Microeconomics Answers

A pizza business has the cost structure described below. The firm’s fixed costs are $20 per day.

Output (pizzas per day) Total cost of output (fixed + variable)
0 $20
5 $80
10 $120
15 $150
20 $175
25 $195
30 $210
35 $230
40 $255

What are the firm’s average total costs (ATC) at an output of 10 pizzas?

Explain the economic effect of a price floor at 8$?

Melissa buys an ipod for $100 and gets a consumer surplus of $80. what was her willingness to pay ? If she had bought the ipod on sale for $70, what would her consumer surplus have been? if the price of an ipod were $200 what would her consumer surplus have been ?
show all the above scenarios with diagrams

How may a "free good" be converted to "economic good." Consider an
economic issue to illustrate.

1. What does income inequality say about contemporary American society?
2. What should be done to address income inequality?
Make sure your answers include a point made from the article, graph, or survey you read using the following website.
http://learning.blogs.nytimes.com/2012/01/17/your-moneys-worth-examining-facts-and-attitudes-about-income-inequality/

What Should Be Done To Address Income Inequality and Poverty?

State your conclusion and a piece of statistical evidence that supports your conclusion,

ELASTICITY

1. Research the price elasticity of demand for a good or service on retail.and answer the following:
a. What is the good or service and its elasticity coefficient? If you are not able to find this number, take an educated guess. Explain the meaning of his number.
b. What is the main factor affecting the price elasticity of demand for your case study good or service? Explain.
CONSUMER CHOICE

2. Think of a recent purchase you made or are about to make.

Use the following 5 terms in proper context in a paragraph of no more than 150 words to explain your purchasing decision: the law of diminishing marginal utility, income effect, indifference, marginal rate of substitution, consumer optimum.

Please Underline or highlight each of the terms

Illustrate a shift in the demand curve for bordeaux wine and explain the likely shift factors for the wine,Assume the supply of Bordeaux remains unchanged.Illustrate the impact of a shift in demand for bordeaux wine on its price.

what is the impact of changes in the price levels of similar goods

a) Graphically illustrate a firm engaging in intertemporal price discrimination.
b) Graphically illustrate a firm engaging in peak-load pricing.
c) Explain the underlying reasoning for a firm to adopt intertemporal price discrimination as compared to peak-load pricing. Provide an example of each.