Economics Homework Twelve Answers - Student Nine

Economics Homework 12

Mark B.

1. A Monopsony has only one buyer.

Correct.

2. Production Possibilities are all the different combinations of two different goods that a firm can produce.

Good. More often the curve describes a country rather than a firm, but your definition is fine. You might add "with a fixed amount of resources."

4. No. The Lorenz curve addresses the actual distribution of income versus the theoretical equal distribution of income. The government should pay little attention to it because when they distribute income they make everyone a little poorer.

Superb, could use as a model. Note: "redistribute income," not "distribute income."

5. 350 cars

Correct.

6. Average total cost is total cost divided by quantity. Average fixed cost is fixed cost divided by quantity. Average variable cost is total variable cost divided by quantity. A firm shuts down in the short run when AVC > P

Excellent.

7. An increase in labor, an increase in capital, or an improvement in technology.

Superb.

Perfect answers! 70/70. Might be the first perfect paper in the class this week. Congratulations!--Andy Schlafly 20:24, 13 December 2009 (EST)