Exam (elaborations)
1B03 - Microeconomics questions and answers
- Course
- Institution
1B03 - Microeconomics questions and answers
[Show more]
Content preview
1-123 of 123- Useful way for consumers to ensure that the goods they are buying are of high
quality
Give this one a go later!
Brand names
- Workers moving from region to region
,Give this one a go later!
Immigration
- Unemployment increase
- Encourages teens to drop out of school
- Prevents unskilled workers form getting on-the-job training
- Isn't high enough to relieve poverty of working poor
Give this one a go later!
Critics argues that minimum wage causes...
Cost advantages that enterprises obtain due to size, output, or scale of operation,
with cost per unit of output generally decreasing with increasing scale as fixed costs
are spread out over more units of output.
Give this one a go later!
Economies of Scale
- Surplus of labour
- Downwards pressure on wages
- Firms can hire more workers
- Diminishing MP
- Lower value of MP
- Gives new equilibrium
Give this one a go later!
, Increase in supply of labour
- Their income and prices of the goods (can only buy what you can afford)
- BC shows various combinations of goods the consumer can afford, given his/her
income and prices of two goods
*Note: If they want more of one good, they must give up some of the other good
Give this one a go later!
Budget Constraint
- Advances = Increase in MP_L = Increase D_L
* Note: Only shifts labour demand
Give this one a go later!
Technological change (not those that replace labour)
A particular "game" between 2 captured prisons that illustrates why cooperation is
difficult to maintain even when it is mutually beneficial
Give this one a go later!
Prisoner's Dilemma
, In the short run
Give this one a go later!
A monopolistically competitive firm will resemble a monopoly....
Perfectly elastic (P = AR = MR = D)
Give this one a go later!
Competitive firm's demand curve
P = min ATC (LR equilibrium)
Give this one a go later!
Firm will not enter nor exit an industry
Consumers like new products, therefore entry of new firm = positive externality on
consumers
Give this one a go later!
Product-variety externalities
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller codersimon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now