« previous next »

Author Question: Using the utility possibilities frontier above explain three ways that this society of two ... (Read 74 times)

colton

  • Hero Member
  • *****
  • Posts: 627
on: Jun 29, 2018
Using the utility possibilities frontier above explain three ways that this society of two individuals can be made better off without making anyone worse off if it starts at point A.
 
  What will be an ideal response?

Question 2

Comment on the following statement: A firm with market power is able to charge any price it likes.
 
  What will be an ideal response?


amanda_14

  • Sr. Member
  • ****
  • Posts: 342
Reply #1 on: Jun 29, 2018
Answer to Question 1

It could move to the right and make Bill better off while keeping Susan's utility constant. It could move upward and make Susan better off while keeping Bill's utility constant or it could move up and to the right and make both better off.

Answer to Question 2

The statement is false. A firm with market power is constrained by the demand for its product. The firm must charge a price that buyers are willing to pay.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

People with high total cholesterol have about two times the risk for heart disease as people with ideal levels.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Two equivalent ways of drawing a phylogeny Two equivalent ways of drawing a phylogeny
This mural depicts the history of Mexico and its struggles to create a just society in the face of ... This mural depicts the history of Mexico and its struggles to create a just society in the face of ...
Four ways of thinking about the relations among the perception of emotion-inducing stimuli, the ... Four ways of thinking about the relations among the perception of emotion-inducing stimuli, the ...
Mechanisms to Explain the Effects of Massage Mechanisms to Explain the Effects of Massage
Protein methylation protects proteins in two ways Protein methylation protects proteins in two ways
Society: The Basics Society: The Basics
Video: Green alga life cycle Animation

For a complete list of videos, visit our video library