nd $9.a. Using this information, construct precise supply and demand tables for this market.b. What are the equilibrium price and quantity outcomes for this market? Explain your answer.1. (5 pts.) Seeing the success of Philorea, a developing Asian country, in raising its export revenues from automobile sales by reducing prices, Coconoa plans to reduce the price of its principal export commodity, sugar. Why was Philorea successful? Will Coconoas plan yield similar success?? Explain using the concepts developed in class. 2. Explain the diamond water paradox and its solution.3. Outline the two theories of value (relative prices) explained in class.THIRD QUIZEcon 2b Fall 20001. The law of diminishing returns is evidenced by a. rising average fixed cost.b. falling average variable cost.c. rising marginal cost.d. marginal cost below average total cost.e. none of the above.2. To qualify as perfectly competitive, a market must (among other things)a. Contain a large number of independent buyers and sellers none of whom, acting alone, can influence the equilibrium price.b. Contain no impediments to the free entry and exit of market participants.c. Involve the trading of an item all units of which are viewed as identical by buyers.d. Include a. and b., but not c.e. Include a. b. and c.3.External economies may be attributable toa. Increasing returns to scale.b. Internal diseconomiesc. Decreases in input prices associated with industry growth.d. None of the above.4.Which of the following is most likely to be a variable cost for a firm?a.The interest payments made on loans.b.The franchiser's fee that a restaurant must pay to the national restaurant chain.c.The monthly rent on office space that it leased for a year.d.The payroll taxes that are paid on employee wages._____________________________________________________________________Number of TC VC ATC AFC AVCsweaters________________________________________________...
