In what way does this map serve as an abstraction?
Zoom out to the highest level. How does this affect the level of abstraction?
When would each type of map be most useful? Generalize this argument by discussing the level of abstraction needed for alternative economic models.
The map is an abstraction because it is a simplification of reality that focuses only on those aspects that are most essential for the purpose at hand.
At a higher "zoom" level, the map is more abstract - containing less detail about the topography
A more detailed local map is most appropriate when trying to locate a particular address on a particular street. A less detailed map is more appropriate when one is only interested in the major highways that one must travel to get from one town or city to another. The student should somehow recognize that the level of detail in a model depends on what the model is trying to explain. If one wishes to construct a very general model that can be used to explain a wide variety of phenomena, a more abstract model is necessary. A more detailed, and less abstract, model is needed when someone wishes to explain a particular phenomenon in more detail.
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What would be a "credible business plan" for the government to adopt?
What will be an ideal response?
In long-run equilibrium a perfectly competitive firm will operate where the price is
A) greater than MR but equal to MC and minimum ATC. B) greater than MR and MC, but equal to minimum ATC. C) greater than MC and minimum ATC, but equal to MR. D) equal to MR, MC and minimum to ATC.