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Chapter 15. Monopoly. Principles of Economics. Exercises 1-6.
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://streamlabs.com/economicscourse Chapter 15. Monopoly. Principles of Economics. Exercises 1-6. 1. A publisher faces the following demand schedule for the next novel from one of its popular authors: The author is paid $2 million to write the book, and the marginal cost of publishing the book is a constant $10 per book. a. Compute total revenue, total cost, and profit at each quantity. What quantity would a profit maximizing publisher choose? What price would it charge? b. Compute marginal revenue. (Recall that MR =ΔTR/ΔQ.) How does marginal revenue compare c. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantity do the marginal revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author were paid $3 million instead of $2 million to write the book, how would this affect the publisher’s decision regarding what price to charge? Explain. f. Suppose the publisher was not profit-maximizing but was concerned with maximizing economic efficiency. What price would it charge for the book? How much profit would it make at this price? 2. A small town is served by many competing supermarkets, which have the same constant marginal cost. a. Using a diagram of the market for groceries, show the consumer surplus, producer surplus, and total surplus. b. Now suppose that the independent supermarkets combine into one chain. Using a new diagram, show the new consumer surplus, producer surplus, and total surplus. Relative to the competitive market, what is the transfer from consumers to producers? What is the deadweight loss? 3. Johnny Rockabilly has just finished recording his latest CD. His record company’s marketing department determines that the demand for the CD is as follows: "The company can produce the CD with no fixed cost" "and a variable cost of $5 per CD." a. Find total revenue for quantity equal to 10,000, 20,000, and so on. What is the marginal revenue for each 10,000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would the price be? What would the profit be? c. If you were Johnny’s agent, what recording fee would you advise Johnny to demand from the record company? Why? 4. A company is considering building a bridge across a river. The bridge would cost $2 million to build and nothing to maintain. The following table shows the company’s anticipated demand over the lifetime of the bridge: a. If the company were to build the bridge, what would be its profit-maximizing price? Would that be the efficient level of output? Why or why not? b. If the company is interested in maximizing profit, should it build the bridge? What would be its profit or loss? c. If the government were to build the bridge, what price should it charge? d. Should the government build the bridge? Explain. 5. Larry, Curly, and Moe run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Curly wants the saloon to bring in as much revenue as possible. Moe wants to make the largest possible profits. Using a single diagram of the saloon’s demand curve and its cost curves, show the price and quantity combinations favored by each of the three partners. Explain. 6. The residents of the town Ectenia all love economics, and the mayor proposes building an economics museum. The museum has a fixed cost of $2,400,000 and no variable costs. There are 100,000 town residents, and each has the same demand for museum visits: QD = 10 − P, where P is the price of admission. a. Graph the museum’s average-total-cost curve and its marginal-cost curve. What kind of market would describe the museum? b. The mayor proposes financing the museum with a lump-sum tax of $24 and then opening the museum to the public for free. How many times would each person visit? Calculate the benefit each person would get from the museum, measured as consumer surplus minus the new tax. c. The mayor’s antitax opponent says the museum should finance itself by charging an admission fee. What is the lowest price the museum can charge without incurring losses? (Hint: Find the number of visits and museum profits for prices of $2, $3, $4, and $5.) d. For the break-even price you found in part (c), calculate each resident’s consumer surplus. Compared with the mayor’s plan, who is better off with this admission fee, and who is worse off? Explain. e. What real-world considerations absent in the problem above might provide reasons to favor an admission fee?
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Chapter 14.  Principles of Economics. Firms in Competitive Markets. Exercises 1- 6
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation Chapter 14. Principles of Economics. Firms in Competitive Markets. Exercises 1- 6. Gregory Mankiw. 1. Many small boats are made of fiberglass, which is derived from crude oil. Suppose that the price of oil rises.a. Using diagrams, show what happens to the costcurves of an individual boat-making firm and tothe market supply curve. b. What happens to the profits of boat makers in theshort run? What happens to the number of boatmakers in the long run? 2. You go out to the best restaurant in town and order a lobster dinner for $40. After eating half of the lobster, you realize that you are quite full. Your date wants you to finish your dinner because you can’t take it home and because “you’ve already paid for it.” Whatshould you do? Relate your answer to the material inthis chapter. 3. Bob’s lawn-mowing service is a profit-maximizing,competitive firm. Bob mows lawns for $27 each. Histotal cost each day is $280, of which $30 is a fixed cost. He mows 10 lawns a day. What can you say aboutBob’s short-run decision regarding shutdown and hislong-run decision regarding exit? 4. Consider total cost and total revenue given in the followingtable: a. Calculate profit for each quantity. How much should the firm produce to maximize profit? b. Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2½.) At what quantity do these curves cross? How does this relate to your answer to part (a)? b. Calculate marginal revenue and marginal cost for each quantity. Graph them. (Hint: Put the points between whole numbers. For example, the marginal cost between 2 and 3 should be graphed at 2½.) At what quantity do these curves cross? How does this relate to your answer to part (a)? c. Can you tell whether this firm is in a competitive industry? If so, can you tell whether the industry is in a long-run equilibrium? 5. Ball Bearings, Inc. faces costs of production as follows: a. Calculate the company’s average fixed costs, average variable costs, average total costs, and marginal costs at each level of production. b. The price of a case of ball bearings is $50. Seeing that he can’t make a profit, the chief executive officer (CEO) decides to shut down operations. What is the firm’s profit/loss? Was this a wise decision? Explain. c. Vaguely remembering his introductory economics course, the chief financial officer tells the CEO it is better to produce 1 case of ball bearings, because marginal revenue equals marginal cost at that quantity. What is the firm’s profit/loss at that level of production? Was this the best decision? Explain. 6. Suppose the book-printing industry is competitive and begins in a long-run equilibrium.a. Draw a diagram showing the average total cost,marginal cost, marginal revenue, and supply curveof the typical firm in the industry. b. Hi-Tech Printing Company invents a new process that sharply reduces the cost of printing books. What happens to Hi-Tech’s profits and the price of books in the short run when Hi-Tech’s patent prevents other firms from using the new technology? c. What happens in the long run when the patent expires and other firms are free to use the technology?
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Chapter 5. Exercises 1-7. Elasticity and its application.
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://streamlabs.com/economicscourse Exercise 1-7.Chapter 5.Elasticity and its application. Gregory Mankiw. Principles of Economics . 1. For each of the following pairs of goods, which good would you expect to have more elastic demand and why? A. Required textbooks or mystery novels. B. Beethoven recordings or classical music recordings in general. C. Heating oil during the next six months or heating oil during the next five years. D. Root beer or water. 2. Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston A. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii) vacationers? (Use the midpoint method in your calculations.) B. Why might vacationers have different elasticity than business travelers? 3. Suppose that your demand schedule for compact discs is as follows: Use the midpoint method to calculate your price elasticity of demand as the price of compact discs increases from $8 to $10 if (i) your income is $10,000, and (ii) your income is $12,000. b. Calculate your income elasticity of demand as your income increases from $10,000 to $12,000 if (i) the price is $12, and (ii) the price is $16. 4. Emily has decided always to spend one-third of her income on clothing. A. What is her income elasticity of clothing demand? b. What is her price elasticity of clothing demand? 5. The New York Times reported (Feb.17, 199, p.25) that subway ridership declined after a fare increase: “There were nearly four million fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50, than in previous December, a 4.3 percent decline.”a. Use these data to estimate the price elasticity of demand for subway riders. a. Use these data to estimate the price elasticity of demand for subway riders. b. According to your estimate, what happens to the Transit Authority’s revenue when the fare rises? 6. Two drivers- Tom and Jerry-each drive up to a gas station. Before looking at the price, each places an order. Tom says, “I’d like 10 gallons of gas.” Jerry says, “I’d like $10 worth of gas.” What is each driver’s price elasticity of demand? 7. Economists have observed that spending on restaurant meals declines more during economic downturns than does spending on food to be eaten at home. How might the concept of elasticity help to explain phenomenon?
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Chapter 8.  Exercises 1-7. Principle of economics.
 
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Solution Exercises1-7. Principle of economics. 1. The market for pizza is characterized by a downward sloping demand curve and an upward-sloping supply curve. a. Draw the competitive market equilibrium. Label the price, quantity, consumer surplus, and produce surplus. Is there any deadweight loss? Explain b. Suppose that the government forces each pizzeria to pay a $1 tax on each pizza sold. Illustrate the effect of this tax on the pizza market, being sure to label the consumer surplus, producer surplus, government revenue, and the deadweight loss. How does each area compare the pre-tax case? c. If the tax were removed, pizza enters and sellers would be better off, but the government would lose tax revenue. Suppose that consumers and producers voluntarily transferred some of their gains to the government. Could all parties (including the government) be better off than they were with a tax? Explain using the labeled areas in your graph. 2. Evaluate the following two statements. Do you agree? Why or why not? a. “If the government taxes land, wealthy land owners will pass the tax on their poorer renters”. b. “If the government taxes apartment buildings, wealthy landlords will pass the tax on to their poorer renters”. 3. Evaluate the following two statements. Do you agree? Why or why not? a. “A tax has no deadweight loss cannot raise any revenue for the government”. 4. Consider the market for rubber bands a. If this market has very elastic supply and very inelastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Use the tools of consumers surplus and producer surplus in your answer. b. If this market has very inelastic supply and very elastic demand, how would the burden of a tax on rubber bands be shared between consumers and producers? Contrast your answer with your answer to part (a) 5. Suppose that the government imposes a tax on heating oil. a. Would the deadweight loss from this tax likely be greater in the first year after it is imposed or in the fifth year? B. Would the revenue collected from this tax likely be grater in the first year after it is imposed or in the fifth year? 6. After economics class one day, your friend suggests that taking food would be a good way to raise revenue because the demand for food is quite inelastic. In what sense is taxing food a “good” way to raise revenue? In what sense is it not a “good” way to raise revenue? 7. Senator Daniel Patrick Moynihan once introduced a bill that would levy a 10,000 percent tax on certain hollow-tipped bullets. a. Do you expect that this tax would raise much revenue? Why or why not? b. Even if the tax would raise no revenue, what might be Senator Moynihan’s reason for proposing it?
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Chapter 13  1-5 exercises. The Costs of Production. Gregory Mankiw. Principles of Economics.
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation Chapter 13. The Costs of Production. Gregory Mankiw. Principles of Economics. 1-5 exercises. 7th edition 1. This chapter discusses many types of costs: opportunity cost, total cost, fixed cost, variable cost, average total cost, and marginal cost. Fill in the type of costthat best completes each sentence: a. What you give up for taking some action is called the ______. b. _____ is falling when marginal cost is below it and rising when marginal cost is above it. c. A cost that does not depend on the quantity produced is a(n) ______. d. In the ice-cream industry in the short run, ______ includes the cost of cream and sugar but not the cost of the factory e. Profits equal total revenue minus ______. f. The cost of producing an extra unit of output is the ______. 2. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. A. Define opportunity cost. b. What is your aunt’s opportunity cost of running a hardware store for a year? If your aunt thinks she can sell $510,000 worth of merchandise in a year, should she open the store? Explain.. 3. A commercial fisherman notices the followingrelationship between hours spent fishing and the quantity of fish caught: a. What is the marginal product of each hour spent fishing? b. Use these data to graph the fisherman’s production function. Explain its shape c. The fisherman has a fixed cost of $10 (his pole). The opportunity cost of his time is $5 per hour. Graph the fisherman’s total-cost curve. Explain its shape. 4. Nimbus, Inc., makes brooms and then sells them door to-door. Here is the relationship between the number of workers and Nimbus’s output in a given day: a. Fill in the column of marginal products. What pattern do you see? How might you explain it? b. A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to fill in the Column for total cost. c. Fill in the column for average total cost. (Recall that ATC=TC/Q.) What pattern do you see? d. Now fill in the column for marginal cost. (Recall that MC=ΔTC/ΔQ.) What pattern do you see? e. Compare the column for marginal product and the column for marginal cost. Explain the relationship. f. Compare the column for average total cost and the column for marginal cost. Explain the relationship. 5. You are the chief financial officer for a firm that sells digital music players. Your firm has the following average-total-cost schedule: A. Your current level of production is 600 devices, all of which have been sold. Someone calls, desperate to buy one of your music players. The caller offers you $550 for it. Should you accept the offer? Why or why not?.
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Chapter 14. Firms in Competitive Markets.   Exercises 7-12. Principles of Economics
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation 7. A firm in a competitive market receives $500 in total revenue and has marginal revenue of $10. What is the average revenue, and how many units were sold? 8. A profit-maximizing firm in a competitive market iscurrently producing 100 units of output. It has average revenue of $10, average total cost of $8, and fixed costs of $200.a. What is its profit? d. Is the efficient scale of the firm more than, less than, or exactly 100 units? 9. The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently incurring economic losses.How does the price of fertilizer compare to theaverage total cost, the average variable cost, andthe marginal cost of producing fertilizer? b. Draw two graphs, side by side, illustrating the present situation for the typical firm and for the market. c. Assuming there is no change in either demand or the firms’ cost curves, explain what will happen in the long run to the price of fertilizer, marginal cost, average total cost, the quantity supplied by each firm, and the total quantity supplied to the market. 10. The market for apple pies in the city of Ectenia is competitive and has the following demand schedule: a. Compute each producer’s total cost and average total cost for 1 to 6 pies. b. The price of a pie is now $11. How many pies are sold? How many pies does each producer make? How many producers are there? How much profit does each producer earn? c. Is the situation described in part (b) a long-run equilibrium? Why or why not? d. Suppose that in the long run there is free entry and exit. How much profit does each producer earn in the long-run equilibrium? What is the market price and number of pies each producer makes? How many pies are sold? How many pie producers are operating? 11. Suppose that the U.S. textile industry is competitive and there is no international trade in textiles. In longrun equilibrium, the price per unit of cloth is $30.a. Describe the equilibrium using graphs for the entire market and for an individual producer. Now suppose that textile producers in other countriesare willing to sell large quantities of cloth in theUnited States for only $25 per unit. b. Assuming that U.S. textile producers have large fixed costs, what is the short-run effect of these imports on the quantity produced by an individual producer? What is the short-run effect on profits?Illustrate your answer with a graph. c. What is the long-run effect on the number of U.S. firms in the industry? 12. An industry currently has 100 firms, each of which has fixed costs of $16 and average variable costs as follows:a. Compute a firm’s marginal cost and average totalcost for each quantity from 1 to 6. b. The equilibrium price is currently $10. How muchdoes each firm produce? What is the total quantitysupplied in the market? c. In the long run, firms can enter and exit the market, and all entrants have the same costs as above. As this market makes the transition to its long-run equilibrium, will the price rise or fall? Will the quantity demanded rise or fall? Will the quantity supplied by each firm rise or fall? Explain your answers. d. Graph the long-run supply curve for this market,with specific numbers on the axes as relevant.
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Chapter 15.  Excercises 7-11.  Monopoly.  Principles of Economics. Gregory Mankiw
 
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7. Consider the relationship between monopoly pricing and price elasticity of demand. A) Explain why a monopolist will never produce a quantity at which the demand curve is inelastic. (Hint: If demand is inelastic and the firm raises its price, what happens to total revenue and total costs?) b. Draw a diagram for a monopolist, precisely labeling the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal- revenue curve.) c. On your diagram, show the quantity and price that maximize total revenue. 8. You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customers: a. To maximize profit, what price would you charge for an adult ticket? For a child’s ticket? How much profit do you make? b. The city council passes a law prohibiting you from charging different prices to different customers. What price do you set for a ticket now? How much profit do you make? c. Who is worse off because of the law prohibiting price discrimination? Who is better off? (If you can, quantify the changes in welfare.) d. If the fixed cost of the play were $2,500 rather than $2,000, how would your answers to parts (a), (b), and (c) change? 9. Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist’s demand,marginal revenue, total cost, and marginalcost: a. How many soccer balls does the monopolist produce? At what price are they sold? What is the monopolist’s profit? b. One day, the King of Wiknam decrees that henceforth there will be free trade—either imports or exports— of soccer balls at the world price of $6. The firm is now a price taker in a competitive market. What happens to domestic production of soccer balls? To domestic consumption? Does Wiknam export or import soccer balls? c. In our analysis of international trade in Chapter 9, a country becomes an exporter when the price without trade is below the world price and an importer when the price without trade is above the world price. Does that conclusion hold in your answers to parts (a) and (b)? Explain. d. Suppose that the world price was not $6 but, instead, happened to be exactly the same as the domestic price without trade as determined in part (a).Would allowing trade have changed anything in the Wiknamian economy? Explain. How does the result here compare with the analysis in Chapter 9? 10. Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: a. Find the price and quantity that maximize the company’s profit. b. Find the price and quantity that would maximize social welfare. c. Calculate the deadweight loss from monopoly. d. Suppose, in addition to the costs above, the director of the film has to be paid. The company is considering four options:i. a flat fee of 2,000 Ectenian dollars.ii. 50 percent of the profits.iii. 150 Ectenian dollars per unit sold.iv. 50 percent of the revenue.For each option, calculate the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly?Explain. 11. Many schemes for price discriminating involve some cost. For example, discount coupons take up the time and resources of both the buyer and the seller. This question considers the implications of costly price discrimination. To keep things simple, let’s assumethat our monopolist’s production costs are simply proportional to output so that average total cost and marginal cost are constant and equal to each other.a. Draw the cost, demand, and marginal-revenue curves for the monopolist. Show the price the monopolist would charge without pricediscrimination. b. In your diagram, mark the area equal to the monopolist’s profit and call it X. Mark the area equal to consumer surplus and call it Y. Mark the area equal to the deadweight loss and call it Z. c. Now suppose that the monopolist can perfectly price discriminate. What is the monopolist’s profit?(Give your answer in terms of X, Y, and Z.) d. What is the change in the monopolist’s profit from price discrimination? What is the change in total surplus from price discrimination? Which change is larger? Explain. (Give your answer in terms of X, Y, and Z.)
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Measuring a Nation's Income
 
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Video lecture
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Chapter 23 Gross Domestic Product (GDP)
 
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Using the slides from Mankiw's "Principles of Economics" textbook
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Think Big! Solutions for a Sustainable Economy
 
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Imagine if the world’s largest investors and companies invested in solutions that protect the environment AND preserve their bottom lines…
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Chapter 16  Exercises 1- 5. Monopolistic Competition. Gregory Mankiw. Principles of Economics.
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation 1. Among monopoly, oligopoly, monopolistic competition, and perfect competition, how would you classify the markets for each of the following drinks? 2. Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive,and explain your answers. 3. For each of the following characteristics, say whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. 4. For each of the following characteristics, say whether it describes a monopoly firm, a monopolistically competitive firm, both, or neither. 5. You are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is profit maximizing, is the firm in a long-run equilibrium? If not, what will happen to restore long-run equilibrium?
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Chapter 13. The Costs of Production. Gregory Mankiw. Exercises 6-10
 
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Chapter 13. The Costs of Production. Gregory Mankiw. Principles of Economics. 6-10 exercises. 7th edition 6. Consider the following cost information for a pizzeria: b. Construct a table in which you calculate the marginal cost per dozen pizzas using the information on total cost. Also, calculate the marginal cost per dozen pizzas using the information on variable cost. What is the relationship between these sets of numbers? Comment. 7. Your cousin Vinnie owns a painting company with fixed costs of $200 and the following schedule for variable costs: Calculate average fixed cost, average variable cost, and average total cost for each quantity. What is the efficient scale of the painting company? 8. The city government is considering two tax proposals: a. Which of the following curves—average fixed cost, average variable cost, average total cost, and marginal cost—would shift as a result of the lump-sum tax? Why? Show this in in a graph. Label the graph as precisely as possible. b. Which of these same four curves would shift as a result of the per-burger tax? Why? Show this in a new graph. Label the graph as precisely as possible. 9. Jane’s Juice Bar has the following cost schedules: a. Calculate average variable cost, average total cost, and marginal cost for each quantity. b. Graph all three curves. What is the relationship between the marginal-cost curve and the average total-cost curve? Between the marginal-cost curve and the average-variable-cost curve? Explain. 10. Consider the following table of long-run total costs for three different firms: Does each of these firms experience economies of scale or diseconomies of scale?
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Chapter 17.  Exercises 6-9. Oligopoly. Principles of Economics. G. Mankiw
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation Chapter 17 Exercises 6-9. Oligopoly. Principles of Economics. G. Mankiw. 7th Edition 6. You and a classmate are assigned a project on which you will receive one combined grade. You each want to receive a good grade, but you also want to avoid hard work. In particular, here is the situation: If both of you work hard, you both get an A, which gives each of you 40 units of happiness. If only one of you works hard, you both get a B, which gives each of you 30 units of happiness. If neither of you works hard, you both get a D, which gives each of you 10 units of happiness. Working hard costs 25 units of happiness. a. Fill in the payoffs in the following decision box b. What is the likely outcome? Explain your answer c. If you get this classmate as your partner on a series of projects throughout the year, rather than only once, how might that change the outcome you predicted in part (b)? d. Another classmate cares more about good grades: She gets 50 units of happiness for a B, and 80 units of happiness for an A. If this classmate were your partner (but your preferences were unchanged), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would she also want you as a partner? d. Another classmate cares more about good grades: She gets 50 units of happiness for a B, and 80 units of happiness for an A. If this classmate were your partner (but your preferences were unchanged), how would your answers to parts (a) and (b) change? Which of the two classmates would you prefer as a partner? Would she also want you as a partner? 7. A case study in the chapter describes a phone conversation between the presidents of American Airlines and Braniff Airways. Let’s analyze the game between the two companies. Suppose that each company can charge either a high price for tickets or a low price. If one company charges $300, it earns low profit if the other company also charges $300 and high profit if the other company charges $600. On the other hand, if the company charges $600, it earns very low profit if the other company charges $300 and medium profit if the other company also charges $600. b. What is the Nash equilibrium in this game? Explain. c. Is there an outcome that would be better than the Nash equilibrium for both airlines? How could it be achieved? Who would lose if it were achieved? 8. Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug, and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of X dollars. a. Draw a 2 × 2 payoff matrix describing the decisions the athletes face b. For what X is taking the drug the Nash equilibrium? c. Does making the drug safer (that is, lowering X) make the athletes better or worse off? Explain. 9. Little Kona is a small coffee company that is considering entering a market dominated by Big Brew. Each company’s profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Does either player in this game have a dominant strategy? b. Does your answer to part (a) help you figure out what the other player should do? What is the Nash equilibrium? Is there only one? c. Big Brew threatens Little Kona by saying, “If you enter, we’re going to set a low price, so you had better stay out.” Do you think Little Kona should believe the threat? Why or why not? d. If the two firms could collude and agree on how to split the total profits, what outcome would they pick?
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Chapter 15. Monopoly. Gregory Mankiw. Principles of Economics. 7th edition
 
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Chapter 15. Monopoly. Gregory Mankiw. Principles of Economics. 7th edition Introduction Why Monopolies Arise Monopoly Resources Government-Created Monopolies Natural Monopolies How Monopolies Make Production and Pricing Decisions-Monopoly Vs Competition How Monopolies Make Production and Pricing Decisions-Monopoly Vs Competition How Monopolies Make Production and Pricing Decisions-A Monopoly’s Revenue How Monopolies Make Production and Pricing Decisions - Profit Maximization How Monopolies Make Production and Pricing Decisions – A Monopoly’s profit The Welfare Cost of Monopolies The Welfare Cost of Monopolies-The Deadweight loss. The Welfare Cost of Monopolies-The Monopoly’s Profit: A Social Cost? Price Discrimination Price Discrimination-A Parable about pricing. Price Discrimination-The Moral of the Story Price Discrimination-The analytics of Price Discrimination Price Discrimination-Examples of Price Discrimination. Public Policy towards Monopolies Public Policy towards Monopolies. Increasing Competition with Antitrust Laws. Public Policy towards Monopolies. Regulation Public Policy towards Monopolies. Public Ownership. Public Policy towards Monopolies. Doing nothing Conclusion: The Prevalence of Monopolies
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MindTap for Economics - Mankiw's Principles of Economics
 
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Students using Mankiw's Principles of Economics text with MindTap talk about their favorite features, useful tips, and how they'd recommend using MindTap to their friends.
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Chapter 6  - Supply, Demand and Government Policies
 
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Economics, price ceiling, price floor, tax, Mankiw
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Micro Unit 1 Summary- Basic Economic Concepts
 
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The Micro Unit 1 Summary video is designed to help you understand economics and goes hand-in-hand with my Ultimate Review Packet. In this video I cover the basics: scarcity, opportunity cost, the economic systems, the production possibilities curve, and comparative advatage. I also show you the quick and dirty (22:22). Don't worry, it's school appropriate. Thanks for watching and please subscribe. The Ultimate Review Packet https://www.youtube.com/watch?v=SxBL54a3-QQ Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
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N. Gregory Mankiw - Principles of Economics (Chapters + Exercises)
 
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Solution to the first eight exercicses of 10 principles of economics. 1. Describe some of the tradeoffs faced by the following: a. A family deciding a whether to buy . These are the Videos from the Economics Course-Channel with Chapters + Exercises from N. Gregory Mankiw (Principles of Economics). Solution to the exercises of Chapter 1. 10 Principles of Economics. Gregory Mankiw. 9. Your roommate is better cook than you are, but you can clean more . 10 Principles of Economics. Summary of Principle of Economics. Gregory Mankiw. 1. People face tradeoffs. 2. The cost of something is what you give up to get it. 3. Rational people think at .
Views: 25 Marcella Morton
Chapter 10. Externalities. Principles of Economics. Gregory Mankiw.
 
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Chapter 10. Externalities. Principles of Economics. Gregory Mankiw. Examples of externalities. Welfare economics: A recap. Negative externalities in production. Pollution and the Social Optimum. Positive Externalities in Production. Technology Spillovers and the Social Optimum. Externalities in consumption Private Solutions to Externalities-The types of private solutions. The Coase theorem Why private solutions do not always work. Public policies toward externalities-Regulation. Pigovian taxes and subsidies. Tradable Pollution Permits The equivalence of Pigovian Taxes and Pollution Permits Objections to the economics analysis od pollution
Views: 7598 Economics Course
Macro and Micro Unit 1- Practice Questions #1
 
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This is a 13 question practice quiz for Macroeconomics and Microeconomics Unit 1. The questions are designed for AP and college introductory economics. Do your best and feel free to click on the "learn more" link next to each question to go back and rewatch a part of the Unit Summary video. Please subscribe The Ultimate Review Packet- http://www.acdcecon.com/#!review-packet/czji Unit 1- Practice Questions #2 https://www.youtube.com/watch?v=_3IngsS9NVE Macroeconomics Videos https://www.youtube.com/watch?v=XnFv3d8qllI Microeconomics Videos https://www.youtube.com/watch?v=swnoF533C_c Check out my Review Apps for Macro and Micro https://itunes.apple.com/us/app/ap-macroeconomics-review/id634270093?mt=8 Watch Econmovies https://www.youtube.com/playlist?list=PL1oDmcs0xTD9Aig5cP8_R1gzq-mQHgcAH Follow me on Twitter https://twitter.com/acdcleadership
Views: 134501 Jacob Clifford
Chapter 14. Firms in Competitive Markets. Gregory Mankiw. Principles of Economics.
 
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You can support us: https://streamlabs.com/economicscourse Chapter 14. Firms in Competitive Markets. Gregory Mankiw. Principles of Economics. 7th edition What is a Competitive Market?-The meaning of competition What is a Competitive Market?-The Revenue of a competitive firm Profit Maximization and the CompetitiveFirm’s Supply Curve - A Simple Example of Profit Maximization Profit Maximization and the CompetitiveFirm’s Supply Curve- The Marginal-Cost Curve and the Firm’s Supply Decision Profit Maximization and the CompetitiveFirm’s Supply Curve- The Marginal-Cost Curve and the Firm’s Supply Decision Profit Maximization and the CompetitiveFirm’s Supply Curve- The Firm’s Short-Run Decision to Shut Down Profit Maximization and the CompetitiveFirm’s Supply Curve- The Firm’s Short-Run Decision to Shut Down Profit Maximization and the CompetitiveFirm’s Supply Curve- Spilt Milk and Other Sunk Costs Profit Maximization and the CompetitiveFirm’s Supply Curve- The Firm’s Long-Run Decision to Exit or Enter a Market Profit Maximization and the CompetitiveFirm’s Supply Curve- Measuring Profit in Our Graph for the Competitive Firm The Supply Curve in a Competitive Market The Supply Curve in a Competitive Market-The Short Run: Market Supply with a Fixed Number of Firms The Supply Curve in a Competitive Market-The Long Run: Market Supply with Entry and Exit The Supply Curve in a Competitive Market-Why Do Competitive Firms Stay in Business If They Make Zero Profit? The Supply Curve in a Competitive Market-A Shift in Demand in the Short Run and Long Run The Supply Curve in a Competitive Market-A Shift in Demand in the Short Run and Long Run The Supply Curve in a Competitive Market-Why the Long-Run Supply Curve Might Slope Upward
Views: 10246 Economics Course
Practice Test Bank for Principles Of Economics by Mankiw 6th Edition
 
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Contact us to acquire the Test Bank and/or Solution Manual; Email: atfalo2(at)yahoo(dot)com Skype: atfalo2
Econ - Corner Solutions
 
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Describing corner solutions
Views: 39541 EconProfessorKate
Supply and Demand: Crash Course Economics #4
 
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In which Adriene Hill and Jacob Clifford teach you about one of the fundamental economic ideas, supply and demand. What is supply and demand? Well, you’ll have to watch the video to really understand it, but it’s kind of important for everything economically. Supply and demand sets prices, and indicates to manufacturers how much to produce. Also, it has a lot to do with strawberries. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Jan Schmid, Simun Niclasen, Robert Kunz, Daniel Baulig, Jason A Saslow, Eric Kitchen, Christian, Beatrice Jin, Anna-Ester Volozh, Eric Knight, Elliot Beter, Jeffrey Thompson, Ian Dundore, Stephen Lawless, Today I Found Out, James Craver, Jessica Wode, Sandra Aft, Jacob Ash, SR Foxley, Christy Huddleston, Steve Marshall, Chris Peters Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 1681720 CrashCourse
Welcome to Economics - Chapter 1, Mankiw 7e
 
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In the 7th edition of Greg Mankiw's Principles text he introduces students to the chapter they are about to study. This added context is just one feature of the best selling text and most advanced digital learning environment in all of undergraduate economics. For more information, please visit our website at http://bit.ly/1gnKXeh
Views: 25362 Cengage Learning
Intro to Economics: Crash Course Econ #1
 
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In which Jacob Clifford and Adriene Hill launch a brand new Crash Course on Economics! So, what is economics? Good question. It's not necessarily about money, or stock markets, or trade. It's about people and choices. What, you may ask, does that mean. We'll show you. Let's get started! Crash Course is now on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark Brouwer, Jan Schmid, Anna-Ester Volozh, Robert Kunz, Jason A Saslow, Christian Ludvigsen, Chris Peters, Brad Wardell, Beatrice Jin, Roger C. Rocha, Eric Knight, Jessica Simmons, Jeffrey Thompson, Elliot Beter, Today I Found Out, James Craver, Ian Dundore, Jessica Wode, SR Foxley, Sandra Aft, Jacob Ash, Steve Marshall TO: My Students FROM: Mrs. Culp Culpzilla's students are amazing! You guys rock! TO: Everyone FROM: Pankaj DFTBA and keep being the exception like the Mongols. Thank you so much to all of our awesome supporters for their contributions to help make Crash Course possible and freely available for everyone forever: Summer Naugle, Minnow, Ilkka Hemmilä, Kaitlyn Celeste, Lee Toran, Sarty, Damian Shaw, Nathaniel "The Skipper" Cruz Chavez, Maura Doyle, Chris, Sander Mutsaers Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 3661799 CrashCourse
Chapter 6. Supply, Demand, and Government Policies.
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation Chapter 6. Supply, Demand, and Government Policies. Gregory Mankiw. Principles of Economics . Price ceiling. Price Floor. How Taxes on Buyers Affect Market Outcomes. How Taxes on Sellers Affect Market Outcomes. Elasticity and Tax Incidence
Views: 18212 Economics Course
Chapter 7. Consumers, producers, and the efficiency of Markets.
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://streamlabs.com/economicscourse Welfare economics. Consumer Surplus. Willingness to pay. Using the demand curve to measure consumer surplus. How a lower price raises consumer surplus. Producer surplus. Cost and the willingness to sell. Using the supply curve to measure producer surplus. How a higher price raises producer surplus. Market efficiency. The benevolent Social Planner.
Views: 20302 Economics Course
Practice Test Bank for Principles of Economics by Boyes 8th Edition
 
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Practice Test Bank for Principles Of Economics by Mankiw 7th Edition
 
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Contact us to acquire the Test Bank and/or Solution Manual; Email: atfalo2(at)yahoo(dot)com Skype: atfalo2
How to Solve Elasticity Problems in Economics
 
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This video goes over the equation and some examples of solving price elasticity of demand problems in economics. More information is available at http://www.freeeconhelp.com/2011/05/how-to-solve-elasticities-problems-in.html or http://www.freeeconhelp.com/2011/08/using-midpoint-formula-to-solve.html Essentially an elasticity measure looks at the responsiveness of one variable to changes in the other. In this case we are focused on the two economic variables of quantity and price. The easiest way to think about elasticity is to imagine a rubber band. The force on the rubber band causes it to stretch in a similar manner that a price change causes people to buy more or less of a product. The measurement of the relationship between this cause and effect in practice is called elasticity. More information is available at http://www.freeeconhelp.com/2011/05/how-to-solve-elasticities-problems-in.html or http://www.freeeconhelp.com/2011/08/using-midpoint-formula-to-solve.html
Views: 366157 Free Econ Help
Chapter 21. The Theory of Consumer Choice. Gregory Mankiw.
 
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Chapter 21. The Theory of Consumer Choice. Gregory Mankiw. Principles of Economics. 7th edition. The Budget Constraint: What the Consumer Can Afford. Preferences: What the Consumer Wants-Representing Preferences with Indifference Curves Preferences: What the Consumer Wants-Representing Preferences with Indifference Curves Preferences: What the Consumer Wants-Four Properties of Indifference Curves Preferences: What the Consumer Wants-Four Properties of Indifference Curves Preferences: What the Consumer Wants-Two Extreme Examples of Indifference Curves Preferences: What the Consumer Wants-Two Extreme Examples of Indifference Curves Optimization: What the Consumer Chooses - 21-3a The Consumer’s Optimal Choices Optimization: What the Consumer Chooses - 21-3a The Consumer’s Optimal Choices FYI-Utility An Alternative Way toDescribe Preferences and Optimization FYI-Utility An Alternative Way toDescribe Preferences and Optimization Optimization: What the Consumer Chooses - How Changes in Income Affect the Consumer’s Choices Optimization: What the Consumer Chooses - How Changes in Prices Affect the Consumer’s Choices Optimization: What the Consumer Chooses – Income and Substitution Effects. Income and Substitution Effects When the Priceof Pepsi Falls Optimization: What the Consumer Chooses – Income and Substitution Effects. Optimization: What the Consumer Chooses – Deriving the Demand Curve Three Applications -Do All Demand Curves Slope Downward? Case study-The search for Giffen Goods Three Applications -How Do Wages Affect Labor Supply? Case Study - Income Effects on Labor Supply: Historical Trends, Lottery Winners, and the Carnegie Conjecture Three Applications -How Do Interest Rates Affect Household Saving? Three Applications -How Do Interest Rates Affect Household Saving? Conclusion: Do People Really ThinkThis Way?
Views: 5059 Economics Course
Taxes: Crash Course Economics #31
 
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We've been talking about the unavoidables recently. Last time, we covered Death. This time, it's taxes. So, what are taxes? Why do we pay taxes? What is all that tax money used for? This week, Adriene is going to cover all that and more. We'll talk about types of taxes, progressive and regressive taxes, tax brackets, and we'll even get into a few historical scenarios where bad tax policy led to revolutions. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 598918 CrashCourse
Review Final Exam (Spring 2016)
 
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00:00:00 Information on the final's Scantron format 00:01:10 Question #1 00:08:24 Question #2 00:11:15 Question #3 00:16:18 Question #4 00:17:21 Question #5 00:21:39 Question #6 00:22:31 Question #7 00:25:19 Question #8 00:28:26 Question #9 00:34:18 Question #10 00:38:25 Question #11 00:40:27 Question #12 00:45:12 Question #13 00:48:27 Question #14 00:56:48 Question #15 00:59:12 Question #16 01:01:13 Question #17 01:02:40 Question #18 01:04:53 Question #19 01:11:17 Question #20 01:13:01 Question #21 01:15:00 Question #22 01:16:00 Question #23 01:17:50 Question #24 01:19:15 Question #25 01:21:13 Question #26 01:23:50 Question #27 01:28:28 Question #28 01:34:04 Question #29 01:35:34 Question #30 01:37:07 Question #31 01:42:47 Question #32: Solution is in Ted Joyce's videos, Chap 17#4 01:46:50 Question #33 01:47:36 Question #34 01:49:12 Question #35 01:50:49 Question #36 01:55:00 Question #37 01:58:12 Question #38
Chapter 3. Interdependence and the gains from trade. Gregory Mankiw
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://streamlabs.com/economicscourse Chapter 3.Interdependence and the gains from trade. Gregory Mankiw. Principles of economics. Interdependence between countries. Production Possibilities. Specialization and Trade Absolute Advantage Comparative advantage
Views: 10636 Economics Course
Chapter 18. The Markets for the Factors of Production. Gregory Mankiw
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation Chapter 18. The Markets for the Factors of Production. Gregory Mankiw. Principles of Economics. 7th edition Introduction The Demand for labor The Demand for labor-The competitive Profit-Maximizing Firm The Demand for labor-The Production Function and the Marginal Product of Labor The Demand for labor-The Production Function and the Marginal Product of Labor The Demand for labor-The Value of the Marginal Product and the Demand for Labor The Demand for labor- What Causes the Labor-Demand Curve to Shift? The Supply of Labor - The Trade-off between Work and Leisure The Supply of Labor - What Causes the Labor-Supply Curve to Shift? Equilibrium in the labor market Equilibrium in the labor market - Shifts in Labor Supply Equilibrium in the labor market - Shifts in Labor Demand The Other Factors of Production: Land and Capital The Other Factors of Production: Land and Capital - Equilibrium in the Markets for Land and Capital The Other Factors of Production: Land and Capital - Equilibrium in the Markets for Land and Capital The Other Factors of Production: Land and Capital - Linkages among the Factors of Production The Other Factors of Production: Land and Capital - Linkages among the Factors of Production Conclusion
Views: 2428 Economics Course
Marginal costing (P/V ratio, BEP, Required Profit, Required Sales,...) :-by kauserwise
 
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▓▓▓▓░░░░───CONTRIBUTION ───░░░▓▓▓▓ If you like this video and wish to support this kauserwise channel, please contribute via, * Paytm a/c : 7401428918 * Paypal a/c : www.paypal.me/kauserwisetutorial [Every contribution is helpful] Thanks & All the Best!!! ─────────────────────────── Marginal costing statement in English(P/V ratio, BEP, Required Profit, Required Sales,...) ( Break even analysis, Break even point, P V ration) To watch more tutorials pls visit: www.youtube.com/c/kauserwise * Financial Accounts * Corporate accounts * Cost and Management accounts * Operations Research Playlists: For Financial accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnojfVAucCUHGmcAay_1ov46 For Cost and Management accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnpgUjlVR-znIRMFVF0A_aaA For Corporate accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnorJc6lonRWP4b39sZgUEhx For Operations Research - https://www.youtube.com/playlist?list=PLabr9RWfBcnoLyXr4Y7MzmHSu3bDjLvhu
Views: 492636 Kauser Wise
Productivity and Growth: Crash Course Economics #6
 
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Why are some countries rich? Why are some countries poor? In the end it comes down to Productivity. This week on Crash Course Econ, Adriene and Jacob investigate just why some economies are more productive than others, and what happens when an economy is mor productive. We'll look at how things like per capita GDP translate to the lifestyle of normal people. And, there's a mystery. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Jan Schmid, Simun Niclasen, Robert Kunz, Daniel Baulig, Jason A Saslow, Eric Kitchen, Christian, Beatrice Jin, Anna-Ester Volozh, Eric Knight, Elliot Beter, Jeffrey Thompson, Ian Dundore, Stephen Lawless, Today I Found Out, James Craver, Jessica Wode, Sandra Aft, Jacob Ash, SR Foxley, Christy Huddleston, Steve Marshall, Chris Peters Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 912218 CrashCourse
Exercises 8-14. Chapter 5. Elasticity and its application.
 
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YOU BELEIVE IN THIS PROJECT! Donate it and you'll support us. https://diegocruz18.wixsite.com/onlineco/donation Exercise 8-14.Chapter 5.Elasticity and its application. Gregory Mankiw. Principles of Economics . 8. Consider public policy aimed at smoking.a. Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20 percent, by how much should it increase the price? b. If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now? c. Studies also find that teenagers have a higher price elasticity than do adults. Why might this be true? 9. Would you expect the price elasticity of demand to be larger in the market for all ice cream or the market for all ice cream or the market for vanilla ice cream? Would you expect the price elasticity of supply to be larger in the market for all ice cream or the market for vanilla ice cream? Be sure to explain your answers 10. Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand. Suppose that technological advance doubles the supply of both products (that is, the quantity supplied at each price is twice what it was).A. What happens to the equilibrium price and quantity in each market? b. Which product experiences a larger change in price?c. Which product experiences a larger change in quantity?D. What happens to total consumer spending on each product? 11. Beachfront resorts have an inelastic supply, and automobiles have an elastic supply. Suppose that a rise in population doubles the demand for both products (that is, the quantity demanded at each price is twice what it was).A. What happens to the equilibrium price and quantity in each market? b. Which product experiences a larger change in price?c. Which product experiences a larger change in quantity?d. What happens to total consumer spending on each product? 12. Several years ago, flooding along the Missouri and Mississsippi rivers destroyed thousands of acres to wheat.a. Farmers whose crops, were destroyed by the floods were much worse off, but farmers whose crops were not destroyed benefited from the floods. Why? b. What information would you need about the market for wheat in order to assess whether farmers as a group were hurt or helped by the flood. 13. Explain why the following might be true: A drought around the world raises the total revenue that farmers receive from the sale of grain, but a drought only in Kansas reduces the total revenue that Kansas farmers. 14. Because better weather makes farmland more productive, farmland in regions with good weather conditions is more expensive than farmland in regions with bad weather conditions. Over time, however, as advances in technology have made all farmland more productive, the price of farmland (adjusted for overall inflation) has fallen. Use the concept of elasticity to explain why productivity and farmland prices are positively related across space but negatively related over time.
Views: 6561 Economics Course
Fiscal Policy and Stimulus: Crash Course Economics #8
 
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In which Jacob and Adriene teach you about the evils of fiscal policy and stimulus. Well, maybe the policies aren't evil, but there is an evil lair involved. In this episode we learn how government use taxes and spending influence the economy. Sometimes the government gives, and sometimes it takes. And the giving and the taking can have a profound effect on how economies behave. Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark , Elliot Beter, Moritz Schmidt, Jeffrey Thompson, Ian Dundore, Jacob Ash, Jessica Wode, Today I Found Out, Christy Huddleston, James Craver, Chris Peters, SR Foxley, Steve Marshall, Simun Niclasen, Eric Kitchen, Robert Kunz, Avi Yashchin, Jason A Saslow, Jan Schmid, Daniel Baulig, Christian , Anna-Ester Volozh Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 928803 CrashCourse
MANAGERIAL ECONOMICS MBA,ECONOMICS HONOURS, HOW TO STUDY,SHORTCUTS,COMPLETE SOLUTION
 
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MANAGERIAL ECONOMICS MBA,ECONOMICS HONOURS, HOW TO STUDY,SHORTCUTS,COMPLETE SOLUTION VISIT OUR WEBSITE https://www.souravsirclasses.com/ FOR COMPLETE LECTURES / STUDY MATERIALS /NOTES /GUIDENCE / PAST YEAR SOLVED +SAMPLE PAPAERS /TRICKS /MCQ / SHORT CUT/ VIDEO LECTURES /LIVE + ONLINE CLASSES GIVE US A CALL / WHATSAPP AT 9836793076 Also find us at…. BLOGSPOT http://souravdas3366.blogspot.com/ SLIDES ON COURSES https://www.slideshare.net/Souravdas31 TWITTER https://twitter.com/souravdas3366 FACEBOOK https://www.facebook.com/Sourav-Sirs-... LINKED IN https://www.linkedin.com/in/sourav-da... GOOGLE PLUS https://plus.google.com/+souravdassou... Managerial economics is the "application of the economic concepts and economic analysis to the problems of formulating rational managerial decisions".[1] It is sometimes referred to as business economics and is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice.[2] It draws heavily from quantitative techniques such as regression analysis, correlation and calculus.[3] If there is a unifying theme that runs through most of managerial economics, it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity, for example through the use of operations research, mathematical programming, game theory for strategic decisions,[4] and other computational methods.[5] Almost any business decision can be analyzed with managerial economics techniques, but it is most commonly applied to: Risk analysis – various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk.[6] Production analysis – microeconomic techniques are used to analyze production efficiency, optimum factor allocation, costs, economies of scale and to estimate the firm's cost function. Pricing analysis – microeconomic techniques are used to analyze various pricing decisions including transfer pricing, joint product pricing, price discrimination, price elasticity estimations, and choosing the optimum pricing method. Capital budgeting – Investment theory is used to examine a firm's capital purchasing decisions.[7] At universities, the subject is taught primarily to advanced undergraduates and graduate business students. It is approached as an integration subject. That is, it integrates many concepts from a wide variety of prerequisite courses. In many countries it is possible to read for a degree in Business Economics which often covers managerial economics, financial economics, game theory, business forecasting and industrial economics. Scope Managerial economics to a certain degree is prescriptive in nature as it suggests course of action to a managerial problem. Problems can be related to various departments in a firm like production, accounts, sales, etc. Demand decision. Production decision. Theory of exchange or price theory. All human economic activity. Demand Decision Demand is the willingness of potential customers to buy a commodity. It defines the market size for a commodity, and at a disaggregated level the composition of the customer base. Analysis of demand is important for a firm as its revenue, profits, and income of its employees depend on it. Managerial decision areas include: assessment of investible funds selecting business area choice of product determining optimum output sales promotion. Managerial economics generally refers to the integration of economic theory with business prac­tice. Economics provides tools managerial economics applies these tools to the management of busi­ness. In simple terms, managerial economics means the application of economic theory to the problem of management. Managerial economics may be viewed as economics applied to problem solving at the level of the firm. It enables the business executive to assume and analyse things. Every firm tries to get satisfactory profit even though economics emphasises maximizing of profit. Hence, it becomes neces­sary to redesign economic ideas to the practical world. This function is being done by managerial economics. Managerial economists have defined managerial economics in a variety of ways: According to E.F. Brigham and J. L. Pappar, Managerial Economics is “the application of economic theory and methodology to business administration practice.” To Christopher Savage and John R. Small: “Managerial Economics is concerned with business efficiency”. Milton H. Spencer and Lonis Siegelman define Managerial Economics as “the integration of eco­nomic theory with business practice for the purpose of facilitating decision making and forward plan­ning by management.” In the words of Me Nair and Meriam, “Managerial Economics consists of the use of economic modes of thought to analyse business situations.”
Views: 3243 SOURAV SIR'S CLASSES
Practice Test Bank for Principles of Economics by Rittenberg v  2 1
 
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Contact us to acquire the Test Bank and/or Solution Manual; Email: atfalo2(at)yahoo(dot)com Skype: atfalo2
The Keynes Solution: The Path to Global Economic Prosperity Via a Serious Monetary Theory
 
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Paul Davidson is the editor and co-founder of Journal of Post Keynesian Economics. ➡ Subscribe: http://bit.ly/UCHICAGOytSubscribe About #UChicago: A destination for inquiry, research, and education, the University of Chicago empowers scholars to challenge conventional thinking. Our diverse community of creative thinkers celebrates ideas, and is celebrated for them. #UChicago on the Web: Home: http://bit.ly/UCHICAGO-home News: http://bit.ly/UCHICAGO-news Facebook: http://bit.ly/UCHICAGO-FB Twitter: http://bit.ly/UCHICAGO-TW Instagram: http://bit.ly/UCHICAGO-IG University of Chicago on YouTube: https://www.youtube.com/uchicago *** ACCESSIBILITY: If you experience any technical difficulties with this video or would like to make an accessibility-related request, please email [email protected]
The Islamic Economic model - a solution to economic problems of today
 
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Bismillahi Rahmani Raheem The Islamic economic system is neither Socialist nor Capitalist, but a "third way" with none of the drawbacks of the other two systems. Some brief examples of Islamic economic principles: • The fundamental economic problem is different from the capitalist model of unlimited wants and limited resources. Islam views the fundamental economic problem to be of fair distribution of resources by removing obstacles which prevent the fair distribution of resources • Interest is strictly forbidden, from banking, state and individual transactions in the Islamic economic model because it circulates wealth away from the people and society and circulates it to the wealthy - the rich grow richer • Certain resources cannot be held in private hands, under Shariah natural assets like oil, gas, water, belong to the people are considered public assets utilised for the public good and cannot be privately owned or sold for profit • Money must be asset backed i.e. by precious metals, gold and silver for example and have real real intrinsic value to prevent inflation • A Tax system (zakat) which taxes wealth and considers a tax on income as oppressive, tax collected is redistributed to provide income for the needy, including the poor, the elderly, orphans, widows, and the disabled The most well--known Islamic scholar who wrote about economics was Ibn Khaldun, who is considered a father of modern economics. Ibn Khaldun wrote on economic and political theory in the introduction, or Muqaddimah (Prolegomena), of his History of the World (Kitab al-Ibar). He discussed what he called asabiyya (social cohesion), which he cited as the cause of some civilizations becoming great and others not. Ibn Khaldun felt that many social forces are cyclic, although there could be sudden sharp turns that break the pattern. His idea about the benefits of the division of labor also relate to asabiyya, the greater the social cohesion, the more complex the successful division may be, the greater the economic growth. He noted that growth and development positively stimulates both supply and demand, and that the forces of supply and demand are what determines the prices of goods. He also noted macroeconomic forces of population growth, human capital development, and technological developments effects on development. In fact, Ibn Khaldun thought that population growth was directly a function of wealth.
Views: 13700 blueskyseven1
Economic Solutions to Environmental Problems
 
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"Market forces are powerful when they're harnessed to pursue environmental goals." An expert on oil and gas policies discusses policy's sphere of influence.
Income and Wealth Inequality: Crash Course Economics #17
 
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Inequality is a big, big subject. There's racial inequality, gender inequality, and lots and lots of other kinds of inequality. This is Econ, so we're going to talk about wealth inequality and income inequality. There's no question that economic inequality is real. But there is disagreement as to whether income inequality is a problem, and what can or should be done about it. *** Crash Course is on Patreon! You can support us directly by signing up at http://www.patreon.com/crashcourse Thanks to the following Patrons for their generous monthly contributions that help keep Crash Course free for everyone forever: Mark, Eric Kitchen, Jessica Wode, Jeffrey Thompson, Steve Marshall, Moritz Schmidt, Robert Kunz, Tim Curwick, Jason A Saslow, SR Foxley, Elliot Beter, Jacob Ash, Christian, Jan Schmid, Jirat, Christy Huddleston, Daniel Baulig, Chris Peters, Anna-Ester Volozh, Ian Dundore, Caleb Weeks -- Want to find Crash Course elsewhere on the internet? Facebook - http://www.facebook.com/YouTubeCrashCourse Twitter - http://www.twitter.com/TheCrashCourse Tumblr - http://thecrashcourse.tumblr.com Support Crash Course on Patreon: http://patreon.com/crashcourse CC Kids: http://www.youtube.com/crashcoursekids
Views: 901795 CrashCourse
Solution Manual for Economics 20th Edition by McConnell
 
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http://testbankcollection.com/ Download Solution Manual for Economics 20th Edition by McConnell pdf Link download full: http://testbankcollection.com/download/solution-manual-for-economics-20th-edition-by-mcconnell/
Views: 88 testbankcollection
Exercises 1-8. 10 principles of economics. Gregory Mankiw
 
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Solution to the first eight exercicses of 10 principles of economics. 1. Describe some of the tradeoffs faced by the following: a. A family deciding a whether to buy a car. b. A member of Congress deciding how much to spent on national parks. c. A company president deciding whether to open a new factory. d. A professor deciding how much to prepare for class 2. 2. You are trying to decide whether to take a vacation. Most of the costs of the vacation (airfare, hotel, forgone, wages) are measured in dollars, but the benefits of the vacation are psychological. How can you compare the benefits to the costs? 3. You were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the true cost of going skiing? Now suppose that you had been planning to spend the day studying at the library. What is the cost of going skiing in this case? Explain 4. You win $100 in a basketball pool. You have a choice between spending the money now or putting it away for a year in a bank account that pays 5% interest. What is the opportunity cost of spending the $100 now? 5. The company that you manage has invested $5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to $3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development? 6. Three managers of the Magic Potion Company are discussing a possible increase in production. Each suggests a way to make this decision. Harry: We should examine whether our company’s productivity-gallons of potion per worker-would rise or fall. Ron: We should examine whether our average cost- cost per worker-would rise or fall. Hermione: We should examine whether the extra revenue from selling the additional potion would be greater or smaller than the extra costs. Who do you think is right ? Why? 7. The Social Security system provides income for people over 65.If a recipient of Social Security decides to work and earn some income, the amount he or she receives in Social Security benefits is typically reduced.a. How does the provision of Social Security affect people’s incentive to save while working? 8. A recent bill reforming the government’s antipoverty programs limited many welfare recipients to only two year benefits.A. How does this change affect the incentive for working? b. How might this change represent a tradeoff between equity and efficiency?
Views: 9091 Economics Course
Intro to Game Theory and the Dominant Strategy Equilibrium
 
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http://economicsdetective.com/ Game theory is the study of human behaviour in strategic settings. It is used to solve some of the harder problems in economics. So what is a game? To have a game, you need at least two players, sometimes called agents, or, if you want to be really crazy, people. And you need payoffs for the players, you need to define the outcomes they can potentially get depending on how the game unfolds. And finally, you need rules for the game. Now, it's not always obvious how people will behave, even with players, payoffs, and rules clearly defined. That's why game theorists have a number of solution concepts for games, including the dominant strategy equilibrium, the Nash equilibrium, the subgame perfect Nash equilibrium, the Bayesian equilibrium, and the weak perfect Bayesian equilibrium. The most basic solution concept is the dominant strategy equilibrium. In a game, each player can have any number of possible strategies. One strategy strictly dominates another strategy if the player is always better off under that strategy no matter what other players do. If one strategy strictly dominates every other possible strategy a player could take, that strategy is a strictly dominant strategy. We have a dominant strategy equilibrium when all players play a strictly dominant strategy. Now let's look at the most famous game in game theory, the Prisoner's Dilemma. There are two prisoners, prisoner 1 and prisoner 2, and they each have a choice. They can testify against the other, or they can keep quiet. If they both keep quiet, they both get off with a light sentence, which I'll represent with a payoff of 2. Prisoner 1's payoff is on the left, prisoner 2's is on the right. If they both testify, they both get a moderate sentence. I'll represent the moderate sentence by a payoff of 0. Right about now, keeping quiet is looking like the best option, but there's more to this game. If one testifies and the other keeps quiet, the one who testified will get off scot free, and the one who kept quiet will get an extremely harsh sentence; they'll throw the book at him. Think about this game for a moment. Keeping quiet looks like a pretty good option if both prisoners could promise not to testify. But these prisoners only care about their own self-interest. So, both prisoners may tell the other they pinky swear not to testify, but they won't keep that promise. If prisoner 2 keeps quiet, prisoner 1 is better off testifying. If prisoner 2 testifies, prisoner 1 is better off testifying. Testifying is a dominant strategy for both players, so both testifying is the dominant strategy equilibrium. The prisoner's dilemma comes up in all sorts of situations. For instance, instead of prisoners our players could be, say, oil companies. If both set a high price they can sell for a high price, but each one has an incentive to undercut, in which case he will capture the entire market. The equilibrium outcome is for each company to charge a low price. The prisoner's dilemma isn't the only game with a dominant strategy equilibrium. Here's a more complicated one. Can you tell which strategy is dominant? It's A for player 1, and E for player 2. So the dominant strategy equilibrium is A, E.
Views: 479638 The Economics Detective

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