Questions from General Economics

Q: The cost of producing flat-screen TVs has fallen over the

The cost of producing flat-screen TVs has fallen over the past decade. Let’s consider some implications of this fact. a. Draw a supply-and-demand diagram to show the effect of falling production costs...

Q: There are four consumers willing to pay the following amounts for haircuts

There are four consumers willing to pay the following amounts for haircuts: There are four haircutting businesses with the following costs: Each firm has the capacity to produce only one haircut....

Q: One of the largest changes in the economy over the past several

One of the largest changes in the economy over the past several decades is that technological advances have reduced the cost of making computers. a. Draw a supply-and-demand diagram to show what happe...

Q: A friend of yours is considering two cell phone service providers.

A friend of yours is considering two cell phone service providers. Provider A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed serv...

Q: Consider how health insurance affects the quantity of healthcare services performed.

Consider how health insurance affects the quantity of healthcare services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out...

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

For each of the following characteristics, say whether it describes a monopoly firm, a monopolistically competitive firm, both, or neither. a. faces a downward-sloping demand curve b. has marginal rev...

Q: What is efficiency? Is it the only goal of economic policymakers

What is efficiency? Is it the only goal of economic policymakers?

Q: Name two types of market failure. Explain why each may cause

Name two types of market failure. Explain why each may cause market outcomes to be inefficient.

Q: Explain how buyers’ willingness to pay, consumer surplus, and the

Explain how buyers’ willingness to pay, consumer surplus, and the demand curve are related.

Q: Draw a supply curve for turkey. In your diagram, show a

Draw a supply curve for turkey. In your diagram, show a price of turkey and the producer surplus at that price. Explain in words what this producer surplus measures.