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    Perfect Competition

    Managerial Economics

    Why are businesses that operate in a perfectly competitive market considered "price takers"?

    Asymmetrical information

    How does asymmetrical information affect the product market? PLEASE USE ANY CITATION, EXCEPT WIKIPEDIA, ENCARTA, OR WORLD BOOK

    Prevent potential entrants from entering an oligopolistic market

    Which of the following examples explains how high cost of entry prevents potential entrants from entering an oligopolistic market? Brittney's Bakery makes chocolate chip cookies. She is a price taker in the market for baked goods. Jim's Jumbo Shrimp Company sells a product for which there are no substitutes. Sam's S

    Is the perfectly competitive model useful for managers?

    This answer just needs to be around 3 short sentences per section. A colleague says to you: â??The perfectly competitive model is not very useful for managers because very few markets in the U.S. economy are perfectly competitive.â? -Do you agree with this statement? Explain. -Regardless of whether you agree or no

    Monopolistic competition

    Explain why the following is an example of monopolistic competition: There are a number of fast-food restaurants in town, and they compete fiercely. Some restaurants cook their hamburgers over open flames. Others fry their hamburgers. In addition, some serve broiled fish sandwiches, while others serve fried fish sandwiches. A fe

    firms in compeitive markets

    Suppose a firm in a perfectly competitive industry has the short run cost function tc=100 + q2 with the corresponding marginal cost curve of mc=2q 1)if the market price is $30 what is the profit maximizing output level for each firm? What is the profit of the firm? 2) what would be the competitive equilibrium price in this ind

    consumer surplus and producer surplus.

    Show the consumer surplus. Show the producer surplus. Suppose that a price ceiling of $12 was imposed. How would this change the consumer and producer surplus? Suppose a price floor of $16 was imposed. How would this change the consumer and producer surplus?

    Profit maximizing output competitive market

    Suppose a firm is operating under a competitive market conditions and the going price for its product is $260. If the firm's short run Total Variable Cost (TVC) function is TVC = 80Q - 6Q2 + 0.2Q3 Total fixed is cost = $1000 a. What is the firm's profit maximizing output? b. How much profit will the

    Bertrand Competition

    In most cities all lumber yards advertise that they have the lowest price in town. In addition, they often claim that they will match the prices of any other lumber yards. Is this Bertrand competition that brings about zero economic profits? Explain.

    expected value and variance .

    1.The following table shows the expected value and variance for 5 projects a firm can undertake. Project Expected Value Variance A $100 $124 B $220 $110 C $100 $138 D $180 $138 E $200 $124 a. Project B dominates all others. True or False? Why? . b. Project C is the least preferable. True or False? Why? c. If the me

    Managerial Economics

    Output FC VC TC TR Profit/Loss 0 100 0 1 100 100 2 100 180 3 100 300 4 100 440 5 100 600 6 100 780 A. Complete the table B. At what output rate does the firm maximize proft or minimize loss? C. What is t

    Perfect Competition

    If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What condition would encourage research and development in competitive industries?

    Market structure: Perfect competition

    1. Complete the following statements for a firm in a perfectly competitive industry (8 points each): a. The firm makes economic profit if the market price for the product is above ___________________ b. The firm's marginal revenue (MR) is the same as the _______________________ c. The firm's breakeven point

    Idea of Monopsony

    Identify the person who originated the idea of " monopsony" and explain clearly her idea. Give atleast one example of monopsony.

    Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

    Describe the market structure in which a typical professional sports team in or outside the United States (e.g. New York Yankees, Kansas City Wizards, New Jersey Mets, Manchester United, etc.) operates. Do they cleanly fit into one of the four structures discussed Managerial Economics and Business Strategy book? If yes, describe

    Expected Market Price & Profits

    You are the manager of a firm that sells a commodity in a market that resembles perfect competition, and your cost function is C(Q)=Q+2Q^2.Unfortunately, due to production lags, you must make your output decision prior to knowing for certain the price that will prevail in the market. You believe that there is a 60 percent chanc

    Markets for Plastic Toothpicks: Concerns

    During the early 1990's the firms in the market for plastic toothpicks were making economic losses due to concerns about plastic toothpicks raised by dentists. Assuming the market for plastic toothpicks most closely resembles that of perfect competition, what impact would this have on the number of firms selling plastic toothpi

    Perfect Competition

    Refer to the attachment for a perfectly competitive firm 1. at a market price of $23, ["profit per unit"] is maximized at an output of: a) 13 units b) 25 units c) 31 units d) 39 units e) 40 units 2. at a market price of $23, ["total profits are maximized"] at an output of: a) 40 b) 31 c) 25) d) 13 e) 39

    Market Price Competitive Firm

    Refer to the attachment for a perfectly competitive firm. If the market price is $10 a) the firm should produce 25 units b) the firm will continue to operate in the short run c) an economic loss will occur d) all of the above

    Rahul Jain:

    Refer to the attachment for a perfectly competitive firm. If the market price is $23: a) the firm should produce 40 units b) the firm will have above normal profits c) economic profits are greater than zero d) all of the above

    Calculating the profit-maximizing price-quantity combination

    Details to question= A monopolist can produce at constant average and marginal costs of AC=MC=5 The firm faces a market demand curve given by Q=53-P A. Calculate the profit-maximizing price-quantity combination for the monopolist.Also calculate the monopolists profits. B. What output level would be produced by the i