Purchase Solution

Output Decision Making

Not what you're looking for?

Ask Custom Question

Respond to the following:

a. In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets.
b. Cite as many examples as you can of these types of businesses.
c. Explain why the profits of such firms tend to increase when there is an excess supply of the inputs they use in their production process.

Purchase this Solution

Solution Summary

This answer provides you an excellent discussion on Output Decision Making

Solution Preview

Respond to the following:

a. In certain industries, firms buy their most important inputs in markets that are close to perfectly competitive and sell their output in imperfectly competitive markets.
The several industries firms buy their inputs in the markets that are close to perfectly competitively and sell their output in imperfectly competitive markets. In general, commodity markets and markets of raw materials move very close to being perfectly competitive. The reason for this is that there are many sellers and buyers, there are no strong exit or entry barriers, and the prices at which deals are struck are known to buyers and sellers. The output sold n imperfectly competitive markets sports a brand and is differentiated. Differentiation and ...

Solution provided by:
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
Recent Feedback
  • "I read your comments, and thank you for this feedback. Do I need to find other studies that applied this methodology Ive used? That's where I'm stuck at."
  • "Thank you kindly sir. "
  • "Excellent and well explained. --Thank you kindly. "
  • "Awesome notes. I appreciate you."
  • "I have the follow-up project and I will assign that to you very soon. "
Purchase this Solution


Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.