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3 page essay questions1. Is Jill Johnson correct or incorrec

3 page essay questions1. Is Jill Johnson correct or incorrec

3 page essay questions1. Is Jill Johnson correct or incorrect when she says the following: “When I am producing 20,000 pizzas per month , my total cost is $75,000. If I produce 20,001 pizzas, my total cost will rise to $75,003. When I produce 20,002 pizzas, my total cost rises to $75,005 pizzas.” Therefore, my marginal cost of producing pizzas must be increasing.” Illustrate your answer with a marginal cost graph. 2. Determine which market the following industries fit in. Choose from perfectly competitive, monopoly, oligopoly or monopolistic competition. Explain your choice.a. Corn farmingb. Grocery storesc. Electric companiesd. Automobile manufacturing3. In 2006, Wal-Mart closed its stores in South Korea and Germany. Wal-Mart’s most successful markets, like Mexico, are those in which it started big. There, the company bought the country’s largest and best-run retail chain, Cifra, and has never looked back. This year, Wal-Mart is spending more than $1 billion in Mexico to open 120 new stores. What advantages does Wal-Mart gain from buying large retail chains, as it did in Mexico, rather than small chains, as it did in it unsuccessful attempts to enter the South Korean and German markets? (Hint: consider economies of scale).4. In 2007, Nick Saban agreed to leave his job as head coach of the Miami Dolphins to take a job as head football coach at the University of Alabama at a salary of $4 million per year for eight years. Boise State paid their coach Chris Petersen $500,000 in 2007 and they went undefeated that season. Might Saban still be worth a salary of $4 million per year to Alabama even if he is not “eight times better” than a coach being paid $500,000 at another school? In your answer, be sure to refer to the marginal product of labor and the marginal revenue product of labor.5. A student in an Econ 200 class makes the following remark: “the economic model of perfectly competitive markets is fine in theory but not very realistic. It predicts that in the long run, a firm in a perfectly competitive market will earn no profits. No firm in the real world would stay in business if it earned zero profits.” Do you agree or disagree with this statement. Is there a difference between short run and long run losses? Explain. Also discuss short term and long terms costs.

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NB

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