Microeconomics

Perfect competition is a market structure where there are many firms, none of which is large. Because there is freedom of entry and exit and perfect information, firms are going to make normal profits and prices will be kept low by competitive pressures. Also, in perfect competition market all companies. Moreover, the knowledge and information are perfect. Monopoly is the polar opposite of perfect competition. Monopoly is a market structure in which a single market structure in which a single…

• Question 1 2 out of 2 points Which of the following is considered to be a cost of information? Answer Selected Answer: The time spent to collect the information. Correct Answer: The time spent to collect the information. • Question 2 2 out of 2 points Assume that a cargo ship carrying the merchandise of a cloth merchant has been wrecked. Such a setback will be accounted as the merchant’s: Answer Selected Answer: sunk cost. Correct Answer:…

With the market globalization continuously ，competition is fierce increasingly ，more and more enterprises realize and try to find suitable business orientations ，in order to seek greater profit space. Enterprises speed up the efficiency of production ,pay attention to the product feature , intensify efforts in promotion , understand market demand , safeguard consumer value ，mutual compete ，to gain greater market share . Customer orientation is one of the business-oriented what is the enterprises…

Over the past few years, there has been a steady increase in the number of individuals who have been involved in athletics. Due to this growth, it was expected that the number of sales in sporting goods would also increase. To the dismay of the traditional sporting goods industry, sales have actually dropped, according to Sara Germano’s article, “Sporting Goods Stores Hit Slump,” published on March 9th of this year. With this decrease in sales, some companies are trying to adopt new sales…

Freakonomics can be seen as the study of economics based on the principle of incentives. In the movie, Steven Levitt and Stephen Dubner gives multiple examples of how incentives govern our thoughts and actions and its role in economics. The first example explored was the unlikeliness of a house agent to wait to sell a client house for a higher price. The simple reason is the low incentive. If the agent was to wait another week to sell the house for a price that is only 10k higher, they would get…

I have read, not skimmed 100% of the Wheelan book. From reading “Naked Economics,” I was able to better understand various concepts in economics and how they apply to the world today. In particular, I learned about tax policy, price discrimination, productivity, and globalization which has allowed me to better understand how economic policies affect my life and the world around me. I thought it was interesting when Wheelan mentioned that the best public policies economically are those that…

2.3. ECONOMICS INVOLVED (a) (b) (c) FIGURE 2.6. (a) Demand Relationship (b) Supply Relationship (c) Demand and Supply Relationship Therefore, it can be said that price is the reflection of demand and supply. It is believed that behind the allocation of various resources underlies the relationship between these two (demand and supply). For example, if there is a shortage of oranges in the market, their price would increase. This reason behind this is the reduced supply and increased demand for…

Pareto optimality is a tool used by normative welfare economist who measures welfare in terms of preference satisfaction. This tool is used for assessing social welfare, resource allocation and to analyze public policy. It was a principle proposed by Italian economist and sociologist, Vilfredo Pareto in order to make high levels of inequality justifiable. An allocation is said to be a Pareto improvement if no alternative allocation could make at least one person better off while not making…

Price elasticity refers to the change in the amount of a product demand due to change in its price. In other words, how much in quantity demand will change due to a single unit change in price. The Supervisors of microwavable food company should make the clients feel like they cannot live without their food, in case the supervisors are planning on increasing the prices for their products. This is because the company is operating in a very competitive market meaning that a slight increase in the…

1) Explain Total Utility and Marginal Utility and the relationship between them. Total Utility is the amount of utility one receives from all the goods one receives. The Marginal Utility is utility one receives when one receives another good. When Total Utility is at its maximum Marginal Utility is at zero because there is not any extra utility to receive. Total utility increases at a decreasing rate until it reaches its maximum point, then it decreases at a decreasing rate, while Marginal…