PLEASE READ THE FOLLOWING:
Practical Guide To Contemporary Economics (eBook), Chs. 4, 5 and 6
The Everything Economics Book (eBook), Chs. 7 and 8
AMOSweb Imperfect Competition (https://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=market+structures)
Economist article: Battle of the Internet Giants (https://www.economist.com/news/leaders/21567355-concern-about-clout-internet-giants-growing-antitrust-watchdogs-should-tread)
PLEASE ANSWER THE FOLLOWING QUESTIONS:
Meyer describes the good, the bad and the ugly aspects of monopolies. Describe each of these. In thinking about the Economist article about the internet monopolies, can you recognize any of these good, bad and ugly aspects of monopolies with respect to the internet giants that you deal with as a consumer?
2. A Dream Job?
Assume that you are a budding chef, and you want to change careers to run a gourmet food truck – the job of your dreams. You use Chapter 7 from Everything Economics as a guide to help you to decide whether to quite your current job. Assume that your current job pays $16,000 per year. Answer the questions below.
1. What types of items would make up your fixed costs? Assume that these total $6,000 per year.
2. What types of items would make up your variable costs? Assume that these total $8,000 per year.
3. What is your opportunity cost?
3. Assume a total sales revenue of $24,000 – what is your accounting profit?
4. What is your economic profit?
5. Will you quit your job to start running the food truck?
6. What other decision factors are left out of this problem?