All Terrain Thinking

A Compendium of things I think are Important

Economics: It's not just whats' in your wallet

Questions of the Day
Monopoly

1. What is the difference between the optimal choices of a monopolist and a perfect competitor?

2. We talked about the fishing industry before and mentioned that some workers with a high school education could earn $100,000. As you know, this is well above any average income for workers with this education level and could be interpreted as economic profit in the fishing industry. Please describe some factors which you think could be responsible for the economic profits.

3. Where would you expect to see higher prices for milk, in a poor area in the center of a major metropolitan area or in the metropolitan area's wealthy suburbs?

4. Please explain why a profit maximizing movie theater would charge different prices for children and adults.

5. There is never enough financial aid, so university administrators need to develop a strategy for allocating scarce funds. The question you are to be concerned with is, what strategy would you recommend  a student use if he/ she wanted to maximize the chance of receiving financial aid?  Would you suggest that simply following the standard admissions procedure or would you suggest a visit to campus, a talk to an admissions counselor, and / or an application for early decision? 

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