Assume that Donna buys only xavier steak ("x") or yams ("y". Donna's indifference curves, if mapped into a geometric plane, would have a slope of -2 when she has more y's than x's, but would fall at a rate of -1/2 when the opposite is true (more x's than y's). If Donna has 24 x's and 36 y's and you offered her 34 x's, how many
Calvin's Barbershop is a popularly-priced hair cutter on the south side of Chicago. Given the large number of competitors, the fact that barbers routinely tailor services to meet customer needs, and the lack of entry barriers, it is reasonable to assume that the market is perfectly competitive and that the average $15 price equa
Consider the following demand schedule. Does it apply to a perfectly competitive firm? Compute marginal and average revenue. Price Quantity Price Quantity $100 1 $70 5 $95 2 $55 6 $88 3 $40 7 $80 4 $22 8 b. Suppose the marginal cost of pro
What are some of the characteristics of perfect competition? Which types of industries come closest to perfect competition in the real world?
Why are businesses that operate in a perfectly competitive market considered "price takers"?
Explain why there are no economic profits for perfectly competitive firms in the long run. PLEASE DO NOT USE CITATIONS FROM WIKIPEDIA, ENCARTA, OR WORLD BOOK
How does asymmetrical information affect the product market? PLEASE USE ANY CITATION, EXCEPT WIKIPEDIA, ENCARTA, OR WORLD BOOK
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
5 problem/word problems attached
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
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
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
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?
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
I'm looking for help on how to answer the attached questions, based on the graph in said attachment. I'm having trouble deciphering the graph in order to answer the questions. Can you please help?
Provide an example of how efficient managers, as microeconomic market participants, must often respond to changes in macroeconomic market conditions, domestic and foreign.
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.
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
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
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?
According to a Supreme Court ruling, there once was collusion among the leading bakers and food outlets in the province of Alberta. Prior to the conspiracy, bread prices in Edmonton were about equal to the Canadian average. During the period of the conspiracy, bread prices in Edmonton were 15 to 20 percent above the Canadian av
Analyzes how companies can employ the marginal revenue concept and the marginal cost concept to maximize profits using 350 words. To use the concept, variable costs and fixed costs will have to be incorporated into and used with the marginal cost concept. How might competition lessen the possibility of use the marginal concep
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
It is estimated that while world coffee prices hover around 50¢ per pound, production costs are around 80¢ per pound. According to a report issued in September 2002 by the relief agency Oxfam, prices are at their lowest in 100 years, thereby leaving 25 million farmers in crisis. Banks dependent on the industry are collapsing.
Identify the person who originated the idea of " monopsony" and explain clearly her idea. Give atleast one example of monopsony.
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
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
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
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
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