Economics Homework Seven Answers - Student Three

Economics Homework Seven Zachary

1. Identify the four elements of perfect competition.

Many Buyers and Sellers, Goods that are perfect substitutes for each other, Perfect knowledge of the market, and Perfect mobility, are the four elements for perfect competition.

Correct!

2. Describe how you might use competition, perhaps even competing with yourself, to motivate you to achieve more.

Competition with yourself, can motivate you to achieve things that you would not normally achieve. People that exercise self competion , often increase their goal once they have accomplished something.

Superb.

3. We are going to have our midterm in two weeks. Think of a question that you would like to see answered or clarified at the next class.

What is the effect of monopolies on the free market? What should be done about them, if anything?

Haven't gotten to monopolies yet! So don't worry about them for the midterm exam.

4. Do you think the converse of Gresham's Law is true with respect to speech and conversation, such that good speech or conversation (such as discussing the Bible) drives out bad? Explain.

If a Christian does not use foul language among his non-Christian friends, and assures them that he does not use foul language because he is a Christian, his non-Christian friends will usually discontinue their foul language around that certain Christian, either out of respect for the Christian or out of fear of judgement.

Right. Superb example.

5. Explain the difference between total cost, average cost, and marginal cost.

Total Cost refers to the sum of both Fixed Costs and Variable Costs. The Average cost is the total cost, devided by the output. Marginal cost is the additional cost of good when the quantity is increased.

Excellent. (note spelling: "divided", not "devided")

7. Is there perfect competition between homeschooling and public schools? If not, explain the imperfections.

Homeschool and public school are not perfect competitors, because the market consists of only those two competitors. Privet schools were previously in the market competitively, but recently they have been dying due to the struggling economy.

Good analysis. (spelling again: "private", not "privet").

Great substance. 60/60. Perfect!--Andy Schlafly 23:38, 30 October 2009 (EDT)