ECO231

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

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

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?

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

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

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

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

H. 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.

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

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

K. 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.

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

M. 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 _____________.

N. Indifference curves are _______ sloping

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

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

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

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

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

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

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

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

W. 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.

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

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

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

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

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

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

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

AE. What does convexity say?

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

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

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

AI. 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.

AJ. 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.

AK. 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.

AL. 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.

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

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

AO. In perfect competitive market ______________.

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.

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

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

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

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

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

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

AW. Monopolist ________ profits

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