01:220:102 Study Guide - Midterm Guide: Autarky, North American Free Trade Agreement, Oligopoly

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turquoisegnu128

15 Oct 2018

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01:220:102 Full Course Notes

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Tc = fc + vc: physical capital, total cost, pooling, total product curve, the change in utility from consuming an additional unit. Market power: financial risk, total cost per unit of output produced. A poverty program is a government program designed to aid the poor: a social insurance program is a government program designed to provide protection against unpredictable financial distress. Atc = fc/q: average fixed cost, adverse selection c. Example: national defense: nonexcludable, the long run, optimal output rule, demand curve, the percentage of the population with income below the poverty threshold. A. autarky: a situation in which a country does not trade with other countries: poverty rate, prisoner"s dilemma, quantity supplied, demand decreases when income increases (and vice versa). An inferior good: a quantity effect, offshore outsourcing: d. Example: digital music: infant industry, tit for tat c. Nonrival fixed cost: when an increase in price reduces the quantity demanded a lot (and vice versa), expected utility.

Related Questions

I have this short-run total cost function TC(x) = 25x + 100, and x is the quantity produced.

a) Find the Fixed Cost of production: FC=

b) Find Variable Cost production: VC(x)=

c) Find the equation for Average Fixed Cost: AFC(x)=

d) Find the equation for Average Variable Cost: AVC(x)=

e) Show the equation for Average Cost: AC(x)=

f) Show the equation for Average Cost of producing x=10 units of output: AC(10)=

g) Find the Marginal Cost of production: MC(x)=

skyotter83

1. Due to the law of diminishing marginal utility, _____.

a. the marginal utility curve is upward sloping

b. when marginal utility becomes positive, total utility declines

c. when marginal utility becomes negative, total utility increases

d. marginal utility is zero when total utility is zero

e. the first unit of a product offers more satisfaction than the last unit of the same product

2. True or False. If a product has an elastic demand, it means that consumers are relatively insensitive to a change in the price of the product.

3. If one were to plot the data with utility on the vertical axis and quantity of the good on the horizontal axis:

a. the total utility curve would begin to decline after the second unit of the good.

b. the marginal utility curve would intersect the horizontal axis at the second unit of the good.

c. the total utility curve would rise from the first unit to the fifth unit.

d. the marginal utility curve would intersect the horizontal axis at the third unit of the good.

e. the marginal utility curve would begin to decline after the third unit of the good.

4. If the average variable cost of a firm is falling, then the:

a. marginal cost must be falling.

b. average fixed cost must be rising.

c. marginal cost lies below the average variable cost.

d. marginal cost must be rising.

e. marginal cost lies above the average variable cost.

5. According to economic theory, the difference between the long run and the short run is:

a. the ability for a firm to vary all resources

b. about two years

c. about two months

d. not relevant for executive decision-makers

e. strictly theoretical so that in practice there is no difference between them

jadefly405

An economist estimated that the cost function of a single-product firm is:

C(Q) = 70 + 30Q + 20Q² + 10Q³.

Based on this information, show your work and determine the following:

a. The fixed cost of producing 10 units of output.

b. The variable cost of producing 10 units of output.

c. The total cost of producing 10 units of output.

d. The average fixed cost of producing 10 units of output.

e. The average variable cost of producing 10 units of output.

f. The average total cost of producing 10 units of output.

g. The marginal cost when Q = 10.

01:220:102 Study Guide - Midterm Guide: Autarky, North American Free Trade Agreement, Oligopoly

01:220:102 Full Course Notes

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