- Chapter 7.1: How has business changed since Adam Smiths time?
- Chapter 7.2: Suppose that there are five different lemonade stands in the same n...
- Chapter 7.3: How is monopolistic competition different from perfect competition?
- Chapter 7.4: If airlines do not change their prices, how else might they try to ...
- Chapter 7.5: Why do you think a monopolist is called a price maker?
- Chapter 7.6: Do you think that roads are usually made by private businesses, or ...
Solutions for Chapter Chapter 7: Market Structures
Full solutions for Economics: Principles and Practices, Reading Essentials and Study Guide, Workbook | 1st Edition
goods that are excludable but not rival in consumption
two goods for which an increase in the price of one leads to a decrease in the demand for the other
a tax designed to induce private decision makers to take account of the social costs that arise from a negative externality
a strategy that is best for a player in a game regardless of the strategies chosen by the other players
a person who receives the benefit of a good but avoids paying for it
the study of a company’s accounting statements and future prospects to determine its value
transfers to the poor given in the form of goods and services rather than cash
the percentage change in the price index from the preceding period
a small incremental adjustment to a plan of action
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
marginal tax rate
the amount that taxes increase from an additional dollar of income
a monopoly that arises because a single firm can supply a good or service to an entire market at a smaller cost than could two or more firms
the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
claims that attempt to prescribe how the world should be
a person for whom another person, called the agent, is performing some act
variables measured in physical units
regulations on the minimum amount of reserves that banks must hold against deposits
a dislike of uncertainty
the organized withdrawal of labor from a firm by a union