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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

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

Imperfect Competition Optimal-Search Model

Consider the consumer's optimal-search model analyzed in section 16.2 Suppose that there are nine types of stores each selling at a different price drawn from a uniform distribution where p is a subset of (1,2,3,4,5,6,7,8,9). Answer the following questions: 1. Construct a table showing the consumer's reservation price, and t

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