Chapter 11 : Questions On Questions

d) Break even sales change that would change the profits by the same amount as a reduction in price.

One example of a public good is national defense, which provides protection for everyone in the country. “It is considered impractical for individuals to defend themselves more than partially because aggressors may bring superior force to bear, thus making it necessary for the defender, too, to secure the help of others.” (Cooley) Because of this, the government provides defence as a public good. In the United States, for example, we have many sections of national defence. There is the army, marine corps, navy, air force, national guard, and coast guard, which all play vital roles in protecting our country. Another important public good is providing basic medical research. The United States funds research for many diseases and disorders, such as cancer research, and immunization research, and works to make them readily available to all those who need them. These are two of the many public goods the governments

15. In pure competition, each extra unit of output that a firm sells will yield a marginal revenue that is ( )

The definition of public goods is: A public good is an item consumed by society as a whole and not necessarily by an individual consumer. Public goods are financed by tax revenues. All public goods must be consumed

d. Calculate the price elasticity of demand in each market and discuss these in relation to the prices to be charged in each market.

So, to summarize with all the information given, Company A should always strive to have their marginal cost be equal to their marginal cost in order to maximize profit. If they see that their marginal revenue is higher than the marginal cost then more output needs to be produced to get their max profit. In contract, if the marginal cost if higher than the marginal revenue then output needs to

b. At sales price less estimated costs of disposal, if all the following conditions exist:

5.(Market Structures) Determine whether each of the following is a characteristic of perfect competition, monopolistic competition, oligopoly, and/or monopoly:

I’m sure we can all agree that there are some goods that need to be publicly provided by the government in order to ensure that everyone has a minimum amount of benefit from the good, one example being national security. We the people of the United

In order to determine what goods and services the government should provide to its citizens, it is important to understand the reason why the government, whether it is federal, state or local play a significant role in providing goods and services to its citizens. After conducting my research, the primary reason is that it is economically feasible and cost-effective for the government to provide these goods and services to ensure that all citizens are fairly receiving the basic needs for survival. In the United States of America, the government is responsible for protecting and serving all citizens; therefore, the goods or services provided to all citizens are non-rivalrous and non-excludable. According to our textbook, goods and services

8. Compared to a perfectly competitive industry with the same demand and cost curves, a monopoly’s price and output will be which of the following?

11) By how much would the profit contribution of product A has to increase before it will be profitable to produce A?

Goods consumed by the public can be rivalrous, non-rivalrous, have excludability or not have excludability. Combinations of each of these four values can make up exactly what is a public good and how it is treated. Rivalrous can be defined as the consumption can only be used by one individual at a time and not another. The inverse is also true for this definition as non-rivalrous goods can be enjoyed by multiple individuals at once. Items that have excludability deal with ownership. Excludable items mean that an individual has control over the use of the good. Non-excludable items mean that no individual can effectively exclude individuals from use of a particular good. While private goods can be defined as something that is both rivalrous and has excludability, any other item that is not entirely private can be defined as public.

a. Assuming the most current operational cost levels, what sales must it generate to recoup the above investment?

a) In a perfectly competitive market, the price will equal the marginal resource cost. It corresponds