If monopolistically competitive firms have some control over

Assignment Help Macroeconomics
Reference no: EM13338368

If monopolistically competitive firms have some control over their prices, why don't they set price above average total cost so they realize an economic profit in the long run?

Reference no: EM13338368

Questions Cloud

Would you expect a 10% reduction in food production : Suppose the Department of Agriculture ordered all farmers to reduce the acreage they plant by 10%. Would you expect a 10% reduction in food production? Why or why not?
What is the change in clean springs profit maximizing : Suppose the Clean springs water company has a monopoly on bottled water sales in California. If the price of tap water increases, what is the change in Clean springs' profit maximizing levels of output, price, and profit?
What kinds of responses will suppliers make : What will happen in the next 50 years to the relative demand for each of the following: food, housing, energy, fuel, water?
Can we conclude that it is always a good investment to spend : It is clear that more education results in higher average life time earnings. Therefore, can we conclude that it is always a good investment to spend more income getting more education?
If monopolistically competitive firms have some control over : If monopolistically competitive firms have some control over their prices, why don't they set price above average total cost so they realize an economic profit in the long run?
Find how much q1 changes : Y : income, P2 : price of a substitute good for a 5 percent decrease in P2 find how much q1 changes ?
Explain the concept of the free-rider problem with public : Rivalry and excludability are the two characteristics of goods that are produced through the competitive market system. Compare and contrast the difference in private and public goods based on these two characteristics. Then, explain the concept of t..
Preferential trade arrangement : Define, explain the differences between, and give an example of
What typical measure was adopted to combat the potential : What typical measure was adopted to combat the potential abuse of market power by German Telekom? Why would regulation be been necessary? Why not now?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Need a paper on an economic topic

Need a five page paper on an economic topic from the wall street journal using APA format. the paper needs to include introduction and teh students position on the topic.

  Effects on inflation and real gdp that these policies will

Assume the economy initially is in a long run equilibrium plus the following:  the U.S. dollar is relatively strong against all major foreign currencies.  Suppose the Congress and the President decide to decrease government spending dramatically

  Compute the four-firm concentration ratio

Compute the four-firm concentration ratio (C4) before the merger. Show your work and round your answer to 4 decimal places.

  The economy will contract or shrink if leakages exceed

The economy will contract or shrink if leakages exceed injections. Are you agree with this statement.

  What would the perfectly competitive market price and output

The market demand is given by Q=320-8P. Monopolist's MC=10. a. Calculate the profit maximizing monopoly output and price. b. What is the Lerner-Index of market power for this monopoly

  Describe the purchasing power parity theory of exchange rate

An increase in the dollar price of yen necessarily means a fall in yen value of dollars. Do you agree? Discuss and explain; The critical thing about exchange rates  is that they provide a direct link.

  Assume the rural wage employment can be obtained

Assume the rural wage is $1 per day. Urban modern sector employment can be obtained.

  Why or why not was midwest rhondas employer

On her employment application, Rhonda disclosed that she had been convicted of 2 misdemeanor larceny. Those convictions made it unlawful for her to become an employee of Midwest without FDIC approval. Midwest proceeded with its working relationshi..

  What is the nominal annual interest rate they pay

At a furniture company, customers who purchase on credit, pay an annual effective interest rate of 36% based on monthly compounding. What is the nominal, annual interest rate they pay?

  Elucidate what happens to the price of shoes

Elucidate what happens to the price of shoes and the quantity of shoes consumed after a total ban on imports.

  Draw a graph illustrating supply and demand in market

Describe what would happen in this market in terms of the supply and demand curve and draw a graph illustrating the supply and demand in this market.

  What is the excel formula for macrs depreciation

What is the excel formula for Modified Accelerated Cost Recovery system (MACRS) depreciation? Initial cost 12,000 Salvage price 600

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