ASSIGNMENT 08
C13
Microeconomics
Directions: Be sure to save an electronic copy of your
answer before submitting it to Ashworth College for grading. Unless otherwise
stated, answer in complete sentences, and be sure to use correct English,
spelling and grammar. Sources must be cited in APA format. Your response should
be four (4) double-spaced pages; refer to the “Assignment Format”
page located on the Course Home page for specific format requirements.
Part
A
Imagine that it is the year 2199.
Technology has progressed at an incredible pace. The latest discovery is the
plutonium engine, which is capable of converting plutonium, a by-product of
nuclear fission, into fuel to power the nuclear reactors in our new form of
transportation, the rocket-car. However, because the firm that invented the
engine, the Futures Unlimited Corporation, already has a government license to
control and distribute the quantity of this certain isotope of plutonium on the
market, it is now conceivably in charge of a monopoly on plutonium-fueled
transportation.
1.
Describe the economic outcome
of this single-price monopoly in terms of profit. Provide one (1) supporting
fact to support your response.
2.
Describe one (1) way that the
Futures Unlimited Corporation makes output and price decisions.
Part
B
1.
Would consumers benefit more
from a tariff or a quota on imports? Provide one (1) supporting fact to support
your response.
2.
Consider the following weekly
production possibilities of gloves and hats in Panama and Russia:
|
Russia |
Panama |
|
|
Gloves |
20 |
180 |
|
Hats |
80 |
90 |
a.
What is each country’s
opportunity cost of producing gloves and hats?
b.
If the countries could, should
they trade? Provide one (1) supporting fact to support your position.
Grading
Rubric
Please
refer to the rubric on the following page for the grading criteria for this
assignment.
