Questions from General Economics

Q: Briefly state the basic characteristics of pure competition, pure monopoly,

Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Under which of these market classifications does each of the following most accurat...

Q: Strictly speaking, pure competition is relatively rare. Then why study

Strictly speaking, pure competition is relatively rare. Then why study it?

Q: “Even if a firm is losing money, it may be

“Even if a firm is losing money, it may be better to stay in business in the short run.” Is this statement ever true? Under what condition(s)?

Q: Consider a firm that has no fixed costs and that is currently

Consider a firm that has no fixed costs and that is currently losing money. Are there any situations in which it would want to stay open for business in the short run? If a firm has no fixed costs, is...

Q: Why is the equality of marginal revenue and marginal cost essential for

Why is the equality of marginal revenue and marginal cost essential for profit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR = MC rule when...

Q: Refer to the incomplete table below. /

Refer to the incomplete table below. a. Fill in the missing numbers in the table. b. What is the break-even level of income in the table? What is the term that economists use for the saving situatio...

Q: Suppose that disposable income, consumption, and saving in some country

Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respectively. Next, assume that disposable income increases by $20 billion, con...

Q: Suppose that the linear equation for consumption in a hypothetical economy is

Suppose that the linear equation for consumption in a hypothetical economy is C = 40 + .8Y. Also suppose that income (Y) is $400. Determine (a) the marginal propensity to consume, (b) the marginal p...

Q: Linear equations for the consumption and saving schedules take the general form

Linear equations for the consumption and saving schedules take the general form C = a + bY and S= -a + (1-b)Y where C, S, and Y are consumption, saving, and national income, respectively. The constant...

Q: Use your completed table for problem 1 to solve this problem.

Use your completed table for problem 1 to solve this problem. Suppose the wealth effect is such that $10 changes in wealth produce $1 changes in consumption at each level of income. If real estate pri...