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Economics Homework Seven Answers - Student Seven

2009-10-29T02:06:27Z

ShannaP: ShannaP

1. There are four elements of perfect competition. The elements are many buyers and sellers, goods that are perfect substitutes for each other, perfect knowledge in the market, and perfe mobility of resources.

2. Competition is a great motivator to increase efficiency, innovation, and allow you to do what you thought was impossible. I use competition in my cooking. When I make a meal or dish, I like to compare my food against the preperations of other cooks.

4. Yes, the converse of Gresham's Law with respect to speech and conversation is true. It is true that good speech drives out bad or evil speech. The Bible says in Proverbs 15:1, "a soft answer turns away wrath, but harsh words stir up anger." When we use good speech and words we drive away the bad with our kindness.

5. Total cost is the cost of everything, the fixed and variable cost. Fixed cost are the things that cannot be altered easily. Marginal cost is the cost to produce the next unit.

6. The consumer surplus would be $850, but there really is no loss because the dance was never held.

7. No, there is not a perfect competion between public school and homeschool. First, a public school teacher teaches 20 plus kids with 1 teacher and maybe a helper. They are told what to teach, the Bible cannot be taught, and they have removed God from the classroom. The Homeschool teacher has only a few children and can provide one on one teaching with each child individually. They decide what is important to teach, they can teach the Bible, and they can incorporate God into all the lessons.

Economics Homework Six Answers - Student Four

2009-10-23T03:19:21Z

ShannaP: ShannaP

1. Fixed cost can be easily identified by seeing what the total cost are when the ouput is zero. An example of variable cost in a restaurant would be the cost of food, additional employees, and energy that increase as the business grows.

2. The plan would fail because there is a decreasing returns of scale in the restaurant, because more waitresses would result in more wasted time talking to each other and waitresses getting in the way of each other.

3. An example of a short run cost in a home school would be the cost of purchasing books, learning aids, etc. for a preschool child to help teach them the basics. A long run cost with a home school is continuing to purchase what is needed to properly teach the child through the years so they are equipped and prepared to go out into the world, get a job, and be a productive member of society.

5. In the short run, it may cost quite a bit of money to get a degree from college, but in the long run, the money, time, and effort pays off with more marketable skills and ultimately a better job and quality of life.

6. Your fixed cost would be $1,000,000 for the factory. Your average variable cost would be $20,000 (1,000,000/50) Your average total cost would be $40,000 ($1,000,000 fixed + $1,000,000 variable/50 cars) Your Marginal cost would be $19961 ($1,000,000 + $18000/51)

7. When the fee is raised to $1200 marginal cost, average variable cost, and average total cost would all increase.

8. By watching TV for an hour instead of working and earning $8/hour, your accounting loss would by $8 plus an unknown amount of explicit cost for things such as electricty to run the TV. The economic loss would not be possible to figure out without additional information.

Economics Homework Five Answers - Student Twelve

2009-10-16T02:55:04Z

ShannaP: ShannaP

1. Ecconomic efficiency is getting the most productivity out of something. It is using the most of your time. An example, using cooking terms, is when you have a chicken that you have purchased. You can cook it and eat the meat and then use the bones and leftover to make a chicken stock. You are getting the full use out of the chicken.

2. If the cross elasticity of goods A & B is 3.8, and goods X & Y is -2.7 we can conclude that goods A & B are substitutes since they are a positive number while goods X & Y are complements since they are a negative number.

3. The marginal cost to make another unit would be $20.

4. In this scenario, the steaks are normal goods and the hamburger is an inferior good.

5. The basic assumption of the Coarse Theorem is that in the absence of transaction cost, and effective or optimal ecconomic result occurs regardless of who owns the property rights. This is important because the more transaction cost that we put into the system, the system becomes all that more inefficient.

6. A owner sells as many goods as he can until marginal revenue decreases to the level of his cost. For example when a restaurant owner needs to make a decision as to whether or not he will stay open later, he must decide if it is pay the extra employees, energy cost for the few customers he may get versus closing at an earlier time.

7. It says that government regulations transaction cost hurt overall efficiency and properity. Therefore government regulation is undesirable.

Economics Homework Three Answers - Student Three

2009-09-24T03:28:54Z

ShannaP: ShannaP Homework Lecture 3

1. An example of a good that has a large price elasticity is computers or other forms of technology. When the price of a computer goes down, even a little, the demand typically increases.

2. When your income increase you will spend money and more likely luxury or normal goods. However, you income decreases, you will spend less money and only by your needs and may buy inferior goods until your income increases again.

3. A nearly perfect elastic demand curve is flat horizontal in shape; a nearly perfect inelastic demand curve is flat vertical in shape.

4. Necessities are the goods we need. They are income inelastic. They are needed and purchased regardless of our income level. Examples would be basic food and clothing to get by. A luxury is a good we want. It income elastic don't generally purchase luxuries in hard economic times.

5. A substitute for french fries is potatoes that have not been cooked, cut, or peeled. A compliment for french fries is Ketchup or ranch dressing.

6. An example of a normal good is shoes such as Nike tennis shoes. The demand goes up as income goes up. An example of an inferior good is a bag of frozen french fries bought at the store. I can buy them for $.99 or less, but when I have more income, I can go to McDonalds or a local cafe to purchase them at a higher cost.

7. A price ceiling that is set below the equilibrium will cause a shortage because the quantity supplied is less than the quantity demanded thus creating a shortage of the good.

Economics Homework Two Answers - Student Twenty-Five

2009-09-18T03:08:25Z

ShannaP: ShannaP

1. The supply of a good, and the demand for that good determine bot the quantity and the price at which the good is sold.

2. 30-Q = 6+Q So P = 30-Q P = 6+Q assuming P = P When solving for the equation Q = 12 P = 18 So Price is $18 at a quantity of 12.

3. When the supply of a good or service increases such as an increase in the number of oil wells, the market price of oil goes down because the slope of the demand curve. When the demand for gasoline goes up the price increases because of greater demand.

4. Following the downward slope of the demand curve, as quanity increases price decreases. This forces the store to lower the price of the grapes in order to sell them before they go bad and gives the consumer a chance to get a lower price.

5. They made 600 seats at $5 each making $3000 per game. If the law was passed to force the seats to sell for $2 this would cause higher demand and cause possible lines. This would not be fair in my opinion because it would force the stadium to sell at a loss.

6. Time is money because when we work, we are exchanging our time for money.

7. When the government sets limits or fixed prices that causes shortages and lines because there is less supply when the prices are artificially lowered by government control. Fixing the prices prevents supply from rising to satisfy demand. Therefore the demand is greater than the supply and patients have to wait.

Economics Homework One Answers - Student Two

2009-09-07T21:34:15Z

ShannaP: ShannaP Econ Homework 1

1. An example of a good is buying a car. An example of a service would be servicing or repairing that car.
2. In this case, eating at home would incur more transaction cost. My reasoning for this is that when you eat at home you must take the time to go to the store to purchase all the ingredients, then you have to time to travel back home. Once at home you must do prep for the food you just bought and then cook the meal. After the meal you must clean up the dishes, the leftovers, etc. Strictly from a monetary point of view, it is cheaper for my family to purchase the food at a market and eat it at home.
3. The definition of scarcity is goods or services where the availability is less than the demand. An example of this principle would be a wireless phone with all the latest and greatest technology. When it is “brand new” the demand for the phone is often much greater than the availability of the phone. This causes line ups at the stores and people scrambling to buy it. However, when the next generation of phone comes out, the phone that was once scarce is no longer.
4. The invisible hand is the unseen force that guides individuals who are acting to help themselves to work in ways that benefit society. An example of the invisible hand is God or the spirit. We do not see him, he is an unseen force, but he causes us to do things that we think are self serving but ultimately serve others an the ultimate purpose of God.
5. Matthew 13:18-23; 44-46 – From an economic standpoint the remind us to be careful where we spend our money. It reminds us to not foolishly spend it on an item that you do not have a need for, but instead to save it for another purpose. Extra Credit: Why does the Gospel of Matthew have more economic parables? The reason is that Matthew was a tax collector and thus had an intimate knowledge and interest in the economic world of his time.
6. The phrase Caveat Emptor (buyer beware) to me is like a stop sign. It is letting you know to be careful what you purchase and to look first as it might be harmful to you or somebody else.