Assignment 8 Microeconomics

Order Description

Part A
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 plutonium-fueled

transportation.
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
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:
Russia Panama
Gloves 20 180
Hats 80 90

a. What is each country’s opportunity cost of producing gloves and hats?
b. If the countries could, should they trade? Provide one (1) supporting fact to support your

position.

Writing Style APA (American Psychological Association)
Note: To find detailed information on APA manuscript style guidelines on the Internet, go to

www.apastyle.org.
Margins 1” all sides
Paragraph The entire document should be double-spaced on standard-sized paper (8.5″ x 11″)
Headings Bold
Type Style and Size Times New Roman, 12 point
Software MS Word
Student/Assignment Information
The following information should be on the first page on the top left side of the page in the

format provided below. Do not provide a cover sheet.
Student Name
Student Identification Number
Course Number and Title
Assignment Number and Title

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