ECON1010 Study Guide - Final Guide: Marginal Cost, Foodservice, Nash Equilibrium
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budget line
marginal utility
complete property of preferences
market demand
consumption bundle
substitution effect
Giffen good
total effect
income effect
transitive property of preferences
indifference curves
utility
the marginal rate of substitution
utility function
1. |
_____ |
The satisfaction or benefit that consumers receive from consuming goods or services.
|
2. |
________________ _ |
A particular combination of specific quantities of goods or services |
3. |
________________ _ |
Consumers can rank all conceivable bundles of goods or services |
4. |
_____ |
If A is preferred to B, and B is preferred to C, then A is always preferred to C. |
5. |
_____ |
Equation showing a consumerâs perception of the total utility forthcoming from consuming each bundle of goods and services. |
6. |
_____ |
A set of consumption bundles each and every one of which provides a consumer with exactly the same level of total utility. |
7. |
_____ |
The number of units of Y that must be given up for total utility to remain the same when one more unit of X is consumed. |
8. |
_____ |
The addition to total utility attributable to consuming one more unit of a good, holding the consumption of all other goods constant. |
9. |
_____ |
The line showing all bundles of goods that can be purchased at given prices if the entire income is spent. |
10. |
_____ |
The change in the consumption of a good that would result if the consumer remained on the original indifference curve after the price of the good changes. |
11. |
_____ |
The change in consumption of goods results strictly from the change in purchasing power after the price of a good changes. |
12. |
________________ _ |
The sum of the substitution and income effects. |
13. |
_____ |
A good for which quantity demanded varies directly with price, causing an upward sloping demand curve. |
14. |
_____ |
A list of prices and the corresponding quantity consumers are willing and able to purchase at each price. |
1) Collegetown is planning a parade for their conference champion football team. The residents must decide how much to spend on parade floats. The marginal cost of each float is $410. There are two types of football fans in Collegetown, regular and diehard. The marginal benefit of each additional parade float is represented in the following table:
Q | MBR | MBDH |
1 | 25 | 55 |
2 | 20 | 50 |
3 | 15 | 45 |
4 | 10 | 40 |
5 | 5 | 35 |
If Collegetown has 5 regular fans and 9 diehard fans, what is the socially optimal number of parade floats?
2)Using the midpoint formula, find the elasticity coefficient for a producer when a price increase from $3.50 to $4.50 causes a fall in quantity demanded from 52 units to 40 units.
3)A monopolist sells 15 holiday greeting cards for $4.50 apiece. If the monopolist desires to sell a 16th card, then the price must be lowered to $4.40. The marginal revenue earned from selling the additional card is $____.
5)A firm in a perfectly competitive labor market has a marginal revenue product of labor curve of MRP = 84 â 3L. If the market wage rate is $9, the profit-maximizing level of employment is ____ workers.
6)If the price of good X rises, then the resulting decrease in the consumerâs quantity demanded will___ the consumer's total utility from consuming X and____ the consumer's marginal utility from that last unit of X consumed.