Economics Homework Twelve Answers - Student Fifteen

IsaacZ

1\. A monopsony is when a buyer has control on all of the purchases.

Correct!

2\. Production possibilities are the different items a firm or country can produce.

Good, but you might add how the curve depicts trade-offs in the output of two goods, or two category of goods.

3\. If demand increases then Q increases, when Q increases demand for labor increases.

Right, but link it more to elasticity. (Minus 1).

4\.

5\. 350 cars

Correct!

6\. AFC is the average fixed cost per each item. AVC is the average variable cost per item. ATC is the average total cost per each item. They are all costs of the individual units. A firm should shut down when his average total cost is greater than his revenue.

Good, but not quite in the final sentence. See model answers when ready. (Minus 1).

7\. An technological advancement in the making of the items.

Correct.

58/60. Good work--Andy Schlafly 21:30, 13 December 2009 (EST)