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General Equilibrium


1) Are monopolists guaranteed of making economic profits? 2) Explain the long run equilibrium situation for a monopolistically competitive industry. Give two examples of industries that fit under this category.

A perfectly competitive firm

Question: 1. The graph the follows (see attached file) shows an individual firm in long-run equilibrium. In which market structure is this firm operating? Explain. Compare the long run quantity and price to those of a perfectly competitive firm. What accounts for the difference? Is the equilibrium price greater than, equal to,

Competitive Market Equilibrium

Syracuse Paper supplies printer paper in upstate New York. Like the output of other wholesale distributors, Syracuse Paper must meet strict guidelines and the printer paper supply industry can be regarded as perfectly competitive. Total and marginal cost relations are: TC = $3,600 + $5Q + $0.01Q2 MC = dTC/ dQ = $5 + $0.02

Managerial Economics

The supply and demand equations for a hypothetical perfectly competitive market are given by QS = -100 + 3P and QD = 500 - 2P. a. Determine the firm's optimal (i.e. profit maximizing) level of output and its profit or loss. b. Graph the MR and MC curves and use the graph to find the output at which the two curves intersec

Surplus and shortage discussion

Please assist me by explaining the concepts of the Market Equilibrating Process and how it relates to prior real world experience. â?¢ Explain the market equilibrating process in relation to your experience. Include academic research to support your ideas. â?¢ Explain following components in your explanation: Law o

Perfect competition

Discuss perfect competition and long-run equilibrium. Provide detailed descriptions, definitions and concrete examples of your findings. Additionally, how does the proliferation of global trade and competition contribute to markets moving more away from market-possessing power to more perfect competition? Lastly, when does margi

This is a Managerial Economic Question

A recent report indicatesthat nearly 50 Americans contract HIV each year through blood transfusions.Although every pint of blood donated in the United States undergoes a batteryof nine different tests, existing screening methods can detect only the antibodiesproduced by the b0dyâ??s immune systemâ?"not foreign agents in the bl

Supply and Demand Graph

Consider a market characterized by the following demand and supply conditions: Demand: Px = 50 - 5QX Supply: Px = 32 + QX. Graph the demand and the supply. Label the axis and the equilibrium. The equilibrium price and quantity are, respectively? Looking on how to graph this.

Monopoly Price-Output Decision

Calvins's Barber Shops, Inc., has a monopoly on barbershop services provided in the south side of Chicago because of restrictive licensing requirements, and not because of superior operating efficiency. As as monopoly, Calvin's provides all industry output.. For simplicity, assume that Calvins's operates a chain of barbershops a

Product markets

3. Assume the following cost data are the purely competitive producer: Total product Avg. Fixed Avg. Variable Avg. Total Marginal Product Cost ($) Cost ($) Cost ($) Cost ($) 0


1. What are the three tools the Federal Reserve uses to change the money supply and interest rates in the economy? Which of these tools is most important and why? 2. In each of the following cases, explain whether the statements are true or false, and why: a. If the real money demand is greater than the real money supply, in

Price Matching and Nash Equilibrium

** Please see the attached file for the complete solution response ** Textbook: Thomas and Maurice, Managerial Economics,9th ed., McGraw-Hill , ISBN 9780073402819 Q1: Suppose the two rival office supply companies Office Depot and Staples both adopt price matching policies. If consumers can find lower advertised prices

Microeconomics Problem Set

1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. If doesn't matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt. a. Does either player have a dominant strategy? Explain. b. Is there a Nash equilibrium in the game? Explain.

Managerial Economics

The market demand schedule for noodles is as follows: Price ($ per case) Q Demanded (case per week) 5.40 50,200 6.40 45,200 7.40 40,000 8.40 35,000 9.40

Supply & Demand Problems

I need to answer the following (...stating the curves so that the quantity demanded and quantity supplied are both functions of price, putting price on the horizontal axis. There is more than one demand curve, but all have a slope of -5. Also there is more than one supply curve, but all have a slope of +4.) a) The demand

Simple model of duopoly

In a simple model of duopoly, two firms produce the same good, for which each firm charges either a low or a high price. Each firm wants to achieve the highest profits. The following matrix shows strategies and payoffs for both firms that must decide how to price. Firm B High Low Firm A High 1000, 1000 -200, 1200

Dominant Strategy and Nash Equilibrium

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table: Player B Player A Left Right Top 2 5 1

4 questions.

Having difficulty with these questions. 1. A major cereal manufacturer decides to lower prices from $3.60 to $3.00 per 15-ounce box. If quantity demanded increases by 18%, calculate the price elasticity of demand? Is this an example of elastic or inelastic demand? 2. To increase state tax revenues, the Governor of Californ

Impact of import quota reduction on rubber

Chinaâ??s entry into the World Trade Organization (WTO) is likely to create more competition between local and foreign firms, as well as provide China greater access to the market of exports. This is particularly true in the market for rubber since China is the worldâ??s second largest consumer of rubber. According to the WTO,

New Equilibrium Price and Quantity

6. Assume Psub and Tech is zero for all sections EXCEPT for (vi) below (Double Shift). i. Market Equilibrium: What is the equilibrium price and equilibrium quantity for and ? ii. Elasticity: What is the elasticity at the equilibrium price and output level? iii. Producer and Consumer Surplus: What are the Consumer and

Please see the attached file.

I am trying to figure out these last three questions and I provided some study notes of mine. Could someone please provide me with thorough and correct explanations for these three questions. Thank you!

Perfect Competition: sample question

A representative firm with long-run total cost given by TC = 20 + 20q + 5q2 operates in a competitive industry where the short-run market demand and supply curves are given by QD = 1,602 - 40P and QS = - 400 + 20P. If it continues to operate in the long run, its profit-maximizing level of output is

Supply and Demand Equilibrium Example Questions

Explain how demand, elasticity, and total revenue are all related to each other. Explain this relationship using at least two examples that incorporates all three concepts. Here is an example of what the response should be? And provide an example. If demand is elastic, an increase in price will cause a(n) _________ in t

Game Theory in Marketing

In the limit pricing payoff matrix, Coa can choose a given row of outcomes by offering a limit price(up) or monopoly price (down). Han can choose a given column of outcomes by choosing to offer a limit price (left) or monopoly price (right). Neither firm can choose which cell of the payoff matrix to obtain; the payoff for each f

Surplus and Shortage of Fish

I need help with this assignment Suppose the total demand for fish and the total supply of fish per month in the Kansas City fish market are as follows: Demand and supply of fish Price Quantity demanded Qua

Determining Equilibrium Price Level under Perfect Competition

In 2008, the box industry was perfectly competitive. The lowest point on the long-run average cost curve of each of the identical box producers was $4, and this minimum point occurred at an output of 1,000 boxes per month. THe market demand curve for boxes was Qd = 140,000 - 10,000P where P was the pric

Cournot equilibrium outputs

HOW MUCH ? 1. Suppose two rival firms face the following industry demand curve, and respective cost curves: P = 500 - q1 - q2 (Market demand) TC1 = 50q1 and TC2 = 50q2 (Respective total cost curves for firm 1 and 2). MC1 = 50 and MC2 = 50 (Respective marginal cost curves for firm 1 and 2) a.) Find the Cournot equi

Short run/supply and demand curve

1) A product's Demand Curve is: Qd = - P + 25, and its Supply Curve is: Qs = 10 + 2P. Algebraically determine the equilibrium price and quantity. 2. The figure below shows a firm in a perfectly competitive market: a. Determine the Shut- down Price b. Identify the firmâ??s short run