Questions from General Economics

Q: Explain how a monopolist chooses the quantity of output to produce and

Explain how a monopolist chooses the quantity of output to produce and the price to charge.

Q: How might advertising make markets less competitive? How might it make

How might advertising make markets less competitive? How might it make markets more competitive? • Give the arguments for and against brand names.

Q: Define oligopoly and monopolistic competition and give an example of each.

Define oligopoly and monopolistic competition and give an example of each.

Q: Melissa buys an iPhone for $120 and gets consumer surplus of

Melissa buys an iPhone for $120 and gets consumer surplus of $80. a. What is her willingness to pay? b. If she had bought the iPhone on sale for $90, what would her consumer surplus have been? c. If t...

Q: For each of the following characteristics, say whether it describes a

For each of the following characteristics, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. a. sells a product differentiated from that of...

Q: An early freeze in California sours the lemon crop. Explain what

An early freeze in California sours the lemon crop. Explain what happens to consumer surplus in the market for lemons. Explain what happens to consumer surplus in the market for lemonade. Illustrate y...

Q: Suppose the demand for French bread rises. Explain what happens to

Suppose the demand for French bread rises. Explain what happens to producer surplus in the market for French bread. Explain what happens to producer surplus in the market for flour. Illustrate your an...

Q: It is a hot day, and Bert is thirsty. Here

It is a hot day, and Bert is thirsty. Here is the value he places on each bottle of water: Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value of fourth bottle $1 a. From...

Q: Ernie owns a water pump. Because pumping large amounts of water

Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to prod...

Q: Explain how sellers’ costs, producer surplus, and the supply curve

Explain how sellers’ costs, producer surplus, and the supply curve are related.