Reference no: EM13738483
For each of the following market structure characteristics, insert the correct Market Type(s). There may be more than one. Use these abbreviations: PC - perfect competition; MC - monopolistic competition; and M - monopoly.
|
Market Structure Characteristic
|
Market Type
|
|
Advertising is not effective for the individual firm.
|
|
|
MR<D
|
|
|
The seller is a price-taker.
|
|
|
Neither an individual buyer nor seller can affect the market demand and supply curves.
|
|
|
Long-run economic profits are possible.
|
|
|
In long run equilibrium, each supplier produces where SRATC and LRATC are at a minimum.
|
|
|
Advertising is used extensively.
|
|
|
In equilibrium, P = MR = MC.
|
|
|
Profits are maximized at the output where MR = MC
|
|
|
P>MR
|
|
|
Product is unique.
|
|
|
In equilibrium, products cannot be produced at a lower cost or sold at lower price.
|
|
|
Economies of scale are often a barrier to entry.
|
|
|
Products have many close substitutes.
|
|
2. Assume a perfectly competitive market structure. Complete the diagram to show the profit maximizing price and quantity. Label each (use Insert textbox). Is the firm earning economic profits or losses? If so, what will occur over the long-term?
3. A firm sells its product in a perfectly competitive market where other firms charge a price of $80 per unit. The firm's costs are C(Q) = 40 + 8Q + 2Q2. Show your computations.
a. How much output should the firm produce in the short-run?
b. What price should the firm charge in the short-run?
c. What are the firm's short-run profits?
d. What adjustments should be anticipated in the long-run?
4. Complete the diagram showing the profit maximizing price and quantity. Label each. Show and label the deadweight loss (In MS Word, use Insert/Curved Connector, a curved line).
5. A firm is a monopoly with demand and cost functions given by P = 200 - 2Q and C(Q) = 2,000 + 3Q2respectively. Show your computations.
a. Show the equations for MR and MC.
b. Compute the profit maximizing quantity.
c. What is the price at the profit maximizing quantity?
d. Compute total revenue.
e. Compute total cost.
f. What are the profits?
|
What is the own price elasticity of demand
: What is the own price elasticity of demand when Px = $154? Is the demand elastic or inelastic? What would happen to the firm's revenue if it decided to charge a price below $154?
|
|
Growth-innovation-sustainability and succession
: Identify within the scenario the information necessary to complete the template. Once completed, the student must analyze the findings to determine which strategy aligns best with the owner's goals for succession planning and sustainability.
|
|
Discuss three examples of how psychology
: Discuss three examples of how psychology can be used in the workplace, including the benefits to applying psychological concepts.
|
|
Analyze a corporate video of your choice
: Analyze a Corporate Video of your choice which should include at least two (2) pages in APA format supported by your research or references
|
|
What are the firms short-run profits
: How much output should the firm produce in the short-run, what price should the firm charge in the short-run - what are the firm's short-run profits?
|
|
Description of the perceived or real impact on care delivery
: I need a power point slide for each bulleted item with speaker notes. This is an extended assignment which I have attached. Each reference reflects on each bulleted item. Description of the perceived or real impact on care delivery, including posit..
|
|
Elaborate on the scope of using positioning strategies
: Elaborate on the scope of using positioning strategies and What is proactive cannibalization and what is the strategic logic of this concept
|
|
What is the process for assessing the risks
: You met with your department manager, a few of the stakeholders, and the sponsor last week to review the list of possible risks. They accepted most of your risks and agreed that the next step was the assessment. There was some confusion, however, ..
|
|
Managing teams in organizations
: In the adjourning stage the project is coming to an end and the team members are moving off into different directions. This stage looks at the team from the perspective of the well-being of the team rather than from the perspective of managing a t..
|