SaintLeo ECO202 All Modules Discussions Latest 2019 September

ECO202 Principles of Microeconomics

Module 1 Discussion

After watching the
video clip from Jingle All the Way, consider the following:

Prices serve a
rationing function. When quantity demanded exceeds quantity supplied, prices
rise to alleviate the shortage. When quantity supplied exceeds quantity
demanded, prices fall to alleviate the surplus. However, when prices are
inflexible, shortages and surpluses persist. Other rationing mechanisms must
develop.

Using demand and
supply analysis, describe a specific situation where a shortage occurred. Why
were prices unable to adjust in this market?

Combining what you
learned from your readings as well as from the video clip, what other rationing
functions could develop to alleviate the shortage?

ECO202 Principles of Microeconomics

Module 2 Discussion

After viewing the
video clip, Bart Gets an Elephant, consider the relationship between price
elasticity of demand and total revenue, and why Homer didn’t make the smartest
business decision when raising the price of admission. For this week’s
discussion question, you should pick two products: one that is relatively price
inelastic and another that is relatively price elastic. You can determine a
product’s relative price elasticity by considering the Determinants of the
Price Elasticity of Demand listed in your textbook. You should begin by
defining your product in terms of the determinants and then describe how
increases in the price would affect total revenue. Would it make good business
sense to be the one producing and selling these products? Why or why not?

ECO202 Principles of Microeconomics

Module 3 Discussion

After viewing the
video clip from Cool Hand Luke, first consider how marginal benefits and
marginal costs fit in to Luke’s decision, and how the concept of diminishing
marginal utility is at work as Luke eats more and more eggs.

What is driving his
marginal benefits to continue to exceed his marginal cost?

Consider how Luke’s
decision would change if he had to actually pay for each egg he eats. How would
this affect his choice to continue eating?

Consider the concept
of marginal utility per dollar spent (i.e. MU/p) and how it affects the
consumption decisions we make. Have you ever had a time where you actually
bought your second choice rather than your first choice? That is, can you think
of a time where it wasn’t only about marginal utility for you, but about
marginal utility per dollar spent? Explain.

ECO202 Principles of Microeconomics

Module 4 Discussion

After viewing the clip
“Broke“ from The Office, what was Ryan referring to when he said, “Over time
with enough volume, we become profitable.” What short run costs was he focused
on, and what was he ignoring?

Given what you have
learned so far about economies and diseconomies of scale, discuss the
ramifications involved as a firm grows bigger. Use examples from beyond your
readings to describe firms experiencing either economies or diseconomies of
scale and what this implies for competition and for the customers of these
firms.

ECO202 Principles of Microeconomics

Module 5 Discussion

Search the web and
view the video clip 1,000 Flowers Auctioned per Second in Holland. Then,
research the Aalsmeerflower auctions in more detail.

What aspects of
perfect competition do you see present in the Aalsmeer flower auctions? Since
there is no truly perfectly competitive market in the world, but rather markets
that approach this extreme, are there any elements of the Aalsmeer flower
auction that you find do not fit the model of perfect competition?

Describe another
industry that you find fits the model of perfect competition.

ECO202 Principles of Microeconomics

Module 6 Discussion

After watching the
video clip from Forrest Gump, consider that Forrest’s good luck of “being in
the right place at the right time” allowed him to operate as a monopoly.
Typically, the fishing industry is a highly competitive industry where economic
profits are rarely made in the long run. However, in a twist of fate, Forrest’s
boat is the lone survivor after a hurricane washes ashore and destroys all the
other shrimp boats.

Consider the barriers
to entry facing potential competitors in Forrest’s monopoly market. The more
contestable a market, the closer it will be to a perfectly competitive market,
whereas the less contestable a market, the closer it will be to a monopoly.

What barriers to entry
exist in other industries that allow certain firms to operate as a
monopoly? Are these barriers
contestable?

ECO202 Principles of Microeconomics

Module 7 Discussion

Search the web and view
the video clip Golden Balls – £100,000 Split Or Steal? 14/03/08.

After watching the
video clip, answer the following questions:

How does the
Prisoners’ Dilemma apply in the game of Golden Balls?

Is the Prisoner’s
Dilemma entirely applicable in this game? Why or why not?

What would you do if
you were playing this game? Explain your reasoning.

ECO202 Principles of Microeconomics

Module 8 Discussion

After watching the
video clip from The Corporation, consider that labor is a derived demand. What
forces are at work demanding low-skilled labor in the developing world? What
could a country do to improve the types of skills demanded of its labor?