Microeconomics Assignment

Hello Attached is the document with all of the questions needed to complete the assignment. Assignment 1 & 2 consist of short answer questions and Assignment 3 & 4 short essay format (about a couple of paragraphs.) This assignment is due Nov. 7th. I would appreciate the help very much. Thank you. Any questions, please ask.

Assignment:1

1. Explain why you would expect supply curves to slope upward on the basis of the principle of increasing opportunity cost.

2. Which do you think is more likely to be a fixed factor of production for an ice cream producer during the next two months: its factory building or its workers who operate the machines? Explain

3. Economists often stress that congestion helps account for the law of diminishing returns. With the mind, explain why it would be impossible to feed all the people on Earth with food grown in a single flowerpot, even if unlimited water, labor, seed, fertilizer, sunlight, and other inputs were available.

4. True or False: The perfectly competition firm should always produce the output level for which price equals marginal cost.

5. Why do we use the vertical interpretation of the supply curve when we measure producer surplus?

Assignments 2:

· Why do economists emphasize efficiency as an important goal of public policy?

· You are a senator considering how to vote on a policy that would increase the economic surplus of workers by $100 million per year but reduce the economic surplus of retirees by $1 million per year. What additional measure might you combine with the policy to ensure that the overall result is a better outcome for everyone?

· Why does the loss in total economic surplus directly experienced by participants in the market for a good that is taxed overstated the overall loss in economic surplus that results from the tax?

· Why is compensating volunteers to relinquish their seats on overbooked flights more efficient than a policy of first-come, first served?

· Why do price ceilings reduce economic surplus?

Assignment: 3
Why have soft drink firms chosen to use Aluminum cans over glass bottles to fill its contents? How does the recycling price of either glass vs. aluminum affect the cleanup of tossed containers? Does the recycle price offered on Aluminum cans over glass bottles offer these firms and added incentive to become part of this cleanup process?

Assignment: 4
Why are there no more complaints (as there were in the past) about being bumped from overbooked flights by today’s passengers?