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All firms in the industry have identical cost structures. The industry's total cost has fixed cost of 6000 and constant variable cost of 50.
Please assist in understanding elasticity in application to real life situations, instead of just theoretical.
Explain the difference between the demand curve facing a monopoly firm and the demand curve facing a perfectly competitive firm.
Suppose that in a perfectly competitive industry the equilibrium industry quantity is 10,000 units. Suppose that the monopoly output is 5,000. For a 2-firm Cournot Oligopoly (N =2) known as a duopol
1. If Firms B and C propose a merge, would the Antitrust Division likely challenge the merger? Why or why not?
If firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?
The companies in the detergent market closely fit the mold of a monopolistic competitive firm. Research a company in this market and explain how it fits some of the characteristics of a monopolistic
Many firm have patents giving them monopoly power; yet, many do not price discriminate across state boundaries. Almost surely there are differences in price elasticity of demand across states.
Do you agree or disagree with the following statement, "Only a competitor would offer discounts to selected customers, because a monopolist can always require his customers to pay full price." Care
Consider a monopolist facing a market demand curve given by q = 186- p(q). The monopolist's fixed costs and variable costs are equal to Cf = 2400 and C(q) = q2/10 +10q, respectively.
The following diagram shows the structure of cost and demand facing a monopolistically competitive firm in the short run. Q1. Identify the following on the graph and calculate:
The marginal cost of pollution abatement differs between twp industrial firms. The data for the Acrid Acid Co, and the Smelly Smelter Ltd. Are shown below
Problem: By using the table below, what quantity of output should the firm produce? Explain your answer.
Suppose that a firm's cost per unit of labor is $100 per day and its cost per unit of capital is $400 per day. a. Draw the isocost line for a total cost per day of $2000.
Determine the supply curve for each firm. Express price as a function of quantity and quantity as a function of price. (Hint: Set P = MR =MC to find each firm's supply curve.)
Derive general expressions for average productivity of labor and capital for barstool production as functions of K and L. (Hint: By definition, APL = q/L and APK = q/K)
1. If Company A and Company B form a cartel to market soft drinks, calculate the cartels profit maximizing price quanity combination. 2. Calculate the profit maximizing output produced by each firm.
Task 2: Explain how the following events will affect the average and marginal cost curves of the firm.
Economists use the term imperfect competition to describe: a. all industries which produce standardized products. b. any industry in which there is no nonprice competition. c. a pure monopoly only. d.
Problem 1: Marginal revenue product measures the: a. amount by which the extra production of one more worker increases a firm's total revenue. b. decline in product price that a firm must accept to se
Imagine company A develops some new features that enhance the value of the long distance call. This feature adds substantial fixed cost, but does not affect variable costs. Fixed costs make copying
Part WOW also can be purchased from an outside supplier at $24 per unit. If part WOW is purchased from the supplier, 40% of the fixed costs can be eliminated. If the company purchases part WOW from
Problem: Given the curves shown below, the marginal cost of the 3rd unit of output is:
Problem 1: Given the curve shown below, the marginal product of labor will be maximized at: A) 0 units of output. B) 1 unit of output. C) 2 units of output. D) 3 units of output. E) not enough informa
Suppose an imperfect competitor faces the demand schedule above and its marginal cost is constant at $2. If the firm is able to produce any output level, then it maximizes profits at: