Question about economic theory

Assignment Help Business Management

Reference no: EM1376807

1. When promoting expenditure is raised, which of aggregate and average (cost and revenue) curves shift their positions? describe the direction of the shift. As an industry moves from being a monopoly to a monopolistically competitive one (due to the entry of new competitors as the monopoly's patents expire, for example), what happens to the elasticity of the demand curve facing the firm? Why?

2. What is the service or product supplied by your firm? If there are more than one, pick one. What is the market structure for the market in which your firm supplies this product? Why? What does economic theory tell you about the short-run and long-run economic profits for a firm operating in this market structure?Do you observe that for your firm? Why or why not?

3. In the presence of excess capacity, firms sometimes launch new brands in an effort to increase their profits. Why would a monopolist not launch a new brand? Why do you think that launching a new brand is often done in monopolistic competition? Has your firm launched a new brand (provided a slightly differentiated service) in an effort to increase profits? Should it do/have done so? Why or why not?

4. Why is it that firms can earn profits in the long run in monopoly and oligopoly but not in monopolistic competition and perfect competition? What can firms do in monopolistic competition or perfect competition to make the short run last as long as possible since they can only make profits in the short run? Have you observed any firms employ such tactics? Can you give some examples?

Reference no: EM1376807

Questions Cloud

Illustrate what risk of stock out would result : Design a model with methods also procedures for analyzing diversity also elucidate how you would implement results in a cultural diversity training program. Illustrate what risk of stock out would result from a decision not to have any safety stock..

General-purpose equipment and flexible manufacturing system : Meile has established costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS)

What is journal entry that would record this transaction : Find what is journal entry that would record this transaction - evaluate the Book Value of each of its fixed assets and make decisions regarding the purchases, disposition of various assets and trades.

How valid is mcdonald''s claim fresher hamburger for customer : Management may choose to build up capacity in anticipation of demand or in response to developing demand. Cite advantages also disadvantages of both approaches.

Question about economic theory : When promoting expenditure is raised, which of aggregate and average curves shift their positions? describe the direction of the shift.

Design a process in which a small business is able to ensure : Design a process in which a small business is able to ensure customers are satisfied so that they don't quickly take a passive approach to merely criticise to a large audience without first making someone at the business conscious that a problem e..

Compute the net cash from operating activities : Compute the net cash from operating activities based on the above information - Amazing Glory, Inc. knew a net income of $95,000 including $20,500 in depreciation expense.

Elucidate how do individuals affect organizations : Why is organizational behaviour model important in management. Elucidate how do individuals affect organizations? Elucidate how does organization affect individuals.

Line of furniture manufactured from recycled : Select one of the following products- line of furniture manufactured from recycled as well as reclaimed materials, custom designed jewellery, handicraft supplies, or talk radio show

User Account

All Pages