Economic theory states that as more firms enter

Assignment Help Macroeconomics
Reference no: EM13338331

Economic theory states that as more firms enter, prices, output and profits per firm decrease. Use the n-firm Cournot model to explain why this occurs

Reference no: EM13338331

Questions Cloud

Reating a public health preparedness action plan : Reating a Public Health Preparedness Action Plan
The industry of manufacturing commuter coaches : Innobus is an organization that operates in the industry of manufacturing commuter coaches
By how much would a proposed merger between the two smallest : By how much would a proposed merger between the two smallest touch screen makers increase the Herfindahl index? Would the government be likely to challenge that proposed merger?
Monopoly manufacture and monopoly retailer merge : Suppose a monopoly manufacturer sells directly to a monopoly retailer. What are the implications in regard to price, output, and profits as compared to the case where the monopoly manufacture and monopoly retailer merge? Explain why
Economic theory states that as more firms enter : Economic theory states that as more firms enter, prices, output and profits per firm decrease. Use the n-firm Cournot model to explain why this occurs
What are the shut-down and break-even points for the firm : There are 100 firms in the market. Market demand is Qd = 500-Pmkt What are the shut-down and break-even points for the firm?
What suggestions do you have for your client in regard to : Suppose you have been hired as an economic consultant to increase your client's sales revenue, and you discover that your client's customers are price inelastic. What suggestions do you have for your client in regard to using changes in your client's..
Why would each firm not increase its output given : In the Cournot homogeneous oligopoly model, why would each firm not increase its output given both firms are choosing the Nash Equilibrium?
The bertrand and cournot oligopoly models differ with regard : The Bertrand and Cournot oligopoly models differ with regard to whether they compete on price of quantity. The profits from each strategy are significantly different. Why?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Why can workers with high incomes expect negative returns

Suppose the real rate of growth of wages subject to Social Security taxes is expected to average 1% per year during the next 40 years. Assume that the Social Security tax rate remains constant, and prove that the average return on Social Security ..

  Show the price and quantity combinations favored by each

Larry, Curly and Moe run the only saloon in town. Larry wants to sell as many drinks as possible without losing money. Curly wants the saloon to bring in as much revenue as possible. Moe wants to make the largest possible profits.

  Should she quit her current job to become an entreprenuer

Suppose Natasha currently makes $50,000.00 per year working as a manager at a cable TV company. She then develops two possiable entrepreneurial business opportunities

  What happens to the economys monetary base

Explain what happens to the economy's monetary base when the Bank Negara Malaysia sells RM800 million in foreign currency to one of the banks operating in the country.

  Explain okun law

Use Okun's law to determine the size of the GDP gap in percentage-point terms. If the potential GDP is $500 billion in that year, how much output is being forgone because of cyclical unemployment?

  Income should the price be increased or decreased

To maximize total income should the price be increased or decreased

  What would happen to the amount of economic investment

What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low ?

  How would technology change impact employment

Polly's Pet Store on the Island of Atlantis has a local monopoly on the grooming of dogs. There are 1,000,000 citizens of the Island of Atlantis and 75% of them love and want dogs, but there are only enough dogs on the island for 25% of them to ha..

  Information regarding global warming

Considering factors such as food supplies, population growth, water availability and renewable energy, compare the marginal costs and the marginal benefits of global warming and describe what an ‘environmentally sustainable' economy would be.

  Mcq question on game theory

Which of the following strategies are used by businesses to capture consumer surplus? Nash equilibria are stable because

  Compute the elasticity of demand in going

Compute the elasticity of demand in going from 2 unit to 3 units. Is the demand elastic or inelastic in this range.

  Do you agree with joes argument

Joe enjoys fishing & goes out about 20 times per year. One day, Sara told him that fishing is too expensive of a hobby. She thinks he should stop going because she calculated that it costs about %28.75 for every fish he catches because he usually ..

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!

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