ECO231
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A. The law of ________ marginal utility states that consumption of any item yields the consumer declining utility holding taste constant.
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B. Monopolistic Competition is one of the markets in-between perfectly _________ market and monopoly market
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C. Any two points on an _________ curve generate the same level of utility.
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D. Factors of production are never demanded for their own sake thus the demand here is a ________ demand
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E. 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.
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F. These concepts of __________ and marginal utility can be used to resolve Adam Smith's diamond-water paradox.
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G. Monopolist ________ profits
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H. These are few but very important features of monopolistic competition. Product ______ using branding and advertisement
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I. Perfect competition means there are few, if any, ________ to entry for new companies, and prices are determined by supply and demand.
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J. 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.
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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?
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L. 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.
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M. _________ utility is a measure of the additional utility that is derived when an additional unit of the good is consumed.
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N. When Adam Smith was referring to "value in use," he was actually referring to the concept of ________ utility.
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O. Price discrimination is a pricing strategy that enables monopolist to charge customers __________ prices for the same good or service.
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P. What does convexity say?
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Q. The _______________ would then say that income is equal to the sum of consumer expenditure.
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R. Note that this (MR) too is equal to price, so the marginal revenue is constant as well, and is equal to average revenue.
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S. 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.
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T. If TR/Q = (P x Q)/Q = Price, what is price?
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U. When good X becomes relatively more expensive, the quantity of good X demanded falls as a result of the ________ effect
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V. An example of price discrimination is quantity/bulk purchase _________
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W. Which of the following is an assumption of the model of perfect competition?
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X. The slope of the _________ curve measures the MRS.
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Y. If a good causes problem for a consumer we say it has _______ effect.
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Z. What does the "non-satiation" expression connotes?
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AA. The demand curve facing a monopoly firm is the ___________ demand curve
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AB. 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.
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AC. An oligopoly is where there are a __________ sellers with similar or identical products
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AD. 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.
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AE. The Bertrand model is essentially the Cournot-Nash model except the strategic variable is price rather than _______
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AF. The theory of distribution is an attempt to explain how _________ is distributed among the of production.
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AG. 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 _____________.
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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.
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AI. The short run profit maximization in monopolistically competitive firm is the same as that of monopoly i.e. ___________________ this condition should hold.
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AJ. In perfect competitive market ______________.
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AK. Microeconomics also supposes that consumer consumers make their buying decisions in an effort to ___________ happiness or benefit.
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AL. Total utility will decline only if _________ utility is negative.
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AM. Which equation is Y = I/Py - Px/Py * X?
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AN. To maximize utility subject to budget constraint, the ratio of marginal utility to price should be_________.
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AO. In a monopoly the company is similar to the ______
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AP. Market structure is the number of firms producing identical goods, which are _______________ in nature.
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AQ. Indifference curves are _______ sloping
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AR. Convexity is based on the notion that as a consumer consumes more and more of a particular good, the additional utility obtained _____________
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AS. How did Adam Smith resolve the problem of low value for water and high value for diamond?
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AT. 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.
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AU. Exchange value, on the other hand, is tied to how much someone is willing to pay for an ________ unit of the commodity.
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AV. Because diamonds are __________, consumers consume few diamonds and the marginal utility of an additional diamond is relatively high.
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AW. Higher indifference curves are preferred to __________ ones, since more is preferred to less (non-satiation).
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AX. Calculate the total revenue for a firm which is selling 10 television sets at N21,000 each.
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