This problem occurs with public goods when people attempt to enjoy the benefits of such goods without paying for them

This occurs when the quantity supplied is not equal to the quantity demanded at the actual price.

A change in price is a ____ to producers which incentivizes them to either produce more or less.

An increase in prices of goods and/or services causes this. 

Identify producer and consumer surplus on a demand and supply diagram.

The first level of output at which the long run average costs are minimized is called

Total increases from £500 to £600 when output increases from 20 to 30 units. Fixed costs are £200. Which of the following is true?

a) Marginal cost is £20

b) Average cost falls

Suppose you had a job with a salary of £60,000 a year, which you decided to quit to open your own business. You estimate that your entrepreneurial talent you are putting into your business is worth £45,000 a year. You set up your office in a spare room of your house that you used to rent out for £4,000 a year. Further, you borrow £30,000, for which you are paying interest of £2,000 a year, and use the borrowed amount to buy supplies and materials. You also hire an assistant whom you pay £18,000 a year. Calculate economic costs clearly stating the implicit and explicit costs (points will be awarded for stating all three values correctly).

In monopolistic competition if firms are making abnormal profit other firms will enter and:

A welfare loss occurs in monopoly where:

When a single buyer or seller is able to control the price in a market, they are a

When monopolies charge varied prices to different customers.

A market structure in which firms cannot increase price above the market determined level.

How is the interdependence of oligopolistic structures often demonstrated?

When a percentage change in price and the resulting percentage change in quantity demanded are the same

A perfectly inelastic supply curve takes this shape

What pricing strategy should firms choose to increase TR when PED is inelastic?

A -5 PED and 10% price increase has this % change in quantity demanded

Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes. Is Julie’s demand for envelopes elastic or inelastic? What is Julie’s elasticity of demand?

The area below the demand curve and above the price measures this

Taxes on goods and services or on expenditure and may be imposed either on a per unit basis or as a percentage of the price.

The exhaust from vehicles has this kind of externality on the environment and draw the diagram which represents this.

This lowers costs of production for firms and lowers market price of a good/service.

When maximum price is set above the market equilibrium.