10. Which of the following best explains Adam Smith's proposition that a competitive market free of coercion, fraud and monopoly leads people to serve the public good in spite of their proclivity towards self-interest? O b) In a market system, free from government coercion, people are free to pursue their self-interest which will inevitably serve the public good. O a) Adam Smith argued that in a situation free of coercion, fraud, and monopoly, the only way for individuals to advance their self-interest is to provide a better service or good, and this serves the public interest. O c) A competitive market serves the public good because without monopolies people have more choices and lower prices and as a result will spend more money, which grows the economy. O d) In a competitive market the absence of monopolies, coercion and fraud leads people to be more public-minded, focus less on self-interest, and serve the public good.

10. Which of the following best explains Adam Smith's proposition that a competitive market free of coercion, fraud and monopoly leads people to serve the public good in spite of their proclivity towards self-interest? O b) In a market system, free from government coercion, people are free to pursue their self-interest which will inevitably serve the public good. O a) Adam Smith argued that in a situation free of coercion, fraud, and monopoly, the only way for individuals to advance their self-interest is to provide a better service or good, and this serves the public interest. O c) A competitive market serves the public good because without monopolies people have more choices and lower prices and as a result will spend more money, which grows the economy. O d) In a competitive market the absence of monopolies, coercion and fraud leads people to be more public-minded, focus less on self-interest, and serve the public good.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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必 15 6 PP Q Moonshine (1) D a. b. 2 C. 3 d. 4 D P 15 6 D Q Moonshine (2) S O A 15 XX 6 15 6 Q Moonshine (3) Q Moonshine (4) 2. "Moonshine" is illegal home brew made by adding sugar to accelerate corn fermentation. Ten pounds of sugar are necessary to make a gallon of moonshine. In the mid-1970s, the price of sugar tripled and the price of moonshine skyrocketed from $6 to $15 a gallon. Which graph in Figure 3-9 best illustrates this? 1
1. Melissa, a physical therapist, develops a stretching routine that relieves back pain. Her clients can perform this routine without diminishing others’ ability to perform the routine, which implies that Melissa’s stretching routine is… rival non-rival excludable a common-resource good
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Figure 4-13 1Price 20 1Price 20 18 Producer A 18 Producer B S1 16 16 + 14 14 12 12 10 10 $2 8. 8 6. 6 4 4 4 6 8 10 12 14 Quantity 2 4 6 16 Quantity 16 10 12 14 Refer to Figure 4-13. If Producer A and Producer B are the only producers in the market, then the market quantity supplied when the price is $2 is Select one: O a. 8 units. O b. 4 units. 10 units. d. 6 units.
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5. Indicate whether each of the following statements is true or false, and explain your answer.A. If a monoplist is producing a level of output at which demand is inelastic, the firm is not maximizing profits and increasing output will decrease total revenu.B. When a monopolist maximizes profits, the price is greater than the marginal cost of producing the output. This means that consumers are willing to pay more for additional units of the product than these additional units of the produce. Thus, the monopolist should produce and sell addional units of output.C.A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100, marginal cost equals $40 , and average fixed cost equals $10. To maximize profit, the firm should produce a smaller output and sell it at a higher price.D. In a monopolistically competitive market, a firm has market power because it produces a differentiated product. This means…
answer this one 3. Now, suppose that in addition to the home country opening up to free trade, the foreign country has alsoopened up to free trade. As a result, both firms sell their product in both markets.A) Find each firms’ overall output, market price in each market, and each firms’ overall profitB) Explain what effect free trade has (relative to no trade) on the firms and consumers Suppose a firm operates as a monopoly in the domestic (home) market for a product. The demand for itsproduct is given by the inverse demand function: P = 120 −QD. The company’s costs are: T C = 20Q+ 200and MC = $20.A) Find the firm’s profit-maximizing output and price as a monopoly.B) Find the firm’s total profit in the monopoly market.Suppose the home country open up to free trade…
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