Economics Homework Seven Answers - Student Twelve

Trisha M.

1. The four elements of perfect competition are: There must be many buyers and sellers, the goods must be perfect substitutes for each other, the buyers/sellers must have perfect knowledge in the market, and there must be perfect mobility of resources.

Correct!

2. I would use competition with myself by setting a goal for myself. Having completed that goal, I would set a higher goal for myself and compete with my earlier achievements trying to get better and better.

Superb.

3. I will pass on this question.

OK, that's you're free pass on a question.

4. I think that Gresham's Law is true with respect to speech and conversation. I think that with the presence of good and lovely things, evil cannot preside. In conversation and speech, any evil talk cannot resist good, true, and purifying speech and will eventually be purged from the conversation because there is nothing there for it to thrive on. Thus the good drives out the bad.

Terrific answer.

5. The total cost is the fixed cost plus the total variable cost. The average total cost, on the other hand, is the total cost divided by the quantity of units being made. The marginal cost is the cost to make one more unit.

Correct!

6. The loss of the person who didn't host the homeschool dance was $2675.

No, unfortunately the question was not about the "loss of the person." He would have had expenses anyway, so his loss would not be as great as the lost ticket sales. The question was about the "consumer surplus," which is the benefit to the buyers. See model answers when available by Sunday night. Also, please show your work when arriving at a calculation on homework, so you can possibly earn partial credit. (Minus 3).

7. There is not perfect competition between homeschools and public schools because although there are many buyers and sellers and the materials (goods) are perfect substitutes for each other, not everyone has been fully informed as to the advantages/disadvantages of homeschooling and the advantages/disadvantes of going the public school route. Not only this, but the costs for homeschooling or public schooling are not identical. To homeschool, all materials must be purchased by the homeschooler. To send a child to public school, however, requires almost no costs at all since this is already paid for by taxpayers dollars, which would probably have to be paid even if there weren't public schools.

Excellent!

Good work! 57/60. Midterm exam is next Thursday late afternoon, when I'll post it online.--Andy Schlafly 21:58, 31 October 2009 (EDT)