Explain method of production that lowers its marginal costs

Assignment Help Microeconomics
Reference no: EM13187965

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.
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: EM13187965

Questions Cloud

Find the force exerted by the water against the gate : Find the force exerted by the water against the gate (w = 62.4).
Consider a uniform flow with speed : "Consider a uniform flow with speed Uinf=2, over a source/sink pair of strength Q and -Q respectively, located at x=-.5 and +.5. Find the value of Q that would make the thickness of the equivalent body 0.1 times its length (ie the value of y at the d..
Explain what is the solubility of the salt : A 1.90 gram sample of a salt dissolves in 9.10 g of water to give a saturated solution at 21 Celsius
How many hamburgers were sold on saturday : A local hamburger shop sold a combined total of 716 hamburgers and cheeseburgers on Saturday. There were 66 more cheeseburgers sold than hamburgers. How many hamburgers were sold on Saturday?
Explain method of production that lowers its marginal costs : 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. c What factors will determine the best numbe..
Define what is the reaction mechanism : What is the reaction mechanism (detailed with arrows) for trans-cinnamaldehyde when reacted with benzyltriphenylphosphonium chloride?
How long will it take the rock to hit : A canyon is 2000 meters deep at its deepest point. A rock is dropped from the rim above this point. Write the height of the rock as a function of time t in seconds. (Use -9.8 m/s2 as the acceleration due to gravity.) How long will it take the rock..
What is the EEOC : What is the EEOC? Explain how the EEOC influences human resources and hiring managers during the recruiting process.
How the difference between an outer join and an inner join : Give a primary key for each relation. Are there any relations for which there is an alternate candidate key which you have not chosen as the primary key? Why or why not?

Reviews

Write a Review

Microeconomics Questions & Answers

  Define trade deficit

With a high and growing US trade deficit, many hope that a depreciation of the dollar would help close the deficit. Explain the logic behind this prediction.

  Define the land resources which are nonrenewable

A supply curve differs from a supply schedule because a supply curve is a graph and the supply schedule is a table. represents all firms in the market, whereas the supply schedule represents one firm. holds the number of suppliers constant, wherea..

  Develop a paper detailing an analysis of market structures

Develop a paper detailing an analysis of market structures and relating pricing strategies that are suitable for each of these structures. Furthermore, include a real world example of pricing strategy for a specific U.S. company by identifying its..

  What is maximized profit

The marginal cost of making a wedding cake is $200. In order to maximize profits, Laura should make more than 20 wedding cakes per month.  make fewer than 20 wedding cakes per month.

  Derive the change in market value of equity as a function

Show how one can derive the change in market value of equity as a function of adjusted duration gap, asset size and interest rate shock.

  Indicate the desirability of discounting the price

You are the manager of a large automobile dealership who wants to learn more about the effectiveness of various discounts offered to customers over the past 14 months. Following are the average negotiated prices for each month and quantities sold ..

  Find the consumer price index (cpi)

Consider three consumer goods: 100 of Good A, 100 of Good B, and 100 of Good C. In the base year, Good A sold at a price of $1, Good B sold at a price of $1, and Good C sold at a price of $1. In the current year, Good A sold at a price of $3, Go..

  Find the firms total sales

if the price elasticity of demand for a product is -5, and the income elasticity of demand for the product is 2.5. If a .5% decrease in product price as accompanied by a 1% decrease in consumer income, the firm's total sales will increase, be the ..

  What kind of externality is associated with services

In order to bring about a socially desirable quantity of landscaping service, what should the government do? Explain in words and show the effect of the government action in a graph.

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Explain rationale for selecting the practices

Analyze the process of forecasting foreign-exchange rates and create a short list of best practices. Explain your rationale for selecting the practices you did.

  Describe what would happen in the short run to prices

The Future 2055 The U.S. economy is at full employment. President North West is spending billions of dollars on military equipment in the U.S. He is also attempting to carry out his promise to put a man on Mars by the end of the decade. He is cons..

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