Directions: Be sure to make an electronic copy of your answer before submitting
it to Ashworth College for grading. Unless otherwise stated, answer in complete
sentences, and be sure to use correct English spelling and grammar. Sources
must be cited in APA format. Your response should be one (1) single-spaced
page; refer to the "Assignment Format" page for specific format requirements.
Part A (A 1-page response is required.)
Imagine that it is the year 2199. Technology has progressed at an incredible pace.
The latest discovery is the plutonium engine, which is capable of converting
plutonium, a by-product of nuclear fission, into fuel to power the nuclear
reactors in our new form of transportation, the rocket-car. However, because the
firm that invented the engine, the Futures Unlimited Corporation, already has a
government license to control and distribute the quantity of this certain isotope
of plutonium on the market, it is now conceivably in charge of a monopoly on
1. Describe the economic outcome of this single-price monopoly in terms of
profit. Provide one (1) supporting fact to support your response.
2. Describe one (1) way that the Futures Unlimited Corporation makes output
and price decisions.
Part B (A 1-page response is required.)
1. Would consumers benefit more from a tariff or a quota on imports? Provide
one (1) supporting fact to support your response.
2. Consider the following weekly production possibilities of gloves and hats in
Panama and Russia:
What is each country's opportunity cost of producing gloves and
If the countries could, should they trade? Provide one (1)
supporting fact to support your position.
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction
of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice.
Unethical use is strictly forbidden.
LESSON 8: WRITING ASSIGNMENT
Since Futures Unlimited Corporation is a single-price monopoly of plutonium engines, it has the capacity to influence the price that the customers will have to pay for its product and the level of production in order to maximize its profit.
Single-price monopoly’s marginal revenue is related to the elasticity of demand for its good. The demand for a good can be elastic (the elasticity is greater than 1), inelastic (the elasticity is less than 1), or unit elastic (the elasticity is equal to 1). Demand is elastic if a 1 percent fall in the...