Microeconomics

Directions:  Click on the "file" item at the top left of the browser window.  Click on "Save as..." from the pull down menu.   Do the necessary reading then answer the questions in the file you just saved.   When you are all done then send me your answers as email.  The best thing to do is to include the file with the questions and your embedded answers as an attachment.

NAME:_______________________

A. How would you characterize the market structure of the 'Italian Market' in south Philadelphia? What geographic and product considerations went into your ruling? How would you characterize the market for lunch at the main campus?

B. How would you characterize ease of entry into the university education market (as a provider of same)? What are the entry barriers in starting a new MBA program?

C. Is the firm ever in equilibrium? Is equilibrium a useful concept?

D. How do we determine the normal, economy-wide, accounting rate of profit? Is this the same for all industries? What adjustments must be made in inter-industry comparisons?

E. How are marginal revenue and marginal cost related to the notion of economic efficiency?

F. Is it likely that a large number of firms will provide a product using a production process characterized by increasing returns to scale?

G. There are many CPAs, JDs, and MDs. Are these markets competitive? If not, why not? What is the source of market failure?

H. What is the role of information in market structure determination? Does advertising make a market more competitive?