Question;PART;I;Directions;Please answer each of the following questions in a paragraph for each. Explain your thoughts with theory and;examples where applicable.;1. What;are opportunity costs? How do explicit;and implicit costs relate to opportunity costs?;2. If the;average total cost curve is falling, what is necessarily true of the marginal;cost curve? If the average total cost;curve is rising, what is necessarily true of the marginal cost curve?;3. List;and describe the characteristics of a perfectly competitive market.;4. Why;would a firm in a perfectly competitive market always choose to set its price;equal to the current market price? If a;firm sets its price below the current market price, what effect would this have;on the market?;5. Explain;how a firm in a competitive market identifies the profit-maximizing level of;production. When should the firm raise;production, and when should the firm lower production?;6. If;identical firms that remain in a competitive market over the long run make zero;economic profit, why do these firms choose to remain in the market?;PART II;Please click HERE and;read through the article on the Fed?s website on credit liquidity and balance;sheets.;Write a two page paper identifying;1. the position of the federal open market committee.;2. the primary points articulated in the paper.;3. whether you believe Krugman would agree or disagree with the;positions noted in the paper.;Please review this module?s required videos for more information;on Krugman?s position.;PART III: Reflection Essay;As;you read about numerous topics this week including balance sheets and the Fed?s;policy, reflect on the past two years of your life in terms of;microeconomics. Is there information on;the Web site you would have found useful in personal decision making? If not, what would you have found;useful? Write a one page reflection;essay on this topic and cite at least one source.
Paper#56542 | Written in 18-Jul-2015Price : $24