3951-econ

Subject: Kinked Demand Curve / Oligopolistic market Details: The kinked demand curve in an oligopolistic market is represented by the following: P = 100 - Q and P = 120 - 2*Q The oligopoly firms have constant marginal costs at MC = 40 A. Determine the profit maximizing level of output. B. Compute the profit maximiz ...continues

Problem set

2. A firm finds that at its MR = MC output, its TC = $1000, TVC = $800, TFC = $200, and total revenue is $900. This firm should: (1 point) a. shut down in the short run. b. produce because the resulting loss is less than its TFC. c. produce because it will realize an economic profit. d. liquidate its a ...continues

Inelasticity

What can add to (or reduce) a product's relative inelasticity?

Indifference curve/graph

Explain an indifference curve in everyday language. Graphically show and briefly explain how someone would determine their optimal consumption.

Competitive Markets/Economic losses

How do perfectly competitive markets respond to economic losses for firms?

Non-price competition

Give at least two examples of non-price competition? Why doesn't non-price competition work in a purely competitive market?

Kinked demand curve

Explain the concept of a kinked demand curve? What does in imply about prices?

Deadweight loss

Why would there be more deadweight loss on taxes on potato chips than on taxes on cigarettes?

Labor unions/Labor markets

How do labor unions alter a labor market?

Cartel

What's a cartel? Why is it hard to maintain?