1. Using the theory developed in chapter 13, explain the following: (a) why a worker in Ethiopia is likely to earn much less than a worker in Japan; (b) why the army expects recruitment to rise during economic recessions; (c) why basketball stars earn relatively large incomes; 2. Does the monopolist shown in the graph below earn profits? Why or why not? Explain. Price, Cost, Marginal Revenue ATC₁ P₁ 0 50 MC MR D ATC Quantity 3. Give an example of each of the following: (a) a good rivalrous in consumption and excludable, (b) a good nonrivalrous in consumption and excludable, and (c) a good nonrivalrous in consumption and nonexcludable.
1. Using the theory developed in chapter 13, explain the following: (a) why a worker in Ethiopia is likely to earn much less than a worker in Japan; (b) why the army expects recruitment to rise during economic recessions; (c) why basketball stars earn relatively large incomes; 2. Does the monopolist shown in the graph below earn profits? Why or why not? Explain. Price, Cost, Marginal Revenue ATC₁ P₁ 0 50 MC MR D ATC Quantity 3. Give an example of each of the following: (a) a good rivalrous in consumption and excludable, (b) a good nonrivalrous in consumption and excludable, and (c) a good nonrivalrous in consumption and nonexcludable.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:1. Using the theory developed in chapter 13, explain the following:
(a) why a worker in Ethiopia is likely to earn much less than a worker in Japan;
(b) why the army expects recruitment to rise during economic recessions;
(c) why basketball stars earn relatively large incomes;
2. Does the monopolist shown in the graph below earn profits? Why or why not?
Explain.
Price,
Cost,
Marginal
Revenue
ATC₁
P₁
0
50
MC
MR
D
ATC
Quantity
3. Give an example of each of the following: (a) a good rivalrous in consumption
and excludable, (b) a good nonrivalrous in consumption and excludable, and (c) a good
nonrivalrous in consumption and nonexcludable.
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