Questions:

1. Describe market failures and government failures. Explain how the government can be used to solve market failures,

2. Explain elasticity as it relates to consumer behavior. How does utility maximization work and explain how it affects consumer behavior.

3. Explain explicit and implicit costs and why both are important when making business decisions. What is accounting profit, and what is normal profit? What is the difference between fixed and variable costs?

4. Describe the characteristics of the pure completion market structure. Why is the consideration of pure completion different in the short run than it is in the long run?

Rubric:

900 – 1,000 Points – Discussion part of the paper is more than 500 words. Everything answered is substantially correct.

800 – 899 Points – Discussion part of the paper is 500 words or more. Most answers are correct.

700 – 799 Points– Discussion part of the paper is 500 words or more. More answers than not are correct.

600 – 699 Points – Discussion part of the paper may not be more than 500 words. Much of the paper is not correct.

Less than 600 Points – Discussion part of the paper is not be more than 500 words. Little of the information provided in the paper is correct.