost curve.
In long-run equilibrium, the typical perfectly competitive firm will:a. earn zero economic profit.b. change plant size in the long run.c. change output in the short run.d. do any of the above.
In the short run, a perfectly competitive firm’s most profitable level of output is wherea. marginal cost exceeds marginal revenue.b. total revenue is at a maximum.c. marginal cost equals marginal revenue.d. all of the above.
The __________ for a perfectly competitive firm is a curve showing the relationship between the price of a product and the quantity supplied in the short run.The individual firm always produces along its marginal cost curve above its intersection with the average variable cost curve.
Suppose a perfectly competitive firm’s demand curve is below its average total cost curve. Explain the conditions under which a firm continues to produce in the short run.
Consider this statement: “The perfectly competitive firm will sell all the quantity of output consumers will buy at the prevailing market price.” Do you agree or disagree? Explain your answer.
Consider Exhibit 14, which shows the graph of a perfectly competitive firm in the short run.a. If the firm’s demand curve is MR3, does the firm earn an economic profit or incur a loss?b. Which demand curve(s) indicates the firm incurs a loss?c. Which demand curve(s) indicates the firm would shut
Consider the following cost data for a perfectly competitive firm in the short run:If the market price is $150, how many units of output will the firm produce in order to maximize profit in the short run? Specify the amount of economic profit or loss. At what level of output does the firm break
In the long run, can alligator farms earn an economic profit?
Why would a firm stay in business while losing money?
Why is the demand curve horizontal for a firm in a perfectly competitive market?
T F If the total variable cost of producing 5 units of output is $10 and the total variable cost of producing 6 units is $15, the marginal cost of producing a sixth unit is $5.
A farm is able to produce 5,000 bushels of peaches per season on 100 acres. Assume it adds one more acre and is able to produce 6,000 bushels per season.The marginal product of the additional acre of land for this farm isa. 6,000 bushels per acre per year.b. 5,000 bushels per acre per year.c. 1,000
After some level of output in the short run, each unit of the variable input yields smaller and smaller marginal product. This principle is called the _________.
a. Construct the cost schedule using the data given below for a firm operating in the short run.b. Graph the average variable cost, average total cost, and marginal cost curves.
What effect might a decrease in the demand for videotape recorders have on the short-run average total cost curve for this product?
a. Construct the marginal product schedule for the production function data shown in the next column.b. Graph the total output and marginal product curves, and identify increasing and diminishing marginal returns.
Showing 1500 - 1600
of 5106
First
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Last
Step by Step Answers
Get 50% OFF
Claim Now
