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    Kelvin Hon
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    This document contains 6 multiple choice or short answer questions about microeconomic concepts: 1. Draw a diagram and explain the impacts on consumer surplus, producer surplus, total surplus, and deadweight loss if a company acquires a patent for a new computer chip and can implement perfect price discrimination. 2. Explain how a rainstorm destroying some vegetables in a region would affect the price of vegetables, marginal product of vegetable growers, and marginal revenue product of vegetable growers. 3. Draw a diagram to illustrate how substantial foreign capital flowing into China since the 1980s has impacted wages and employment in China. That's a concise three sentence summary of the key questions and concepts covered in the sample

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    Microeconomics Exercise 3

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    This document contains 6 multiple choice or short answer questions about microeconomic concepts: 1. Draw a diagram and explain the impacts on consumer surplus, producer surplus, total surplus, and deadweight loss if a company acquires a patent for a new computer chip and can implement perfect price discrimination. 2. Explain how a rainstorm destroying some vegetables in a region would affect the price of vegetables, marginal product of vegetable growers, and marginal revenue product of vegetable growers. 3. Draw a diagram to illustrate how substantial foreign capital flowing into China since the 1980s has impacted wages and employment in China. That's a concise three sentence summary of the key questions and concepts covered in the sample

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    © All Rights Reserved
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    8 views2 pages

    Microeconomics Exercise 3

    Uploaded by

    Kelvin Hon
    This document contains 6 multiple choice or short answer questions about microeconomic concepts: 1. Draw a diagram and explain the impacts on consumer surplus, producer surplus, total surplus, and deadweight loss if a company acquires a patent for a new computer chip and can implement perfect price discrimination. 2. Explain how a rainstorm destroying some vegetables in a region would affect the price of vegetables, marginal product of vegetable growers, and marginal revenue product of vegetable growers. 3. Draw a diagram to illustrate how substantial foreign capital flowing into China since the 1980s has impacted wages and employment in China. That's a concise three sentence summary of the key questions and concepts covered in the sample

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    Introduction to Microeconomics

    Revision Exercise 3
    1.

    Intel Corporation has developed a new computer chip on which it immediately


    acquires a patent.
    (a) Draw a diagram to show the consumer surplus, producer surplus, total surplus
    and deadweight loss in the market for this new computer chip.
    (b) If Intel can implement perfect price discrimination, what will happen to the
    consumer surplus, producer surplus, total surplus and deadweight loss? Explain
    your answer.

    2.

    Recent rainstorm has destroyed part of the vegetables in the Pearl River Delta. How
    does it affect:
    (a) the price of vegetables;
    (b) the marginal product of the vegetable growers; and
    (c) the marginal revenue product of the vegetable growers.

    3.

    Substantial foreign capital has been flowing into the mainland of China since the early
    1980s, how does it affect the wages and workers employed in China? Explain with a
    diagram.

    4.

    Suppose you live in a university hall. You are a non-smoker but you share a room with
    a smoker. Your roommate generates second-hand smoke which you dont like very
    much. According to Coase theorem, how can you tackle this externality?

    5.

    1
    (a) Explain with a diagram how the bubble gum market may create negative
    externalities.

    (b) If the external costs of each pack of bubble gum are $0.5, describe a policy that would
    result in the efficient outcome.

    6.

    The Consumer Council regularly tests the safety of consumer goods and the test result
    is released on the web to the public free of charge. Does this information qualify as a
    public good? Why or why not?

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