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Another way to say “competition is about pushing price down to average cost” is that free markets are characterized by:

Suppose a Acme Widgets has the lowest marginal cost curve in the industry, i.e., they can produce every quantity level of widget for a lower marginal cost than any other widget manufacturer. Should Acme produce all of the widgets in the industry?

In a competitive market, sellers sell their product

A competitive firm maximizes profit by choosing

Choose the regions that correspond with a country’s consumer surplus for a product when there is no international trade, and consumer surplus when there is free international trade (no barriers). consumer producer surplus regions.png

Imagine that you can hire four low-skilled workers to move dirt with shovels at $5 an hour, or you can hire one skilled worker at $24 an hour to move the same amount of dirt with a skid loader. Who will you hire if the minimum wage increases from $5 per hour to $6.50 per hour?

label number 26-35

labeling in order number 10 to 17

In a deck of 52 cards, half are red (26 red) and half are black (26 black). What are the odds in favor of drawing a red card?

In a class of 30 students, 18 are taking Math and 12 are taking Science. If 8 students are taking both Math and Science, what is the probability that a student selected at random is taking Science, given that the student is taking Math?