Essay about Economics homework problems

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Individual HW2 Name: 8-1 Widget Market The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20, $16, and $12. Five buyers are willing to buy one widget at the following prices: $10, $12, $20, $24, and $29. What is the equilibrium price and quantity in this market? Equilibrium price is $20 and the quantity is 3 units. 8-4 Candy Bars Market a. In the accompanying diagram (which represents the market for chocolate candy bars), the initial equilibrium is at the intersection of S1 and D1. Circle the new equilibrium if there is an increase in cocoa prices. b. In the same diagram, the initial equilibrium is at the intersection of S1 and…show more content…
Number of firms High Low Fixed costs High Low Level of product differentiation High Low Industry growth High Low Buyer switching costs High Low 10-3 Intangible Resources Why might intangible resources like human capital and intellectual assets be a more likely source of sustainable competitive advantage than tangible resources? These create ambiguous resources that are difficult to duplicate. Competitors will have a hard time re-creating the particular resources that deliver the advantage. 10-6 Salons and Teeth Whitening Salon owners have recently started offering teeth whitening services to clients in addition to their more standard services. In a number of states, regulators have ordered the salon owners to stop, claiming that this service constitutes the practice of illegal dentistry. What group would you expect to be behind the state's efforts to ban salons from providing teeth whitening services? Why? Probably the national dental association. By making the state enforce that it is illegal dentistry this allows them to reduce competition in the industry to slow the erosion of profitability. 14 -1 Barbie Dolls and Accessories Why does Mattel set a much lower contribution margin on its Barbie dolls than on the accessories for the dolls? They do this as indirect price discrimination. The low value and high value customers identify themselves by the number of accessories they buy. 14-3 Selling Salsa Your
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