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
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
What are the monopolistic and the competitive elements of monopolistic competition? Please help.
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
Due to the existence of a large number of similar, but not identical, substitutes in most communities, the market for chiropractors is best considered a. an oligopoly b. perfect competition c. monopolistic competition d. a monopoly my answer is d The demand curve for a firm under monopolistic competition is a. U-shape
"In the long run, there is no difference between monopolistic competition and perfect competition." True, false, or ambiguous? Discuss this statement with respect to the following: a. The price charged to consumers - true b. The average total cost of production - false c. The efficiency of the market outcome - ambiguous d
Need help in understanding this type of question. Under the conditions of monopolistic competition, if a firm is earning economic profits in the short run: a. prices are higher in the long run than in the short run. b. firm profits are higher in the long run than in the short run. c. average costs of production are higher
Beer and wine are the only goods produced in an economy characterized by perfect competition. Suddenly there is a permanent shift in the preferences of consumers in favor of beer and away from wine. How would this effect the short and long run for wine? Wouldn't wine suffer a loss in both or just one?
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
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
Why will a firm in a perfectly competitive industry choose not to charge a price either above or below the market price?
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
What does the concept of "coopetition" add to Porter's five forces approach to industry analysis?
On occasion, the US government steps in and issues a tariff on a particular product or raw material being imported into the US. This in turn causes the price of that product to rise. They do this in the attempt to protect various industries in the US. For instance, if the US Steel industry is hurting, a tariff on imported steel
__________ yields the same results as the theory of perfect competition, but requires substantially fewer assumptions than the perfectly competitive model. Baumol's sales maximization hypothesis The Pareto optimality condition The Cournot model The theory of contestable markets none of the above
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
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
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
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
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 =
How would you do this... Lets say industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments
Please assist with this problem: You own a small firm that manufactures and sells a standardized product in a marketplace that closely resembles perfect competition. You have estimated your total cost function at C(Q) = Q + 3Q2, and your marginal cost function as MC = 1 + 6Q. In trying to plan for the upcoming year, you est
Please describe the origins of cost curves in words and pictures.
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
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
Industry structure is often measured by computing the Four-Firm Concentration Ratio. Suppose you have an industry with 20 firms and the CR is 30%. How would you describe this industry? Suppose the demand for the product rises and pushes up the price for the good. What long-run adjustments would you expect following this change i
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.
Herfindahl Index (HHI) is the sum of the squared market shares of all the firms in the market. Company A - 35% market share Company B - 34% market share Company C- 13% market share Company D- 8% market share Company E- 4% market share Company F- 6% market share What is the HHI given the above? And how do I us
I think I'm understanding this better, but I still need some help. I had another BrainMass TA (101733) who was very helpful with concepts (thank you), but I want to cross-reference the response I received with another independent viewpoint... Here is a discussion point that was put to the class, and I'll transcribe it verbat
If a firm finds that its MR exceeds its MC, then the Maximum Profit rules require the firm to: a) increase its output in perfect, but not necessarily imperfect competition b) increase its output in imperfect, but not necessarily in perfect competition. c) increase its output in both perfect and imperfect 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