Study Guides (238,613)
Canada (115,253)
GMS 200 (294)


9 Pages
Unlock Document

Ryerson University
Global Management Studies
GMS 200
Margaret Buckby

1. Explain the factors which shift the supply curve o Availability of resources (+) o Cost of resources (-) o Technology (+) o Weather (+) o # of sellers (+) o Expected future price: if future price increase, current SS decreases o Taxes (-) 2. Describe the main features of a pure market economy o Private ownership of research o Freedom of choice o Freedom of occupation o Freedom of enterprise o Guided by self-interest o Customer maximum satisfaction o Producer maximum profit o Government follows Laissez-faire o Invisible hand 3. Describe the factors which make the demand for a product relatively elastic? Factors e > 1 e < 1 Type of product Luxury Necessities Freq of Use Occasionally Habit # of substitutes Many Few Proportion of Income Big Ticket Small ticket items Time More Less 4. Explain graphically how indifference analysis can be used to derive a demand curve 5. Show with the help of relevant graphs, how the following would affect the EP and EQ of a small automobiles if… a. The price of large automobiles rises b. There is a decline in the number of firms making them 6. Compare the “offer to purchase” and the “deficiency payment” method of agricultural support, with the help of relevant graphs. 7. Explain the factors which shift the demand curve 1. Graphically, show all the possible equilibrium positions for a PC firm in the short run, using the MR=MC approach. Highlight the supply curve 2. List the ‘economies’ and diseconomies’ of scale and how they determine the LAC with the help of a graph 3. Using relevant graphs, show how a PC firm reaches long run equilibrium 4. Show graphically, how governments regulate a monopoly. 5. Show through graphs, how even a monopoly may break even or make losses in the short run Other Graphs (test 1) Expansion of Demand: (test 1) Increase in Demand: Short Run: (test 1) -Atleast one resource is fixed - relatively inelastic Long Run: (test 1) - All resources are variable - Relatively elastic Product Market & Factory Market (Test 1) AR curve for a PC firm (Test 2) AR curve for a monopolist (Test 2) LAC of a firm in an industry (test 2) a. Where big and small firm exists b. Where only big firms can survive Multiple Choices Questions 2. Accounting profits equal 3. If you owned a farm, which of the following would be a fixed cost? b) hail insurance 4. ATC is a. TC/Q b. (TVC + TFC) /Q c. AFC + AVC d. All of the above 5. The minimum efficient scale of a firms b) the smallest level of output at which LAC is minimized 6. For a PC firm, TR a. is price times quantity b. increases by a constant amount as output increases c. curves in an upward sloping straight line from the origin d. has all the above characteristics 7. In the short run, a PC firm will maximize profits at that level of output where c. TR exceeds TC by the maximum amount 8. If P < ATC but P > AVC for a PC firm, it will c. minimize losses 9. A PC firm’s supply curve
More Less

Related notes for GMS 200

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.