Y7

Answer the following questions in-line by modifying the document. Feel free to embed spreadsheets and graphs (or photos of graphs) where necessary.

1.Give an example to show that you understand the difference between total and Marginal utility.

2.Do you think that utility analysis is important even though it cannot be measured?

3.What is consumer equilibrium?

4.Economic theory assumes that the objective of the firm is to maximize profits. How are profits calculated (2 ways)? What criticisms have been made about the profit-maximizing assumption?

5.What is the difference between the long run and the short run?

6.What is the difference between fixed and variable factors of production? Provide examples.