Final Exam -ECO-2302 – What is a price ceiling? What is a price floor?

1.What is a price ceiling? What is a price floor?
2.What is price elasticity of demand? What if the ratio of percentage change in
quantity demanded is 1% to a 5% percent change in price, what happens?
3 (a) What is a perfectly inelastic demand?
(b)What is perfect elastic of demand?
(c) What is total revenue?
(d) What is a sunk cost?
4.Differentiate the short-run from the long-run?
5.Explain the relationship between Price, ATC and AVC in terms of profit and the short-down?
6.Why do monopolies exist?
7.Explain the prisoners’ dilemma.
8.Explain Nash equilibrium.
9.What costs do firms consider in the short-run versus the long run?
10. What are positive externalities? What is network externality?
11.Name the four factors of production.
12.If the % change in quantity demanded is 30%, and the % change in price is -10, what is the price elasticity of demand?
13. What are the differences between a monopoly and a competitive market?
14. How are monopolies created? Also, how do firms maximize profits
15. In numerous aspect of our discussion, we talked about Economic Profit, minimum ATC and barriers to entry, respond by talking about these as it relates to a firm?