In Perfect Competition, Price is always equal to Marginal Revenue.  Create as an example a Mathematical table wherein Price is always equal to Marginal Revenue.  Here are the formulas that you will need:     Total Revenue = P x Q (that’s Price time Quantity) Marginal Revenue is = change in TR / change in Q

What would the Lorenz Curve look like if there was perfect Income Equality among all Households?

A politician says “the middle class in this country is getting smaller and smaller”.  Tell me a story or give me an example that shows this is not always true (or at least, that the statistics are misleading).

  Are the number of Households equal per Quintile (see image above)?  You must explain your answer, don’t just say equal or not equal.

Even if we lived in a perfect world (for example, a world without discrimination), why would Income Inequality still exist? Explain your answer.

  What is the problem if the government decides to regulate production at Q1?

Using the old method to solve for the Herfindahl Index, why would the government frown upon the scenario below? Firms Market Share A 19 B 18 C 18 D 18 E 9 F 9 G 9

A Price Ceiling is meant to help consumers.  Why is it placed below the Equilibrium Point?  

The absolute price of a luxury watch is $10,000.  The absolute price of a laptop  is $800.  a. Find the relative price of a laptop in terms of a luxury watch. b.  Give me the interpretation of your answer in A.  What is your answer in letter A really telling us?   Here is the formula that you will need:   Rel price of a laptop (in terms of a watch) =   Absolute price of a laptop —————————— Absolute price of a watch 

Refer to the table below.  Using the new method to solve for the Herfindahl Index, would the government consider the scenario above acceptable?  Show your solution.  No solution, no credit.  Firms Market Share A 19 B 18 C 18 D 18 E 9 F 9 G 9