Assume MU of bananas > MU of coconuts.  Let’s further assume that the price of 1 banana is equal to the price of 1 coconut. How can one make it such that MU bananas = MU of coconuts?

In Behavioral Economics, the term Framing refers to how a problem is presented.  Give an example.

In Perfect Competition, Price is always equal to Marginal Revenue.  Create as an example a Mathematical table wherein Price is always equal to Marginal Revenue.  Here are the formulas that you will need:     Total Revenue = P x Q (that’s Price time Quantity) Marginal Revenue is = change in TR / change in Q

Using the old method to solve for the Herfindahl Index, why would the government frown upon the scenario below? Firms Market Share A 19 B 18 C 18 D 18 E 9 F 9 G 9

Fill up the empty boxes labeled G, H, I, J, K, and L.  Only these boxes, nothing else.  Write your answers in the space provided below; there is no need to create your own table to write your answers. SUMMARY OF CHARACTERISTICS OF 4 MARKET STRUCTURES   Perfect Competition Monopoly Monopolistic Competition Oligopoly Sellers and Buyers Many sellers and buyers       Products Homogeneous products (aluminum)       Entry and Exit Entry and exit are easy G H I Relevant Info Buyers and sellers have all the relevant info they need N/A N/A N/A Long Run Economic Profit No Economic Profit in the long run J K L

Why does a Monopolistically Competitive firm operate in Point A, as opposed to a Perfectly Competitive firm, which operates in Point L (see graph below)?

According to Game Theory – Prisoner’s Dilemma, the US and the Soviet Union both cheated during the Cold War, and instead of sticking to the agreement of cutting down on nuclear weapons, they both increased their production of nuclear weapons (because whichever country that breaks the agreement will have a superior advantage over the other). Let’s apply Game Theory – Prisoner’s Dilemma to gun control.  There are 2 types of people living in the US: criminals and law abiding citizens.  If guns are banned tomorrow, will both parties obey the gun ban?  Explain your answer. 

Answer questions A and B: a. If you are China, what is good about you devaluing your own currency? b. If you are China, what is bad about you devaluing your own currency? 

Perfect Competition: in order to maximize Profit, the firm’s Selling Price and Quantity produced is at MR = MC. In a Monopoly (see graph below, which is a Monopoly), how does the firm know what Price to charge and what Quantity should be produced, in order to maximize Profit?  Explain the process.

Let’s say there is a specific factor input, which is labor.  What will happen to the MRP curve for labor as the price of the product that the labor produces increases?