Will you make any profits in the short run, Managerial Economics

Assignment Help:

Problem 1:

Using relevant examples, discuss the pricing strategies that firms can use to capture value from their customers.

Problem 2:

You are a manager in a perfectly competitive market. The price in the market is $20. Your costs are represented by TC = 8 + 2Q + 0.5 Q2.

(a) What is your firm's added value?

(b) What level of output should you produce in the short run?

(c) Will you make any profits in the short run?

(d) Explain using demand and supply analysis what happens in the long run. What is the long-run market price and your equilibrium quantity of output?

(e) Suppose a change in consumer preferences forces the market price down to $4. How would you respond in the short run? In the long run? What do your answers depend on?

(f) Briefly explain under what conditions the model of perfect competition is an inadequate descriptor of market forces, even if there exist many buyers and many sellers.


Related Discussions:- Will you make any profits in the short run

Effect on a consumer''s equilibrium, Problem: (a) Explain with the help...

Problem: (a) Explain with the help of a diagram, the effect on a consumer's equilibrium, of an increase in the price of commodity X while the consumer's money income and price

Determinants of consumption function, Other Determinants 1.          R...

Other Determinants 1.          Rate of Interest Is contained in the argument of the classified economists who argued that rational consumers will save more and consume les

Morris model, explain critically growth maximisation model of morris ?

explain critically growth maximisation model of morris ?

Interest rates, Interest rates Decreasing the rate of interest may...

Interest rates Decreasing the rate of interest may not encourage investment but increasing the interest rate tends to lock up liquidity in the financial system.

What is marginal cost curve, Q. What is Marginal cost curve? MC curve i...

Q. What is Marginal cost curve? MC curve is also 'U' shaped as in Figure below. Marginal cost curve falls initially but then reaches a minimum point and lastly rises. Shape of

Determine the law of demand curve, Determine the law of Demand Curve Th...

Determine the law of Demand Curve The law of demand can also be presented through a curve known as demand curve. Demand curve is a locus of points showing numerous alterative p

Definition of perfect competition, 1. Prof. Marshall 'The more nearly perfe...

1. Prof. Marshall 'The more nearly perfect a market is, the stronger is the tendency for same price to be paid for same thing at the same time in all parts of the market". 2. Pr

Burden of the national debt, Burden of the national debt The extent of...

Burden of the national debt The extent of the burden on a nation of public debt, depends in the first place on whether it is an external or an internal debt.  The burden of th

Principles, what is the full concept of discounting principles of manageria...

what is the full concept of discounting principles of managerial economics ?

Write Your Message!

Captcha
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