Economics Homework Thirteen Answers - Student Four - Revision history

Taj: categorizing

2010-03-13T17:05:35Z

categorizing

Aschlafly: strong finish to homework for course

2009-12-20T02:21:58Z

strong finish to homework for course

AnnaM at 13:14, December 17, 2009

2009-12-17T13:14:35Z

AnnaM at 13:14, December 17, 2009

2009-12-17T13:14:06Z

AnnaM at 13:13, December 17, 2009

2009-12-17T13:13:19Z

AnnaM: Created page with ''''''Anna M''''' '''1. Which is true about the average fixed costs (AFC) of a firm? (a)a firm can eliminate these costs by shutting down in the short run. (b) as output incre...'

2009-12-17T12:53:22Z

Created page with ''''''Anna M''''' '''1. Which is true about the average fixed costs (AFC) of a firm? (a)a firm can eliminate these costs by shutting down in the short run. (b) as output incre...'

New page

'''''Anna M'''''

'''1. Which is true about the average fixed costs (AFC) of a firm?

(a)a firm can eliminate these costs by shutting down in the short run.
(b) as output increases, AFC decreases
(c) as output increases, AFC increases
(d) AFC is part of average variable costs

Briefly explain your answer.'''

'''2. Some politicians complain about how people are losing their jobs to workers in China. Is this problem the result of "free trade" or "protectionism"?'''

'''3. What is one of the primary responsibilities of the Federal Reserve Bank?'''

'''4. Review: Suppose that after completing this course, you start a new company. In your first year, you "broke even" (had zero profits), and in your second year you want to increase your revenue and profits. After careful study of your market, you decide that you can increase your revenue by increasing your price. Therefore your good must be price elastic/inelastic (choose one).'''

'''5. A monopolistic competitive firm has the following characteristic that is lacking for a perfectly competitive firm:

(a) There are low barriers to entry
(b) MR = MC in the long run.
(c) P > MC
(d) There are many competitors.

Choose one of the above and explain your answer.'''

'''6. You can go on www.orbitz.com and watch the price of airline tickets change from day-to-day. If you pick fixed dates of travel, such as Jan. 15 to fly somewhere and Jan. 18 to return, then you will notice that the closer you get to those dates, the higher the price of the ticket usually is. In other words, the earlier in advance that you can buy a ticket, the cheaper it usually is. Explain how this illustrates a basic difference between long run and short run costs.'''

'''7. Pick any aspect of monopolistic competition (other than problem 5 if you answered that) and explain it.'''

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	:48/50. A strong finish to the homework for the course! Well done.--[[User:Aschlafly\|Andy Schlafly]] 21:21, 19 December 2009 (EST)		:48/50. A strong finish to the homework for the course! Well done.--[[User:Aschlafly\|Andy Schlafly]] 21:21, 19 December 2009 (EST)
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		+	[[Category:Economics Homework Thirteen Answers]]

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 '''''Anna M'''''
 '''1. Which is true about the average fixed costs (AFC) of a firm?'''
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 (a) - in the short run there are a lot of fixed costs, not so many in the long run.
 '''2. Some politicians complain about how people are losing their jobs to workers in China. Is this problem the result of "free trade" or "protectionism"?'''
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 Free trade.
 '''3. What is one of the primary responsibilities of the Federal Reserve Bank?'''
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 To protect the banking system from collapse.
 '''4. Review: Suppose that after completing this course, you start a new company. In your first year, you "broke even" (had zero profits), and in your second year you want to increase your revenue and profits. After careful study of your market, you decide that you can increase your revenue by increasing your price. Therefore your good must be price elastic/inelastic (choose one).'''
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 Inelastic. I can increase the price without a drop in demand.
 '''6. You can go on www.orbitz.com and watch the price of airline tickets change from day-to-day. If you pick fixed dates of travel, such as Jan. 15 to fly somewhere and Jan. 18 to return, then you will notice that the closer you get to those dates, the higher the price of the ticket usually is. In other words, the earlier in advance that you can buy a ticket, the cheaper it usually is. Explain how this illustrates a basic difference between long run and short run costs.'''
 Basically, short run costs tend to be higher, usually because there is a greater demand for them. It pays to think ahead and get things before the demand for them dramatically increases.

← Older revision		Revision as of 13:14, December 17, 2009
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−	'''1. Which is true about the average fixed costs (AFC) of a firm?	+	'''1. Which is true about the average fixed costs (AFC) of a firm?'''
−
−	~~(a)a firm can eliminate these costs by shutting down in the short run.~~
−
−	~~(b) as output increases, AFC decreases~~
−
−	~~(c) as output increases, AFC increases~~
−
−	~~(d) AFC is part of average variable costs~~
−
−	~~Briefly explain your answer.'''~~'''

	(a) - in the short run there are a lot of fixed costs, not so many in the long run.		(a) - in the short run there are a lot of fixed costs, not so many in the long run.

@@ Line 13: / Line 13: @@
 (d) AFC is part of average variable costs
-Briefly explain your answer.'''
+Briefly explain your answer.''''''
 (a) - in the short run there are a lot of fixed costs, not so many in the long run.