Questions and Answers of Introduction To Chemical Principles

You’re thinking about buying a Google Home smart speaker, and have determined that you would pay a price of $100 but no more. Use the terms you learned in the chapter to discuss your reasoning for
Most stores offer rotating promotions that provide discounts on various products. However, at many of them you must become a rewards member to take advantage of the deals. The price of the membership
Think about a situation you’ve experienced lately where you’ve made a decision based both on your best interest and on the decisions of others. Use the interdependence principle to explain how
HBO and Showtime are both considering producing a new television show. They could produce either a romantic comedy or a historical drama. The profits are illustrated in the following payoff
For each of the following scenarios, identify whether or not it involves strategic interactions. a. It is dinner time and you are sitting at the dinner table with your five-year-old daughter. She is
In 2018 the United States and China engaged in a trade war where each country was imposing trade tariffs on goods imported from the other country. The Trump administration announced in June of that
Founded in 1960, the Organization of Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 14 nations that meets periodically in order to establish oil production quotas for
Your instructor challenges you to solve this classic economics thought experiment called the stag hunt: Suppose you and a hunting partner are hunting for food to feed your families in a
The Walt Disney Company and Universal Studios are both considering building a new theme park in Texas. They each have two viable options for the new location: Dallas or San Antonio. The expected
The Old Familiar and The Beehive are the only two bistros in town. Each one is trying to decide whether or not it should advertise in the local newspaper. The following payoff matrix gives their
In 2014, the Bridgestone tire corporation admitted guilt in a justice department pricefixing case that involved 26 suppliers of auto parts including Toyo Tires. Bridgestone, Toyo Tires, and other
Pfizer is one of the largest pharmaceutical companies in the world and has a patent on a drug that treats heartburn. If the patent is about to expire, then Pfizer has two options: It can continue to
The U.S. government has decided to build a new off-ramp for Interstate 5 in California. Exxon and Shell are both interested in building a gas station near the new off-ramp. They can build the gas
Consider a market dominated by just two airlines, American and United. Each can choose to restrict capacity and charge a high price or expand capacity and charge a low price. If one of the two
You have developed a new computer operating system and are considering whether you should enter the market and compete with Microsoft. Microsoft has the option of offering their operating system for
You’ve been browsing some new styles on Old Navy’s website, where you often shop, and have filled your virtual cart with a few nice items. But you leave the site without completing your purchase.
Michelle owns an independent bookstore and has observed that college graduates read more than people without degrees. She is considering offering a 10% discount on book purchases to customers who
In cities with booming tourism industries, businesses often offer discounts for locals. For example, residents of Las Vegas, Nevada may receive discounts to various shows and amusement park rides. If
In 2018, Spotify was available in many countries around the world. The same year, Spotify offered an attractive deal available only to students: Spotify Premium, Hulu Limited, and Showtime, all for
Currently, perfect price discrimination—in which each person is charged a price a smidge below their reservation price, which is also their marginal benefit—is mostly a hypothetical scenario.
Your local movie theater uses the same group-pricing strategy described in the chapter— charge different prices for adults, children, seniors, and students. However, the theater uses one additional
Duolingo is a widely used foreign language app, with 300 million users in 2018. While there is a free version of the app, a premium Duolingo subscription eliminates advertisements during language
Disney World charges two different prices for adult and child daily general admission to the park. The price of an adult ticket is $122. The price of a child ticket (ages 3–9) is $117. Since the
You’re shopping to replace your two front tires, and you’ve discovered a pattern: Most tire shops offer promotions that apply to buying four tires. For example, one place you visited offered free
In 2018, Apple released three updated versions of the iPhone X: the XS, (priced at $999), the similarly equipped but larger XS Max ($1,099), and the more affordable XR ($749). The premium-priced XS
Suppose that last week you visited Dunkin, Donuts for a large coffee on your way to campus. The cashier explained that if you go to the link printed on your receipt and answer the survey, you can
On average, college graduates earn more than high school graduates. Briefly describe the two economic explanations for this difference that were discussed in this chapter and how each explains why a
Discussions of inequality often focus on income inequality. What are two other measures of inequality—and why is it important to consider more than one measure?
In the United States, the richest quintile of the population receives 13 times as much income as the poorest quintile. However, the richest quintile only spends four times as much as the poorest
Given your experience and what you’ve learned from the chapter, what factors lead to a high income? Which are under your control and which are not?
Explain whether the U.S. poverty line is an absolute or relative measure.
When the original poverty line was created, not everyone who was in poverty had access to a phone or running water in their homes. What are some things you think are necessary to enjoy a reasonable
Two of your friends are in a heated debate. Elena says that the rich pay higher taxes, and Warren argues the rich pay lower taxes by cheating the system. Which of them is correct? Are there ways in
Several studies suggest that the availability of free or low-cost child care increases labor force participation, particularly for mothers. In other words, redistributing to low-income mothers by
Imagine that you are preparing your will and are trying to decide how to divide your assets between your two grown children. Your daughter Tonya is a chemical engineer who earns a high income. Your
What is meant by “market power”? What does market power depend on? Briefly explain why a business in a perfectly competitive market does not have market power.
For each of the following explain the degree of market power the seller has, and whether the market power is due to limited competitors, product differentiation, or both. a. The Toyota Corolla, the
Provide an example of each of the following market structures in which you have participated as a buyer or maybe even a seller. a. Perfect competition b. Monopolistic competition c. Oligopoly d.
For each of the following state whether the market is most accurately described as perfectly competitive, monopoly, oligopoly, or monopolistic competition, and briefly explain your answer. a.
The figure illustrates the market shares of the main video-streaming services.Based on this information, answer the following questions:a. The on-demand video industry is most accurately described as
Why is the marginal revenue curve for a business with market power below the firm’s demand curve at any given level of output (beyond the first unit). Is this also true for a firm in a perfectly
You have just been hired as the assistant manager at the local Dick’s Sporting Goods store. Your first assignment is to determine the demand curve and the marginal revenue curve for the new Schwinn
A patent effectively allows a firm to operate as a monopoly for several years. Some people argue that the market power created by patents is harmful to consumers and shouldn’t be granted. Others
Richela is a successful artist whose works have the following demand curve. Complete the table and use the information provided to find Richela’s profit-maximizing price and level of output. Price
When the Federal Trade Commission allowed the two largest oil companies, Exxon and Mobil, to merge, it created the world’s largest company. In order to complete the merger, Exxon and Mobil agreed
In October of 2004, British regulators were forced to suspend the license of a flu vaccine plant in Liverpool operated by the Chiron Corporation due to concerns over bacterial contamination. As a
Lynn owns a tutoring center that supplies SAT and ACT test preparation service for high school students on an hourly basis. Consider the demand, marginal revenue, and marginal cost she faces, shown
Describe a situation in which a monopoly might be more efficient than a perfectly competitive market populated by many sellers.
Which of the following types of activities between businesses would be considered illegal in the United States? Select all that apply. a. Delta, United, Southwest, and American airlines agree to
Suppose that Comcast is the only provider of cable service in the city of Baytown, Texas. The following graph shows the monthly demand for cable services in Baytown and Comcast’s marginal revenue
What does the decision to start a business have in common with the decision to attend college? Beyond the explicit financial costs, what are the implicit opportunity costs that you need to account
Joshua owns a small tech start-up that does data analysis for school districts around the country. Which of the following would be included in calculating of his business’s accounting profit? a.
Lukia is thinking of quitting her job as TV news editor to start her own business as a freelancer, editing video for media organizations from her home studio. Describe how her accounting profit would
You are considering opening a small flower store. You anticipate that you will earn $100,000 each year in revenue. It will cost you $30,000 each year to rent the space necessary to run your business.
Petra’s private equity firm is considering investing in a highly profitable local CrossFit gym. However, after researching the local gym market, she expects rival gyms to easily enter and exit the
A year ago, Shani graduated from college and decided to open her own software company. Over the past year, her start-up has generated $500,000 worth of revenue. She hired two software engineers and
Half a century ago, foreign banks were prohibited from operating in Britain unless they had an office that was within walking distance of the Bank of England, which served as the industry’s
Lakisha is a professor of economics. She is currently earning $100,000 a year as a professor. She decides to quit her job as a professor and opens a consulting business. In order to do this, she
For each of the following, briefly explain how it can create a cost advantage for a business. a. Learning by doing. b. Mass production. c. Research and development.
Determine if each of the following costs would be included when calculating accounting profit, economic profit, or both. a. Anna, the owner of a local bike repair shop, uses her time to operate her
Lindsay owns PupUp, a small shop that sells gourmet dog treats from kiosks located in Cleveland-area shopping centers. She is considering expanding her business into Akron and Toledo. The graph below
The market for lattes in your town is shown below.a. If a coffeehouse charges $4 for a latte, what is its per-unit profit margin on each latte sold? Calculate the profit margin and label it on the
You run a small but profitable accounting business with many local clients. When you opened your business, there were very few competitors in your area, but you’ve recently learned that several new
As an investor, you’ll want to invest only in businesses that are likely to be profitable in the long run. Assess the barriers to entry in each of these markets, with an eye to forecasting whether
For each of following scenarios, identify whether it is an example of a demand-side, supply-side, regulatory, or deterrence strategy to limit competition in the market. a. Delta Airlines provides
For each of the following strategies used by Microsoft to limit competition, identify whether it is a demand-side strategy, a supply-side strategy, or a deterrence strategy. a. In 2018, more than
Think about a small business you could start that serves a specific community—for example, your campus, your neighborhood, or even your Instagram followers. Use each of the five forces to conduct a
Trefis, a financial forecasting company, performed a five forces analysis on Under Armour, an American active apparel company, and identified each of the following as a threat to Under Armour’s
Sears was the largest retailer (measured by revenue) in the United States until the 1990s. In 2018, Sears filed for bankruptcy. Using each of the five forces, analyze the competitive pressures facing
In the late 1990s, economists at Microsoft estimated that given that the company held a near-monopoly with its Windows operating system—and a computer can’t work without an operating system—it
Describe three examples of advertising you’ve seen in the last couple of days from any source (apps, online streaming, TV, billboards, etc.). Were the ads examples of informative advertising or
Cecil wants to open a coffee shop. After doing some market research he concludes that people value one of two things when deciding which coffee shop to go to: (1) convenient with lots of coffee-based
Nordstrom has implemented many strategies to compete with other retailers. For each of the following strategies, identify whether the department store is competing on price, customer service,
Describe a scenario you have experienced that can be classified as a hold-up problem. Did you hold someone up or were you held up? Was the problem solved? If so, how?
Apple’s supply chain—the chain of companies from which Apple purchases parts and manufacturing labor—includes over 200 different companies, including some of their own competitors, such as LG
A Delta Airlines advertisement shows a picture of a couple relaxing in an exotic location. The accompanying text states: “Who says a dollar doesn’t go as far as it used to? Up to 75,000 miles per
Which of the following companies are likely to benefit from advertising their own products? How would their demand curves change if their advertising was successful? a. Gillette, makers of the
In Apple’s iconic “Get a Mac” advertising campaign, a middle-aged actor in an ill-fitting suit portrayed a Windows PC, and a younger actor, dressed in fashionable yet casual clothes, portrayed
Josephine, the CEO of a microchip manufacturer, is weighing an offer from Huawei, one of the largest smartphone manufacturers in the world. The Huawei purchasing manager says that if Josephine’s
Sarah has been a shift manager at Arby’s for several years. Over her time there, the owner has put her in charge of payroll and scheduling for all shifts, not just her own. Sarah feels like she
The accompanying table contains data on the income distribution of five states. Pick one and sketch out its income distribution similar to Figure 1. What percentage of all income does the
You have been hired as an economic consultant to help determine whether employers in a particular industry are discriminating against female employees. You observe that the average man working in the
Johanna’s parents earn about 30% more than the average household. What does this tell you about Johanna’s likely income as an adult given the estimates of U.S. intergenerational income mobility
In the United States, we are inundated with statistical claims and information daily—in politics, in media, and in advertising. How do you determine whether a statistic is useful or misleading?
Your classmate David tells you that you don’t need to worry about people in poverty because most spells of poverty are short. Explain his possible misunderstanding of poverty.
Renika has $60,000 dollars in wealth, but the official poverty statistics count her as being in poverty. Explain why this is. If Renika has quit her job in order to go to graduate school, and $60,000
At Thanksgiving, your uncle complains that he pays taxes for no reason because the government just hands cash out to people who don’t truly deserve or need it. He then says, “The system would
Your friends, knowing you have studied economics, have started asking you for some advice. Briefly explain a government assistance option that may be available to them in each of the following
One way to levy a tax on the things people buy is through a sales tax—a tax on purchases that is typically a percentage of the purchase price. For example, in Michigan everyone, regardless of their
Using the figure below, calculate the gain from redistributing $25,000 from those earning $100,000 to those earning $50,000. Why do you think that this gain in well-being is smaller than the
At a classroom holiday party, there is a slight shortage of lemonade, so that three people will not have any if everyone at the front of the line fills their cups. a. One parent tells students to
Your friend Burrell says that the government should hire fewer social workers in order to reduce the cost of federal assistance programs. He says reducing administrative costs will allow people to
Some goods are rival but nonexcludable; others are excludable but nonrival. Which of these pairs of characteristics describes a “club good”? Which describes a common resource? What is the
A policy maker argues that congestion on the roads can be solved by private ownership of the roads. He argues that if the roads were privately owned, then the externality of congestion would be fully
Explain, using the marginal, opportunity cost, cost-benefit, and interdependence principles, why, in most occupations, the market labor supply curve is upward-sloping.
You have recently opened your own website design business. You charge your clients a price of $500 per project and are considering hiring additional workers to assist you in expanding your
Use the marginal, opportunity cost, cost-benefit, and interdependence principles to explain why labor demand is typically downward-sloping.
Consider Gabriela’s marginal revenue product for each worker hired at Head Area Salon.How many workers will Gabriela hire if the wage is $700 per worker? How many will Gabriela hire if the wage is
The governor is concerned about poverty in the state and proposes that the state minimum wage be raised from $7.25 per hour to $15.00 per hour. She claims that this would be an effective way to
Think about the career you hope to have after college. What annual income do you hope to earn and how many hours per week do you plan on working? Use this information to find your future wage. Use

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