Economics Homework Seven Answers - Student Fifteen

IsaacZ

1. The 4 elements of perfect competion are many buyers and sellers, goods that are perfect substitutes for each other, perfect knowledge in the market, and perfect mobility of resources.

Correct. (Note: "competition", not "competion")

2. I would use competition to motivate myself by either competing with myself or by competing with a friend. I would try to set my goals higher than the competition trying to do my best to beat it and at the same time acheiving more than what i did without competition.

Excellent. (note: "achieving", not "acheiving")

3. I would like to see long run and short run explained more clearly.

Good question. The "long run" is a period long enough for a firm (company) to vary ALL all its inputs and costs and factors of production, including even its plant size, in order to achieve the lowest possible average costs. An example is how the New York Yankees can built an optimal new stadium in the long run. The "short run" is a time so short that the firm can vary its output only through a more or less intensive use of existing resources, without adjusting fixed costs like plant capacity. Adding temporary bleachers (at significant average cost for the fans who can sit in them) is an example.

4.

Free pass on a question.

5. the total cost is the entire cost for the project. Average cost is the cost per unit. marginal cost is the cost of making one extra unit after the specified Quantity.

Correct.

6. The loss in wealth is $3650.

Nope. See model answer, and be sure to show your work when deriving a calculation. (Minus 3).

7. There is not perfect competition because they are not perfect substitutes, because you are allowed much more freedom in homeschool.

Right. Could also say a bit more. (Minus 1)

56/60. Good work. Midterm next week.--Andy Schlafly 22:19, 31 October 2009 (EDT)