Match each scenario with its effect on the PPC

Drag the tiles to the correct boxes to complete the pairs. Not all tiles will be used.

Match each scenario with its effect on the PPC.

 

the PPC shifts to the right              the PPC shifts to the left                 a point on the original PPC

a point inside the PPC                    a point outside the PPC

 

 

A manufacturing unit uses all its

resources efficiently.                               

 

Andrew has 5 hours to complete

his homework but uses only 3                 

hours, so he doesn't complete it.

 

A country acquires part of its                 

neighboring country.

Step 1: Analyze the effect of each scenario on the price of khaki pants.

Consider the following scenarios. Think about how each scenario would affect the price of khaki pants.

Match each scenario with the appropriate diagram.

1. To take advantage of high prices for snow shovels during a snowy winter, Alexander Shovels, Inc. decides to increase output.

2. The success of the Apple iPhone leads more firms to begin producing smartphones.

3. In the six months following the Japanese earthquake and tsunami in 2011, the production of automobiles in Japan declined by 20 percent.

Match each scenario with the source of monopoly market power.

1. Mary McFly invents the time machine and gets legal protection from competition.

2. Main Line Utilities can operate at a lower cost than multiple electric companies

3. The author of Economics for Dumbbells is given exclusive rights to produce this book.

4. Your city council gives All Talk Communication Services exclusive rights to build high-speed internet infrastructure in your town.

5. DeJeers Jewellers owns 80% of the world's diamond mines.

- Patent

- Economies of Scale

- Control over Resources

- Government licensing

- Copyright