Reference no: EM131830756
The following diagram shows the monthly demand for hot dogs in a large city. The marginal cost (and average cost) is a constant $2 per hot dog.
a. If the market for hot dogs is perfectly competitive, how many hot dogs will be sold per month, and at what price? Suppose there are 100 identical firms in this perfectly competitive market. How many hot dogs is each firm selling, and what are the profits for each firm?
b. Suppose the market was almost perfectly competitive, so that each firm has some very limited ability to change the price. What would happen if one of the firms in this market reduced its output by one-fifth, and no other firm changed its output? What would happen to the price of a hot dog? How much profit would the firm earn as a result?
c. Discuss the ability of one firm to reduce output and raise the market price if the market for hot dogs was instead an oligopoly made up of four firms, each initially producing 25,000 hot dogs per month. If only one firm reduced its output by a fifth, what would happen to the price of a hot dog? How much profit could this firm potentially earn?
d. Compare your answers for parts b and c. What does this tell you about the ability to earn profits in perfect competition vs. oligopoly?
|
What amount of subscription revenue should be recognized
: If $42,000 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?
|
|
What is a spreadsheet circular reference
: How does copying formulas down a row or across a column sometimes help us set up a spreadsheet? What is a spreadsheet circular reference? Why is it a problem?
|
|
Journal entries for the company payroll tax expense
: During the month of February, Hennesey Corporation's employees earned wages of $74,000. Withholdings related to these wages were $5,661 for Social Security.
|
|
How do you refer to a range of cells
: How do you refer to a range of cells? Express the following cells as ranges. All the cells in row 2 from C through N.
|
|
What would happen to the price of a hot dog
: What would happen to the price of a hot dog? How much profit would the firm earn as a result?
|
|
Construct the entry to record the redemption of the bonds
: Farmland Corporation issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $388,000.
|
|
What can be contained in a cell of a spreadsheet
: What is an information system? What is a spreadsheet? What can be contained in a cell of a spreadsheet? How do we refer to a particular cell of a spreadsheet?
|
|
Write program that inputs data for a weighted network graph
: Write a computer program, using the language of your choice, that inputs the data for a weighted network graph and computes the least-cost paths using Dijkstra'
|
|
How was the mall like social networking web sites
: When you were in high school (or perhaps middle school), you may have spent time hanging out at a mall.
|