ECO231

A. Expenditure on a particular good is the product of the amount of the good purchased times its price. We can then write the budget constraint as _____________.

B. An example of price discrimination is quantity/bulk purchase _________

C. To maximize utility subject to budget constraint, the ratio of marginal utility to price should be_________.

D. Market structure is the number of firms producing identical goods, which are _______________ in nature.

E. In perfect competitive market ______________.

F. Calculate the total revenue for a firm which is selling 10 television sets at N21,000 each.

G. The consumer is considered to be __________ person, who tries to spend his or her money to derive the maximum amount of satisfaction, or __________, from it.

H. What does the "non-satiation" expression connotes?

I. These are few but very important features of monopolistic competition. Product ______ using branding and advertisement

J. Because diamonds are __________, consumers consume few diamonds and the marginal utility of an additional diamond is relatively high.

K. If TR/Q = (P x Q)/Q = Price, what is price?

L. Monopolist ________ profits

M. Convexity is based on the notion that as a consumer consumes more and more of a particular good, the additional utility obtained _____________

N. Which equation is Y = I/Py - Px/Py * X?

O. Higher indifference curves are preferred to __________ ones, since more is preferred to less (non-satiation).

P. What does convexity say?

Q. When Adam Smith was referring to "value in use," he was actually referring to the concept of ________ utility.

R. A basic assumption of microeconomics is that because a consumer does not have _______________, his or her available cash for spending must be judiciously allocated for maximum benefit.

S. Note that this (MR) too is equal to price, so the marginal revenue is constant as well, and is equal to average revenue.

T. Indifference curves are _______ sloping

U. If Pb = N0.50/milk be the price of milk, and Po = N1.00/bread the price of bread. The relative price of a tin of milk in terms of bread is ____________ a loaf of bread.

V. Exchange value, on the other hand, is tied to how much someone is willing to pay for an ________ unit of the commodity.

W. Any two points on an _________ curve generate the same level of utility.

X. If a good causes problem for a consumer we say it has _______ effect.

A higher indifference curve that lies above and to the ________ of another indifference curve represents a higher level of satisfaction and combination on
a lower indifference curve yields a lower satisfaction.

Z. When good X becomes relatively more expensive, the quantity of good X demanded falls as a result of the ________ effect

AA. Perfect competition exists in an industry where perfect competition is characterized by ________ buyers and sellers, many products that are similar in nature and, as a result, many substitutes.

AB. In a monopoly the company is similar to the ______

AC. Which of the following is an assumption of the model of perfect competition?

AD. How did Adam Smith resolve the problem of low value for water and high value for diamond?

AE. The _______________ would then say that income is equal to the sum of consumer expenditure.

AF. Total utility will decline only if _________ utility is negative.

AG. Perfect competition means there are few, if any, ________ to entry for new companies, and prices are determined by supply and demand.

AH. The theory of distribution is an attempt to explain how _________ is distributed among the of production.

AI. Price discrimination is a pricing strategy that enables monopolist to charge customers __________ prices for the same good or service.

AJ. The slope of the _________ curve measures the MRS.

AK. Since water is not very costly to acquire, people consume _______ water. At this high level of consumption, the marginal utility of an additional unit of water is relatively low.

AL. Consumer utility is achieved when the ratio of marginal utility of one commodity is equal to its price is equal to the _______ of another to its price.

AM. _________ utility is a measure of the additional utility that is derived when an additional unit of the good is consumed.

AN. Because the marginal utility of an additional diamond is higher than the marginal utility associated with an additional glass of water, diamonds have a _________ value in exchange.

AO. An oligopoly is where there are a __________ sellers with similar or identical products

AP. The Bertrand model is essentially the Cournot-Nash model except the strategic variable is price rather than _______

AQ. The demand curve facing a monopoly firm is the ___________ demand curve

AR. Monopolistic Competition is one of the markets in-between perfectly _________ market and monopoly market

By selling 30 units, firm JKB
make N300. After selling the
31st unit, firm’s revenue
increased to 318. What is the
marginal revenue in this
situation?

AT. The short run profit maximization in monopolistically competitive firm is the same as that of monopoly i.e. ___________________ this condition should  hold.

AU. Factors of production are never demanded for their own sake thus the demand here is a ________ demand

AV. These concepts of __________ and marginal utility can be used to resolve Adam Smith's diamond-water paradox.

AW. The law of ________ marginal utility states that consumption of any item yields the consumer declining utility holding taste constant.

AX. Microeconomics also supposes that consumer consumers make their buying decisions in an effort to ___________ happiness or benefit.