Chapter 11 : Questions On Questions

1206 WordsMar 12, 20175 Pages
Chapter 11: Questions for Review 2. Public goods are goods that are neither excludable nor rival in consumption. A tornado siren in a small town is a public good. 3. A cost-benefit analysis is a study that compares the costs and benefits to society a public good. It is important because it is being compare the data of the total benefits to the costs to maintaining and building. And it is hard because there is no price to authorize the value. Problems and Applications 1a. Police protection- private good snow plowing- Common resource education- public goods rural roads- public goods city streets- common resource b. I think the government provides items that are not public goods because to gain revenue. 3a. Economists call people like…show more content…
6. Marginal cost rises because of the diminishing marginal products. The ATC is in a parabola because the firm can add fixed cost on to the additional cost. Then both marginal cost and ATC, comes together in the min of ATC. Problems and Applications 3a. At 0hr, the marginal product is at 0. 1hr, marginal product is at 10. 2 hours, marginal product is at 8. 3 hours, marginal product is at 6. 4 hours, marginal product is at 4. 5 hours, marginal product is at 2. b. c. The additional fish take more time so the total cost curve slope upward. 4a. I see the marginal cost rising and decreasing later. c. The average total cost is a parabola shape. When quantity is short, ATC also decreases. 6a. 300 b. Chapter 14 Questions for review 1. The main characteristics of a competitive market are that there are buyers and sellers and it is easy to come in and out the market. The goods offered by the various sellers are the same. 5. Under the condition where the revenue is less than what it is producing less than the total cost. 6. The competitive firm’s price equal to both short run and long run. In the short run, supply curve is equal to marginal cost curve. Problems and applications 1a. 1b. There will be a negative profit in a long run when other firms come out of the industry. It will keep going on until the price rises to a certain point. 11a. b. The short run effect of an individual producer is that the first supply curve go to 25 dollars and the

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