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Chris M.
Chris M., M.S.W. Social Work
Category: Homework
Satisfied Customers: 2788
Experience:  Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
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3. Describe the difference between marginal cost and average total cost. Why are both of these costs important to a profit-maximizing firm?

Part B: Answer each of the following questions in one to four sentences.

1. Tina hires Jeff to do odd jobs around her home and agrees to pay him $5 per hour. Tina further agrees to guarantee Jeff at least 40 hours of work per week, and to pay him 1.5 times his base pay for any hours worked beyound 40. If Jeff works 45 hours this week, are his wages a fix cost or a variable cost to Tina? Explain.

2. List the charateristics of a perfectly cometitive market.

3. Imagine that you're on vacation in Russia, when suddenly your're arrested and accused of spying for the United States. ( You're innocent, of course.) Your captors inform you that if you confess, you'll recive a prison sentence of two years, while your co-conspirator (whom you've never heard of) will receive a prison sentence of twenty years. If you both confess, you'll each receive a prison sentence of five years. You're also told that your co-conspirator is being offered the same option. If you both maintain your innocence, however, there's not enough evidence to convict either of you. Applying economic theories to the problem, what should you choose to do, and why?

4. A hotel owner, having heard that new hotels plan to open in his area, says, "We have too many hotels in this town already. Statistics show that vacancy rates average 20 percent on any given night." Assuming this is correct, evaluate his negative assessment of the situation in terms of business-stealing and product-variety externalities.

5. Explain the theory that education acts as a signaling device. How dose this contrast to the theory of education as an investment in human capital?

6. Explain the difference between inferior goods and normal goods. As a developing economy experiences increases in income (measured by GDP), what do you predict will happen to the demand for inferior goods?

7. Indicate whether each of the following is a private good, a common resource, a natural monopoly, or a public good (according to the the definitions in your textbook).
A. A fireworks display
B. A movie viwed at a larger theater
C. A video rental

8. The consumption of alcohol is often cited as an example of a negative externality. Explain a situation in which alcohol would be considered a negative externality.

9. Describe the purpose of antitrust laws. What do they accomplish?

10. Desrcibe why a consumer who chooses a consumpption bundle in which the relative price exceeds the marginal rate of substitution can't be at an optimum.
Submitted: 5 years ago.
Category: Homework
Expert:  Chris M. replied 5 years ago.



When is your deadline for these questions?

Customer: replied 5 years ago.
Tomorrow at noon.
Expert:  Chris M. replied 5 years ago.

OK. I'll post the answers before your deadline.



Expert:  Chris M. replied 5 years ago.

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