Premium Essay

Microeconomics Homework

In: Other Topics

Submitted By cupidn11
Words 2394
Pages 10
Nikki Roche

Principles of Microeconomics: First Homework

Subject 1: Introduction

1.Keynes’s Fallacy of Composition states that although economic policies may be good for one system, they could be harmful when applied to a different system. An example would be an individual saving money. It would be beneficial to the individual, because he wouldn’t spend all of their income, however it would be bad for the economy since there wouldn’t be money being re-infused. Macroeconomics looks at the behavior of economic aggregates on a national scale (aggregate, GDP). Microeconomics looks at the behavior of individual decision-making, and examines the economic activities of individual consumers and producers (households and business firms).

Subject 2: Demand, Supply, and Market Equilibrium

3. The Law of Demand states that there is an inverse relationship between price and quantity demanded. The main objective for consumer demand is to maximize utility, which is satisfying power. Therefore the consumer would like to pay the lowest price.

4. There are five determinants for consumer demand: taste, income, and price, prices of substitutes and complements, and future expectations. If you have a taste for a certain product, you are more likely to buy more. If you have a low income, you may not be able to buy an expensive product. Also, if a product of a substitute is cheaper, consumers may switch to a new product. Finally, future expectations may influence a consumers demand for a certain product because if it will be cheaper in the future, they may hold off on buying it until the price goes down.

5. Substitutes are goods that can serve as alternatives for one another. When the price of one increases; demand for the other increases. An example would be Pizza Hut and Dominos Pizza. Complements are goods that go together, a decrease in the price of one would result...

Similar Documents

Premium Essay

Good

...from 6-7 p.m. in WTHR 200 and Monday, March 26 from 6-7 p.m. in WTHR 200 Administrative Assistant: Bree Miller KRAN 443 496-7964 (9 a.m. – 1 p.m. M-Th) bree2@purdue.edu Course Web Site(s): blackboard.purdue.edu (for accessing grades and course information or postings) www.pearsonmylabandmastering.com (for e-text, online homework, study guide) Course Overview: Econ 251 is intended to introduce you to microeconomic theory and its application in everyday life. The course will explain how individual consumers and producers together determine the prices and quantities of goods available in the marketplace. We will investigate the underlying incentives of consumers to buy goods and of firms to produce products that satisfy consumer demand. In addition, we'll look at how government can help or hinder market efficiency. The textbook for the course is Microeconomics for Economics 251, published by Pearson Custom Publishing (ISBN: 1256128546). The publisher has created an online resource site for this class, Pearson MyLab, which you will use for completing several homework assignments. An e-text is available with the online site as well. All homework will be submitted and graded online. Estimated Course Schedule: Date Topic January 10 & 12 Chapter 1: What Is Economics? Chapter 2: The Economic Problem January 17 & 19 Chapter 3: Demand and Supply January 24 & 26...

Words: 1729 - Pages: 7

Free Essay

The Dropout Crisis

...this syllabus, please go to the Introductions Forum of the Discussion Board and reply to the first post there with a brief introduction of what you hope to gain from the course and your prior exposure to economics. While we will make extensive use of the text Principles of Economics for this course, also we will visit and discuss online sources that apply or expand upon the microeconomic methods discussed in the text. If you have technical questions, please feel free to contact Technical Support. You can also contact me through the email feature in the class. I hope you have a great learning experience! Overview This is an introductory course in the principles of macroeconomics. I am looking forward to introducing you to some of the models economists use to understand and predict how national economies react to the decisions made by consumers, producers, and policy makers. This course focuses on large economic systems, such as the U.S. economy. Macroeconomics studies such national economies and the determination of national income. Graded materials consist of interactive weekly modules, weekly homework, a midterm, and a final examination. updated 14-09-27 19:25 Syllabus XL2 What's New This quarter, UCLA Extension is making...

Words: 4056 - Pages: 17

Premium Essay

Final

...Costs of Going to School Melissa Olson Rasmussen College Author Note: This paper is being submitted for Professor Sherwood’s G204 Microeconomics course. Costs of Going to School I had a good idea of what I was getting into when I signed up for classes at Rasmussen. I knew that I wanted to pursue a career in accounting, and in order to do that, I would need to complete schooling and get some sort of degree. When deciding the path I wanted to take, Rasmussen was one of my options. The thing that I liked most about Rasmussen was the flexibility of their online courses. Most people who took them still worked full time jobs and some even had families of their own to take care of. I knew that since I still needed to work full time in order to make student loan payments, that Rasmussen was my best bet. I signed up for courses, and began to look at the accelerated schedules. The reason that I chose this path was because I knew that I could handle a big workload and could take on up to six courses per quarter. The graduation date was also much sooner than if I were to take the regular scheduled courses. I knew there would be late nights, busy weeks, and a hectic finals week, but I also knew that I could handle it. Some of the specific opportunity costs that I have faced since starting my school career are less ‘free’ nights. I try to spread my schoolwork out evenly, so I don’t get too overwhelmed when it comes closer to my assignment due dates. There have been nights......

Words: 526 - Pages: 3

Premium Essay

Revenue Management

...Decision Sciences HOMEWORK: REVENUE MANAGEMENT BY A RENTAL CAR COMPANY:1 You are a consultant hired by a major national rental car company that is seeking to improve its pricing strategy. In particular, it is considering adopting a strategy of customized pricing tailored to the underlying micro-markets that it might face. In the rental car business (as in the hotel and resort business), price customization is known as revenue management. As a test case, your client is considering a pricing experiment at Lambert Airport in St. Louis, Missouri, a location at which your client has dominant market share and thus can safely ignore possible reactions of competitors. Careful market research has revealed that the St. Louis market is composed of two micromarkets. The first comprises business travelers; the second comprises vacation travelers. The demand curves for these two micro-markets are given below: Micro-market Business travelers Vacation travelers Demand curve equation Q1= 3,600 – 20P Q2= 3,000 – 30P In the table above, P is the daily rental rate, while Q1 and Q2 are the numbers of vehicles rented per day by business travelers and vacation travelers, respectively. Like airlines, the rental car business is one in which the marginal cost of serving an extra customer is nearly zero. For this reason, throughout this exercise, we will assume that your client’s MC = 0. (Of course, your client has fixed costs, but as an astute practitioner of microeconomics, you know that these...

Words: 984 - Pages: 4

Premium Essay

Microecon

...ECO 165 Microeconomics Homework Seven 1. Suppose that a firms production function is given by (Q = quantity and L = hours of labor). Suppose throughout that the labor market is competitive, so that marginal resource cost equals the market wage. a. (4 points) Now suppose this firm is in a perfectly competitive market and that the market price is $2. What is the marginal revenue product of the 2nd hour of labor? Briefly explain your answer. b. (6 points) If the market wage is $10, how many hours of labor should this firm hire to maximize profit? Briefly explain your answer. c. (6 points) Now suppose that the firm has market power and that the demand curve they face is given below. How much labor should this firm hire to maximize profit? Assume again that the market wage is $10 and briefly explain your answer. d. (4 points) Briefly explain how the labor demand curve is derived for these firms. 2. (12 points) Briefly describe four reasons, discussed in the textbook, why wages might differ across industries and/or regions. 3. Suppose you are a banker and I offer you the following deal: you give me $1000 today and I will pay you $350 a year from today, $350 two years from today, and $350 three years from today. I argue that this is a good deal for you, since I end up paying you $1050 in return for the $1000 you lent to me, i.e. you make $50. a. (6 points) Assuming the market interest rate is fixed at 6% over the next three years, is this......

Words: 516 - Pages: 3

Premium Essay

Eco 550

...Long-Term Investment Decisions Tiffant Lewis Strayer University Dr. Xiaodong Wu ECO 550 March 9, 2014 Introduction One of the most important long term decisions for any business relates to investment. Investment is the purchase or creation of assets with the objective of making gains in the future. Typically investment involves using financial resources to purchase a machine/building or other asset, which will then yield returns to an organization over a period of time. Planning investments involves thinking about a range of issues that have a bearing on where you ultimately decide to put your money. These issues will vary according to your particular age, circumstances and attitude to risk, and thinking about them carefully before you start making commitments will help you avoid some potentially costly mistakes. 1. Outline a plan that managers in the low-calorie microwaveable food company could follow when selecting pricing strategies for making their products as inelastic as possible. Provide a rationale for your response. Pricing the product to reach out the current and potential customers is crucial for the managers. It is their understanding and decisions that are going to determine the success of any business. A major strategy that ensures that customers are retained with the product is to make the product inelastic employing pricing and other strategies. However, before we explain the strategies to make low-calorie microwavable food inelastic, we must......

Words: 2357 - Pages: 10

Premium Essay

Test

...Eco 550 Long-Term Investment Decisions Tiffant Lewis Strayer University Dr. Xiaodong Wu ECO 550 March 9, 2014 Introduction One of the most important long term decisions for any business relates to investment. Investment is the purchase or creation of assets with the objective of making gains in the future. Typically investment involves using financial resources to purchase a machine/building or other asset, which will then yield returns to an organization over a period of time. Planning investments involves thinking about a range of issues that have a bearing on where you ultimately decide to put your money. These issues will vary according to your particular age, circumstances and attitude to risk, and thinking about them carefully before you start making commitments will help you avoid some potentially costly mistakes. 1. Outline a plan that managers in the low-calorie microwaveable food company could follow when selecting pricing strategies for making their products as inelastic as possible. Provide a rationale for your response. Pricing the product to reach out the current and potential customers is crucial for the managers. It is their understanding and decisions that are going to determine the success of any business. A major strategy that ensures that customers are retained with the product is to make the product inelastic employing pricing and other strategies. However, before we explain the strategies to make low-calorie microwavable food inelastic...

Words: 2352 - Pages: 10

Premium Essay

Gm545

...Homework Practice Questions: Microeconomics/Macroeconomics The following questions are for homework practice only. They are to be answered in detail, so it can be used for practice and future reference. 1. Suppose you are hired to manage a small manufacturing facility that produces Widgets.  (a.) You know from data collected on the Widget Market that market demand and market supply have both increased recently. As manager of the facility, what decisions should you make regarding production levels and pricing for your Widget facility? The increase in supply is likely the result of the increased demand, which created economic profit for firms because of higher prices. Depending on whether the increase in supply has expanded sufficiently to causes prices to fall and economic profits to disappear, your firm could profit by expanding output and increasing prices. This can be determined by seeing if prices are higher than they were before the increase in demand. The price per unit tells you the marginal revenue per unit sold. Output decisions should then be based on setting output so that marginal cost is equal to marginal revenue. In this case, the manager would increase the supply and price; but is should increase both in a controlled environment so that the total revenue profits does not drop (for example, raising price beyond a certain price might decrease the demand thus reducing overall profit) Also, the supply should be increased so that Marginal Cost<......

Words: 2648 - Pages: 11

Premium Essay

Managerial Economics

... Chapter 21 – Getting Employees to Work in the Firm’s Best Interests Chapter 22 – Getting Divisions to Work in the Firm’s Best Interests Chapter 23 – Managing Vertical Relationships Managerial Economics, 3rd Edition Luke M. Froeb; Brian T. McCann; Michael R. Ward; Mikhael Shor http://en.wikipedia.org/wiki/Managerial_economics / http://www.coursehero.com/sitemap/schools/501-FIT/courses/1467122-ECONBUS-5421/ http://www.coursehero.com/sitemap/states/Massachusetts/ 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] Managerial decision areas include: • assessment of investible funds • selecting business area • choice of product • determining optimum......

Words: 83490 - Pages: 334

Premium Essay

English Literature

...INTRODUCTION There is little doubt that no two people study the same way, and it is a near certainty that what works for one person may not work for another. However, there are some general techniques that seem to produce good results. So I decided to concentrate on working for this research because it’s very important for the readers to read this so that they have to step up in learning styles. My purpose of doing this research is to develop myself and to serve this thing as stepping stone to make a thesis and in consideration in making a book. Now I am making this just to show you how the proper process of learning is. The purpose of this research is to provide us significant ideas about real learning styles, study skills and thinking skills in analyzing some neither questions nor problems that we don’t know and to improve and enhance our memory in studying some lessons in a book. It also improves us to organize our studies, express our ideas clearly and effectively and how to communicate with others clearly and fluently. The first part of this research is focused on defining the three bodies of skills and you will know the utilization of effective language-learning strategy is. These three bodies of skills approaches us to have more experience on how to learn to be critical to success in school, considered essential for acquiring new good grades and useful for learning through out’s life. Of course this convinces us that these skills can be applied in other......

Words: 1625 - Pages: 7

Premium Essay

Blaaaaaaah

...internationalstudiesdefinitionkan... - Isalin ang pahinang ito 1 Dec 2011 – A HABIT is something that is done on a scheduled, regular and planned basis that is not relegated to a seccond place or optional place in one's ... Meaning of study habits wiki.answers.com › ... › Learning Theories - Isalin ang pahinang ito Relevant answers: What is the meaning of good study habits? good study habits is simply studying good. What is study habits? == Answer ==. The manner with ... What is the Definition of study habit wiki.answers.com/.../What_is_the_Definition_... - Isalin ang pahinang ito It means you are not distracted by anything, you have a certain place to go where it is quiet everyday where you study and do homework. Basically it means that ... What are study habits wiki.answers.com › ... › Education › Learning Tips - Isalin ang pahinang ito Study habits are the ways that you study - the habits that you have formed during ... It means you are not distracted by anything, you have a certain place to go ... Study Habits - Term Paper - Rojilei www.termpaperwarehouse.com/.../Study-Habi... - Isalin ang pahinang ito 9 Jan 2012 – Before we proceed, let's define the meaning of study and habit. Study is to buy out the time and dedicate self to application and the task of study ... Study skills - Wikipedia, the free encyclopedia...

Words: 389 - Pages: 2

Premium Essay

Abseenteism

...Using Student Self-Reflections to Improve Student Study Habits in the Mathematics Classroom A Capstone Project Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Arts in Teaching: Mathematics Nancy Daly Department of Mathematics and Computer Science College of Arts and Sciences Graduate School Minot State University Minot, North Dakota Summer 2011 ii This capstone project was submitted by Nancy Daly Graduate Committee: Dr. Laurie Geller, Chairperson Dr. Cheryl Nilsen Dr. Rebecca Anhorn Dean of Graduate School Dr. Linda Cresap Date of defense: Month day, year iii Abstract Type the abstract here. Do not indent. It should be one block paragraph. The abstract is a summary of your paper. iv Acknowledgements Type your acknowledgements here. Indent each paragraph 0.5 inch. You can thank whomever you choose. v Table of Contents Page Abstract .................................................................................................................. iii Acknowledgements ................................................................................................ iv List of Tables ....................................................................................................... viii List of Figures ........................................................................................................ ix Chapter One: Introduction ................................................................

Words: 7903 - Pages: 32

Premium Essay

Mod 2 Pe1

...ATSS-DCD 21 November 2012 MEMORANDUM FOR All section members SUBJECT: Preparing for the Promotion Board 1. This memorandum will provide you with information that will help you better prepare for the local promotion board. 2. Soldiers attending this promotion board will be evaluated on nine subjects: a. personnel appearance b. military bearing c. self-confidence d. oral expression e. conversational skills f. knowledge of world affairs g. awareness of military programs h. knowledge of basic soldiering I. attitude 3. Three actions that will better prepare all soldiers attending the promotion board are: a. STUDYING. Get a copy of the memorandum that tells when the board is, who the board members are, and what subjects will be asked. Study the questions and answers in the study guide in these nine subjects, but also be prepared to answer other questions. Read the newspaper, watch the news, and be prepared to express your opinions on any local, national, and world events. Know your chain of command and unit history. b. PREPARING YOUR UNIFORM. Reference AR 670-1 for wear and appearance of the uniform. Before board takes place turn your uniform in for alteration’s and cleaning. I will check the proper fit of the uniform of every soldier appearing before the......

Words: 259 - Pages: 2

Premium Essay

Sandee.Docs

...Study Skills Questionnaire Name ________________________________ Date________________ To gain a better understanding of yourself as a learner, it is helpful to identify the study skills you use. You can determine if your study skills need a boost or if they are fine just the way there are now. This informal inventory is a short and quick tool for assessing your study skills. This is not a test, so please ask for assistance when/where you feel you need it. Answer each question as honestly as you can. There are 30 questions. Directions: 1. Read each statement and think about it. 2. Place an X in the column that best describes your current level as it relates to the study statement. Example…. Reading Text Books 1. I browse headings, pictures, chapter questions, and summaries before I read a chapter. Rarely Sometimes X Often If this statement happens to be true some of the time for you, then place an X as shown in the appropriate column (which is “sometimes”). At the end of the questionnaire, you will have a chance to self-score the results. Give it a try! Remember…Applying what you learn from this questionnaire is the real key. For more information about study skills, contact the CONNECT TO SUCCESS OFFICE Room #1655 or dana.kobold@rrcc.edu or 303.914.6317 Please note: Handout content adapted from the University of Central Florida’s Student Academic Resource Center Reading Text Books 1. I browse the headings, pictures, chapter questions and summaries before I......

Words: 823 - Pages: 4

Free Essay

Letter to School

...999 Park Ave Bridgeport, CT, 06604 November 19, 2011 Diane Mirvis 126 Park ave Bridgeport, CT 06604 Dear President Mirvis: Hello, my name is XXX, and I am an international student. The library is being the most popular place in Univerisity of Bridgeport because of your work hard. However, most of the students say that the network service needs to improve. If students are satisfied with the network, they would prefer study in the library. The solution is to upgrade network service which just cost few money. It benefits for everyone who studies or works in the library. There is a serious problem be concerned University of Bridgeport students who study in the library. I often study in the library. One of the network problems is network instability. For example, I have to research some information about my assignment, because my first language is not English, I always research more academic information after class or look up the unknown words in an online dictionary. However, I have to connect the UB network approximately every five minutes. I was really bothered by the unstable network here. This action which is frequently loggeing on to the internet makes my learning efficiency lower, because I cannot focus on the studying. The unstable network not only bothered me, but also bothers my friends. There are a statistic for this issue. My four......

Words: 567 - Pages: 3