A firm in a purely competitive market structure calculates profit using the following equation: Group of answer choices Profit = total revenue divided by output Profit = price times quantity sold Profit = average total cost Profit = total revenue – total cost
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- The profit maximizing condition for a purely competitive firm is when... Group of answer choices Price > average total costs Price < average total costs Price elasticity of demand is positive. Price = average total costsDiscuss to what extent you agree with the following statements. Firms facing loss in short run may continue to produce in a competitive market structure.Question 5 Profit-maximizing firms enter a competitive market when existing firms in that market have Group of answer choices total revenues that are just above fixed costs. market price between average variable cost and average total cost average total costs that exceed average revenue. average total costs less than market price.
- Based on the information in the table below, determine what quantity this firm should produce to maximize its profit. Quantity Marginal Cost Average Total Cost P=Marginal Revenue Total Cost 0 $ 100 1 $ 200 $ 300 $ 200 $ 300 2 $ 100 $ 200 $ 200 $ 400 3 $ 70 $ 157 $ 200 $ 470 4 $ 100 $ 143 $ 200 $ 570 5 $ 142 $ 142 $ 200 $ 712 6 $ 200 $ 152 $ 200 $ 912 7 $ 270 $ 169 $ 200 $ 1,182 8 $ 318 $ 188 $ 200 $ 1,500 Group of answer choiceswhich of the following is not among porter's competitive forces? changing consumer tastes power of buyers threat of new entrants power of suppliersIn a perfectly competitive market, the price of the product is_____ Group of answer choices jointly set after a meeting of all firms in the market independently set by each competing firm set by market supply and demand set by the market leader and then copied by other firms
- Business Economy Q1. Telecommunication (broadband) in Singapore, comparing each film (Singtel vs M1 vs Starhub vs others):Discuss the Structure-Conduct-Performance paradigm – how Market Structure (number of firms competing in an industry, relative size of firms (concentration), demand conditions (price elasticity of demand) and ease of firm exit or entry) of an industry affects the Conduct of firms (how individual firms behave in the market and involves pricing decisions and advertising decisions) and results in the firm’s Performance (profits and social welfare).Dell and Sony compete primarily by price. Each firm must choose either a high price or a low price simultaneously. Use the following information to create the profit matrix: If Dell and Sony both set high prices, Dell’s profit is $40 million and Sony’s profit is $35 million. If Dell sets high price and Sony sets low price, Dell’s profit is $25 million and Sony’s profit is $40 million. If Dell sets low price and Sony sets high price, Dell’s profit is $50 million and Sony’s profit is $10 million. If Dell and Sony set low prices, Dell has $20 million and Sony has $15 million. Please answer the following questions: Does Sony have a dominant strategy? Dell? If so, which one? If Dell and Sony maximize their profits non-cooperatively, what is the Nash-equilibrium for this profit matrix? Instead, if Dell and Sony maximize their joint profits cooperatively, what is the equilibrium? Assume they keep their agreements.Dell and Sony compete primarily by price. Each firm must choose either a high price or a low price simultaneously. Use the following information to create the profit matrix: If Dell and Sony both set high prices, Dell’s profit is $40 million and Sony’s profit is $35 million. If Dell sets high price and Sony sets low price, Dell’s profit is $25 million and Sony’s profit is $40 million. If Dell sets low price and Sony sets high price, Dell’s profit is $50 million and Sony’s profit is $10 million. If Dell and Sony set low prices, Dell has $20 million and Sony has $15 million. Please answer the follow questions: Does Sony have a dominant strategy? Dell? If so, which one? If Dell and Sony maximize their profits non-cooperatively, what is the Nash-equilibrium for this profit matrix? Instead, if Dell and Sony maximize their joint profits cooperatively, what is the equilibrium? Assume they keep their agreements.
- How do firms that compete in four different markets structures determine profitabilityPretend that you are working for Del Monte in the area of canned vegetables and that Del Monte has a system that uses data analytics. One of your major competitors is Green Giant vegetables. You are particularly interested in analyzing canned green beans. A portion of Del Monte’s data analytic system contains the following variables: Sales of various can sizes; prices of various sized cans; types of stores where green beans are sold; shelf locations of green beans in various types of stores; various promotions pertaining to green beans. Also assume that this analytic system also has this information for Green Giant beans. Explain for what types of decisions could this system be used concerning Del Monte’s Green Beans. Also address the possibility of competitive analyses pertaining to Green Giant Beans.Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote Market Structure P Q R S Characteristics of Market Structures Influence over Price Some Extensive None Limited Number of Firms in Industry Few One Many Many Perfect Competition What market structure does the letter "S" in the table represent? Monopolistic Competition O Oligopoly O Monopoly D Question 20 Entry into Market Difficult O special interest lobbies Almost Impossible Easy Easy negative externalities. The private market will not provide enough of a pure public good because of public choice not to produce the good (