How does an effective price floor affect buyers and sellers? Why does the government enact price floors? Explain.

The shut-down price is:

option A:the price at which economic profit is zero.

option B:the minimum of the AVC curve.

option C: the intersection of the MC and ATC curves.

option D: the minimum of the AFC curve.

Why do firms prefer being price setters over being price takers, even in the absence of monopoly? explain with an example.

Because of scarcity, we have a price system. What functions does this price system perform? What happens when the price system for certain goods or services does not produce a socially acceptable outcome (example, low-cost housing): are there any alternatives

Qd : 50-p

Qs :-10+p

Calculate the price elasticity of demand at the equilibrium price? Also, calculate the price elasticity of
supply at the equilibrium price? Explain your result for both.

Adams Manufacturing Company established the following standard price and cost data:

Adams planned to produce and sell 2,200 units. Actual production and sales amounted to 2,400 units.

Assume that the actual sales price is $8.15 per unit and that the actual variable cost is $3.95 per unit. The actual fixed manufacturing cost is $2,500, and the actual selling and administrative costs are $620.

Required

a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)

QUESTION 8

For a monopolist:

QUESTION 9

An example of price discrimination is the price charged for:

QUESTION 10

There is only one gas station within hundreds of miles. The owner finds that if she charges $3 a gallon, she sells 199 gallons a day, and if she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:

QUESTION 11

At the long-run equilibrium level of output, the monopolist's marginal cost will:

QUESTION 12

A monopolist will earn economic profits as long as his price exceeds:

QUESTION 13

A monopolist will maximize its profit by:

QUESTION 14

Both a perfectly competitive firm and a monopolist:

QUESTION 15

Without government regulation, the market outcome of monopoly:

From time to time governments impose price controls. Some economists have argued that price controls are an inefficient policy. Why then do governments implement price controls? Discuss two types of price controls that you are familiar with? Under what circumstances would these types of policy be considered an efficient/inefficient policy?

From time to time governments impose price controls. Some economists have argued that price controls are an inefficient policy. Why then do governments implement price controls? Discuss two types of price controls that you are familiar with? Under what circumstances would these types of policy be considered an efficient/inefficient policy?[20 marks]