Principles of microeconomics-scarcity-social provisioning

Assignment Help Microeconomics
Reference no: EM133201073 , Length: 3 Pages

Assignment:

Essay

Explain how the insights of Friedrich Hayek, Joseph Schumpeter, and Adam Smith regarding business competition can be used to critique both perfect and monopolistic competition. What is problematic about the MR = MC pricing formula deployed in neoclassical theory? A good essay will highlight the key theoretical aspects of each of these models of competition.

Explain in what sense actual business enterprises differ from the textbook neoclassical models as discussed in Dean, Erik et al. 2016. Principles of Microeconomics: Scarcity and Social Provisioning. OpenStax Economics, Principles of Economics. OpenStax CNX. May 18, 2016.

Consider a new business that invests $20 million into a plant to manufacture loaves of bread. The market for bread is say around 100 million loaves and the new firm expects that it will be able to obtain a market share of around 5%. At that level of production, the total cost is $10,000,000. Let us say that it targets a 20% return on its investment. What should the price of a loaf of bread be? Use the principle of target rate of return pricing. If the mark-up rate is 10% what will the full-cost price be?

Here is the link of Dean, Erik et al. 2016. Principles of Microeconomics.

Reference no: EM133201073

Questions Cloud

Why is based budgeting vulnerable to political influence : Why is performance-based budgeting vulnerable to political influence? What are its shortcomings? Would you recommend it for your state? Why or why not?
Which market structure is most efficient in a static sense : Which market structure is the most efficient in a static sense? Which is most efficient in a dynamic sense? Explain your reasoning.
Would prefer world live in to a world of perfect competition : Discuss Why ( or why not) would you prefer the world we live in to a world of perfect competition?
Prepare monthly cash budgets : To Industries prepares monthly cash budgets. The following budget information is available for April and May 2020.
Principles of microeconomics-scarcity-social provisioning : Principles of Microeconomics: Scarcity and Social Provisioning. OpenStax Economics, Principles of Economics. OpenStax CNX. May 18, 2016.
How changes in expected inflation result in change : Explain how changes in expected inflation result in changes in the level of inflation. Use an equation to help explain your answer.
What is the company capital structure policy : Select a publicly traded company, preferable a company from your country that its securities trade in the U.S. capital market. University of the Cumberlands.
Determine the cost of those alternative sources of capital : How can the firm determine the cost of those alternative sources of capital? University of the Cumberlands.
Does the same apply for investment decisions : Does the same apply for investment decisions? Provide a rationale to support your response. College American.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  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..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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