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Perfect Competition

Principles of Microeconomics Review

Once again, more review questions stumping me. Any assistance would be great! Firms who are attempting to engage in price discrimination will offer customers with a ______demand a higher price and customers with a (an) _______ demand a lower price. a. lower; higher. b. normal; inferior. c. less elastic; more ela

Price charging ability

Why will a firm in a perfectly competitive industry choose not to charge a price either above or below the market price?

Economic Concepts Questions

18. If the production function is Q = K^5L^5 and capital is fixed at 4 units, then the average product of labor when L = 25 is (hint: raising a variable to the 0.5 power is the same as taking the square root): a) 2/5. b) 1/5. c) 10. d) none of the above. 20. The change in total revenue attributable to the last unit of

Marginal Revenue Function

Assume the graph attached represents the market demand for a patented prescription drug together with the marginal cost and average cost functions for producing the drug. (note: to simplify the problem, I have assumed that MC is constant @ $20 for all Q over 4 million, and that AFC is reduced essentially to 0 when Q reaches 5 mi

Perfect Competition

Part A: I have drawn the demand curve and I have found the area of profit and the area of consumer surplus. The question says to compute the profit and consumer surplus. I have computed the profit, but I don't know how to compute the consumer surplus. Part B: I am completely clueless as how to check to see that the first 6 th

ATC and minimum efficiency

Please help with the following problem regarding competition. In the purely competitive long-run equilibrium, P = minimum ATC = MC. Of what significance for economic efficiency is the equality of P and Minimum ATC? Of what significance is the equality of P and MC? Distinguish between productive efficiency and allocative

short-run labor demand curve

Consider a firms short run decision to hire workers. assume that a firm produces goods for sale in a perfectly competitive market. labor markets are competitive as well. assume the production function is Q=40L-3L(squared). One unit of a good is sold for $2 a) why does capital not appear in the production function? b) der

Efficient Allocation of Resources

This is actually a "part b" whereas I've finished "part a". Here is the practice problem: Suppose you are a patent officer. Assume that the marginal social cost of the patent increases over time and is given by MSC = 17 * t^2 [by "^2" I mean Squared]. The marginal social benefit of innovation decreases over time: MSBI =

Jerry's Quarry sells building stone in a perfectly competitive market

I am trying to figure out the answers to these question. Nothing in my book guides me towards the solution. I just want verification that I am doing the homework right Jerry's Quarry sells building stone in a perfectly competitive market. At its current level of building stone production, Jerry's quarry has marginal cost

Subscription problem

I need help figuring out the following practice problem - I have solved for some solutions but am not sure of my answers. Please look below and solve alebraically - show work so I know how you got your answers. Question P = 28 - 0.0008Q TC = 120,000 + 0.0006Q2 Where Q is the number of cable subscrib

Price and quantity supplied

Problem: Given 3 equations: MR = 500 - 10Q TR = 2000Q - (20Q)(20Q) didn't know how to put in squared MC = 200 + 10Q Calculate the following: A. The price and quantity supplied for the monopolist B. The price and quantity supplied for the perfect competitor.

Price Lowering in Perfect Competition

Which of the following would occur if a single farm in a perfect competition lowered its price below the long-run equilibrium market price? A) all other farms would lower prices too B) it would not be maximizing profit C) It would get a larger share of the market, and this would be profitable for it. D) Other farms would b

Market price and Marginal Revenue in Imperfect Competition

In the situation of imperfect competition, the relation between market price P and marginal revenue MR for each supplying firm is that: a) P is less than MR at all or most output levels. B) P is greater than MR at all or most output levels. c) P is the same as MR at all output levels d) P is either less than MR at pa

Marginal Revenue - Competitive Firms #34

If a firm under imperfect competition could find buyers for 9 units at a price of $5 (no excess quantity demanded), and if the marginal revenue due to the tenth unit were $2, the highest price at which a firm could find buyers for 10 units must be:

4620- econ

Subject: Profit Maximization in short run under perfect competition Details: Discuss the profit maximization of a firm in Short Run, under Perfect Competition, with the help of Marginal Revenue and Marginal Cost Approach to examine the following cases: a) When a firm enjoys Super Normal Profit. b) When a firm realizes No