Explain why might a firm making a large economic profit

Assignment Help Macroeconomics
Reference no: EM13234325

1. What is meant by technological advance, as broadly defined? How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive industry; the imitation of a new production process by another firm; an increase in a firm's advertising expenditures?

2. Learning how to use software takes time. So once customers have learned to use a particular software package, it is easier to sell them software upgrades than to convince them to switch to new software. What implications does this have for expected rates of return on R&D spending for software firms developing upgrades versus those developing imitative products?

3. Why might a firm making a large economic profit from its existing product employ a fast-second strategy in relationship to new or improved products? What risks does it run in pursuing this strategy? What incentive does a firm have to engage in R&D when rivals can imitate its new products?

Reference no: EM13234325

Questions Cloud

Political developments in russia : Given the political developments in Russia and the former Soviet-dominated states, evaluate the progress of democracy and capitalist development after the end of communism.
Ideology and his career as pope : What elements of John Paul II's biography do you think shaped his ideology and his career as Pope?
Discuss the different program errors that likely to occure : discuss the different program errors that are likely to occur and how they should be handled within scripts
Explain solution of racemic 2-butanol : What observed rotation is expected when a 1.62 M solution of (R)-2-butanol is mixed with an equal volume of a 0.810 M solution of racemic 2-butanol, and the resulting solution is analyzed in a sample container that is 1 dm long
Explain why might a firm making a large economic profit : How does technological advance enter into the definition of the very long run? Which of the following are examples of technological advance, and which are not: an improved production process; entry of a firm into a profitable purely competitive in..
In the analects of confucius by burton watson : In the Analects of Confucius by Burton Watson...
Explain what will the enthalpy change be for the process : Assuming a temperature of 500 K and expansion against 1. atm of pressure, how much work, in joules, can be done by the system if the octane is completely converted to carbon dioxide and water vapor. What will the enthalpy change be for the process
Discuss different reasons terminating a process and command : discuss the different reasons for terminating a process and the commands used for this purpose.
Explain fully what product differentiation may involve : How does monopolistic competition differ from pure competition in its basic characteristics From pure monopoly? Explain fully what product differentiation may involve. Explain how the entry of firms into its industry affects the demand curve facin..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Comparitive advantage for two countries

Assume labor is the only cost of production and labor coefficients (hours of labor required per unit of output) in MACONDO and KRYPTON for each good are as follows:

  Computation of price level by cpi

Assume the government decides to pass a law that requires all businesses to delay all future layoffs, giving at least 3 months notice to any workers they plan to lay off.

  Describe the idea of trade offs cost also benefit analysis

Describe the idea of trade offs cost also benefit analysis when answering the above question.

  Illustrtae the marginal product of labor

Illustrtae the marginal product of labor.

  Explain how many years would it take to reduce

Explain how many years would it take to reduce the unemployment rate by 3 percentage points, assuming that the current GDP growth rate will continue into the future.

  When figuring the number of people unemployed

When figuring the number of people unemployed, is it the laborforce - the number of employed adults What abou adults in the military the nonadult population institutionalized adults and nonmilitary, non institutionalized adults not in the labor fo..

  Which the competitive firm has a lower price

The costs of a purely competitive firm and a monopoly could be different because the competitive firm is unregulated. the monopoly controls the input prices. the monopoly might experience economies of scale not available to the competitive firm.

  Describe the implications of this economic forecast

Describe the implications of this economic forecast and the income elasticity of demand for the pricing strategy.

  Why government will fix macroeconomic failure

Fiscal policies can work only if private enterprises respond to them in certain way; if they respond in other ways, the policies fail. Explain and give examples.Can the government make things worse by intervening in markets Are there other options..

  Relationship between real gdp and potential gdp

Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to illustrate the equilibrium level of real GDP and prices if the economy is operating:

  Provide two terms which you have heard in the mass media

Provide two terms which you have heard in the mass media, political arena, or in any other venue.

  Evaluate price elasticity of demand

Calculate the price elasticity of demand for the product below using average values for the prices and quantities in your formula.

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