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Posts tagged as “monopoly”

ECON 203 Week 8 Discussion Post

DISCUSSION WEEK 8 Comparative Advantage in International Trade Step 1: Read the articles: 1) The Boomerang Effect. http://www.economist.com/node/21552898 2) Comparative Advantage, American Jobs, and Tariffs. Goldman on tariffs comparative advantage optional, duplicates “comparative advantage” article: http://online.wsj.com/article/SB10001424052748703555804576102500952966450.html Step 2: Go to the internet and find a news article posted within the last month that discusses Comparative Advantage in International Trade, summarize key points and post in Discussions area. Please note that the goal of this discussion is to read, understand, and discuss recent news using microeconomic terminology. The article should be from an on-line newspaper or magazine. Materials posted on educational…

Chapter 3: Exchange and Markets – Solved

3 Exchange and Markets Chapter Summary This chapter explores specialization and exchange as well as the virtues and shortcomings of markets. Here are the main points of the chapter: • It is sensible for a person to produce the product for which he or she has a comparative advantage, that is, a lower opportunity cost than another person. • Specialization increases productivity through the division of labor, a result of the benefits of repetition, continuity, and innovation. • A system of international specialization and trade is sensible because nations have different opportunity costs of producing goods, giving rise to comparative…

ECON 203 – Ch04 Labor and Financial Markets

Ch04 Labor and Financial Markets Multiple Choice Questions 1. The “law of supply” functions in labor markets; that is, a higher __________ for labor leads to a higher quantity of labor supplied. A. price B. demand C. supply D. quantity Answer: A Reference: Explanation: 2. As the __________ substitute for low-skill labor becomes available, the demand curve for low-skill labor will shift to the left. A. high-skill labor B. lower wage C. technology D. market Answer: C Reference: Explanation: 3. Improvements in the productivity of labor will tend to: A. decrease wages. B. decrease the supply of labor. C. increase…

ECON 203 – Ch08 Perfect Competition

Ch08 Perfect Competition Multiple Choice Questions 1. The term _________________ refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product. A. price setter B. business entity C. price taker D. trend setter Answer: C Reference: Explanation: 2. ______________________ refers to the additional revenue gained from selling one more unit. A. Marginal revenue B. Total revenue C. Economic profit D. Accounting profit Answer: A Reference: Explanation: 3. If a firm’s revenues do not cover its average variable costs, then that firm has reached its _________________ . A. price taking point B.…

Chapter 9: Monopoly

Ch09 Monopoly Multiple Choice Questions 1. The largest cattle rancher in a given region will be unable to have a __________ when sufficient numbers of smaller cattle ranchers provide sources of competition. A. oligopoly B. patent C. monopoly D. monopolistic competition Answer: C Reference: Explanation: 2. Which of the following is most unlikely to present a barrier to entry into a market? A. market forces B. patent laws C. technological advantages D. deregulation Answer: D Reference: Explanation: 3. Deregulation occurs when a government eliminates or scales back rules relating to all but one of the following. Which one is it?…