User Account

All Pages

Determine the best number of firms to sell the secret to

Assignment Help Microeconomics
Reference no: EM131685444

Question: A firm in a perfectly competitive market invents a new method of production that lowers its marginal costs. What happens to its output? What happens to the price it charges?

a. The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to bribe the employee not to do this? Explain why or why not.

b. Why should this employee probably choose to tell only some of the other firms rather than all of them?

c. What factors will determine the best number of firms to sell the secret to? (Assume that those who get the information keep the secret instead of selling it to still others.)

Reference no: EM131685444

Questions Cloud

Difference between price and marginal cost : If the perfectly competitive firm produces the output at which its marginal cost equals market price, it receives no profit (or a very tiny one).
What historical evidence the author uses in the article : What historical evidence the author uses in article to enhance the power his argument? If there is no obvious argument and introduce the important people.
Draw the demand and supply curves : Draw the demand and supply curves and find the equilibrium price, quantity, and profit per producer.
How marketer influenced you in your decision making process : Critically discuss how marketer influenced you in your decision making process?
Determine the best number of firms to sell the secret to : What factors will determine the best number of firms to sell the secret to? (Assume that those who get the information keep the secret instead of selling).
Evaluate the completeness of their strategy for growth : Suppose Honest Tea has hired you as a consultant to evaluate the completeness of their strategy for future growth.
Why might the marginal product of the second server higher : Assume that the marginal product of a server in a restaurant equals the number of customers he can wait on per hour. The restaurant owner currently uses.
Should the firm raise the price of the product : Developing a new product has taken longer and required more work than was expected at the time the decision to develop was first made.
Define residual claimants in publicly traded corporation : Are shareholders residual claimants in a publicly traded corporation? Why or why not? In some industries, like hospitals, for-profit producers compete.

Reviews

Write a Review

Microeconomics Questions & Answers

  As monetary policymakers care more about inflation

as monetary policymakers care more about inflation stabilization the slope of the aggregate demand curve becomes

  What is the substitution effect of the price changes

Intermediate Microeconomics ECON 302 What is the total effect of the price change and what is the substitution effect of the price change - What is the substitution effect of the price changes?

  Vice president of supply chain management in a major

You are Vice President of Supply Chain Management in a major organization. What processes and procedures would you implement to maximize the efficiency and minimize the costs of the transportation portion of your company's supply chain ? What metrics..

  Private savings-public savings and national savings

Describe what happens to investment, private savings, public savings, and national savings. Compare the size of the changes in the latter to the $20billion of extra government savings.

  Evaluate the clean air act

Evaluate the Clean Air Act and determine if it has been effective from an economic standpoint. Explain your reasoning. Based on your evaluation of the Clean Air Act and additional efforts to address pollution, make policy recommendations that woul..

  What is carl mpc

Assume that Carl and Wanda each make $40,000. Each was given a raise of $4,000. Carl's spending increased from $40,000 to $43,000. Wanda's savings increased from $1,000 to $2,000.

  How might the combined carbon tax and dividend scheme change

How might the combined carbon tax and dividend scheme change the household's consumption bundle and its wellbeing relative to the pre-tax situation?

  What is the expected demand for gasoline at the end of this

At the beginning of this year, daily consumption of gasoline in the US amounted to 344 million gallons. It is estimated that for every 10% increase in the price of gasoline, the demand for gasoline reduces by 2.00%.

  Calculate equilibrium price and quantity if income falls to

if demand is represented by qd 50 -.5p .005i where i is income and i50000 and supply is represented by qs 100 .4p -

  What is the difference between mu and mu-p

What's the difference between MU and MU/P? If the MU/P of pizza is greater than the MU/P of popcorn, what should the consumer do to maximize utility?

  It also previously raised its price from 21 to 23 rivals

suppose that an oligopolistic is charging 21 per unit of output and selling 31 units each day. what is its daily total

  Replacing this electric generation capacity

A large electric utility company has proposed building an $820 million combined cycle, gas-powered plant to replace the electric generation capacity at one of its coal-fired facilities. Develop three other alternatives for replacing this electric gen..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd