Perfectly competitive industry determines price and quantity

Assignment Help Business Economics
Reference no: EM13983959

Describe, in details how a perfectly competitive industry determines the price and quantity. Also, explain the role of /te firm in this market regarding price and quantity determination. Show your answers utilizing a graph for the market as well as the firm.

Reference no: EM13983959

Questions Cloud

Should he replace the existing machinery with the new unit : Five years ago, Thomas Martin installed production machinery that had a first cost of $25,000. At that time initial yearly costs were estimated at $1,250, increasing by $500 each year. The market value of this machinery each year would be 90% of the ..
Consider the mutually exclusive alternatives : Consider the following mutually exclusive alternatives: Each alternative has a 5-year useful life and no salvage value. The MARR is 10%. Which alternative should be selected if one uses?
Use the cash flow approach-opportunity cost approach : A company is considering replacing a painting machine purchased 9 years ago for $700,000. It has a market value today of $40,000. The unit costs $350,000 annually to operate and maintain. Analyze this using an EUAC measure and a MARR of 20% to perfor..
Perfectly competitive industry determines price and quantity : Describe, in details how a perfectly competitive industry determines the price and quantity. Also, explain the role of /te firm in this market regarding price and quantity determination. Show your answers utilizing a graph for the market as well as t..
Money will bob need during retirement based on calculations : Bob is a 37 year old and is an account manager with a large telecom company. He's been dragging his feet with his retirement plan, opting instead for expensive trips to vegas and aspen. He has decided its time to get serious about saving for his reti..
Market demand in homogeneous product stackelberg duopoly : The inverse market demand in a homogeneous product Stackelberg duopoly is. Determine the reaction function for the firm 2 follower. Calculate the equilibrium market price. Calculate the profit each firm earn in equilibrium.
Determine if the firms mix of inputs is optimal : Consider a firm using labor and capital as its only inputs. The price of capital is $40 where the price of labor (wage) is $60. Using 500 units of labor and 500 units of capital the firm is producing 1200 units of output. At this mix of input the fir..

Reviews

Write a Review

Business Economics Questions & Answers

  For linear demand function-marginal revenue

For a linear (inverse) demand function, increases in output will cause total revenue to increase when marginal revenue is:

  Government spending increases and tax increases

Assume that a hypothetical economy with an MPC of 0.75 is experiencing severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? $ billion.

  The change in equilibrium quantity

The change in equilibrium quantity will be:

  Portray your switching costs

After you have been in a job for a while, you should portray your switching costs as:

  Government trade intervention in business periodical

Select a company in your country of origin that is involved in importing and/or exporting, run a thorough research on the company’s business operation. Your goal is to understand how government involvement in international trade has helped or harmed ..

  Determine consumption and sacving of maria in period

Maria decides to switch a major and is now a student in business. in period 2, she will have a BA in business and her income will be $88000. determine Maria's lifetime wealth. determine consumption and sacving of maria in period 1 and period 2.

  Explain the differences between external costs-private costs

Explain the differences between external costs, private costs, and social costs and how the presence of external costs leads to market failure.

  Consumer optimal consumption bundle

A consumer splits their income equally between two goods. If the price of one good increases by 10% and their income increases by 5%, show that the consumer's optimal consumption bundle will change despite them being able to afford their original ..

  Increase lead to largest income effect for most consumer

For which of the following goods would a 10 percent price increase lead to the largest income effect for most consumers?

  Health insurance is offered at a community rated premium

Describe the problem of “adverse selection” when health insurance is offered at a community rated premium? Define the term “community rated premium” as well. Is it possible to address the problem of adverse selection by increasing the premium level? ..

  Compute the upper also lower limits which marginal cost

Compute the upper also lower limits within which marginal cost may vary without affecting the profit maximizing output or the price.

  Interpreted as the fraction of people employed

Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U are interpreted as the fraction of people employed and unemployed at any given point in time, respectively. What is the prob..

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