All economic market structures earn normal profit and are considered to be in the long run when Question 19 options: a) Price equals marginal cost b) Price equals average total cost c) Price equals marginal revenue d) Price equals average revenue
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- For the same demand and cost conditions, which of the following is true? Group of answer choices Consumer surplus and producer surplus are both lesser in a monopoly market compared to perfect competition. Consumer surplus is lesser but producer surplus is greater in a monopoly market compared to perfect competition. Consumer surplus is greater and producer surplus is lesser in a monopoly market compared to perfect competition. Consumer surplus and producer surplus are both greater in perfect competition than in a monopoly.A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) How much will the dominant firm supply to the market at the price found in question (a)? Show the answers graphicallyConsider a competitive industry with a market demand curve of P = 252 - Q, where P is market price and Q is the quantity demanded in the market. Each firm in the industry has a cost function of TC = 196 + q^2, if q > 0 where q is output of the individual firm (TC = 0 if q = 0). The market is initially in long-run equilibrium. The government decides to regulate the industry by issuing licences to all firms currently in the industry. and not to allow any further entry by other firms without a licence. That is, the number of licences is fixed, and entry requires that an existing licence holder sells their licence to the potential entrant, leaving the number of firms producing in the industry fixed. Subsequent to the introduction of this regulation, the market demand curve shifts to P = 432 - Q. What is the value of the licence?
- Brand X is one of many firms in a competitive industry where each firm has a constant marginal cost of 2 dollars per unit of output. If marginal cost for Brand X rises to 4 dollars per unit and marginal costs of all other firms in the industry stay constant, by how much does the price in the industry increase? a. 2 dollars b. 1 dollar c. 0 dollar d. 2/n, where n is the number of firms in the industry e. None of the above.Consider a competitive industry with a market demand curve of P = 252 – Q, where P is market price and Q is the quantity demanded in the market. Each firm in the industry has a cost function of TC = 196 + q2, if q > 0 where q is output of the individual firm (TC = 0 if q = 0). The market is initially in long-run equilibrium. The government decides to regulate the industry by issuing licences to all firms currently in the industry, and not to allow any further entry by other firms without a licence. That is, the number of licences is fixed, and entry requires that an existing licence holder sells their licence to the potential entrant, leaving the number of firms producing in the industry fixed. Subsequent to the introduction of this regulation, the market demand curve shifts to P = 432 – Q. What is the value of the licence?Which of the following do not qualify as potential driving forces capable of inducing fundamental changes in industry and competitive conditions? 1.Reductions in both supplier and buyer bargaining power and higher barriers to entry into the industry 2. Reductions in uncertainty and business risk, changes in who buys the product and how they use it, and diffusion of technical know-how across more companies and more countries 3. Changes in an industry's long-term growth rate and changes in cost and efficiency 4. Entry or exit of major firms, government policy changes and/or regulatory influences 5. Growing buyer preferences for a more standardized product instead of strongly differentiated products (or for a more differentiated product instead of nearly identical or weakly differentiated products.
- A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) How much will the competitive fringe supply to the market at the price found in question (a)? Show the answers graphically.(Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd b. What is the equilibrium price and the equilibrium quantity for the dominant firm? Show your answer mathematically and graphically. c. In that equilibrium, what is the supply of competitive fringes? How many total products are there on the market? What is the market share of the dominant company and the fringe company? Show your answer mathematically and graphically Thank you Bartleby!(Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd a. What is the minimum price level required by the competitive fringe to offer output? At what price level will the fringe company supply the entire market? Thank you bartleby!
- (Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd d. If the dominant company wants to limit competition from fringes, what can the dominant company do? What is the name of this strategy?Limiting Market Power: Regulation and Anti-Trust Predatory pricing threatens to keep competitors out of the market. It is a price that is so low that it will be profitable for the firm that adopts it only if a rival is driven out of the market. Debate why predatory pricing is an economic inefficiency in a perfectly competitive.QUESTION 47 Cartels are unstable due to all of the following factors except which one? incentive for each firm to serve as the whistle-blower entry of new firms into the market trade groups incentive to act in self-interest QUESTION 48 Under the merger guidelines written by the DOJ and FTC a merger may not be challenge if: There is significant foreign competition The firms involved have monetary problems There is an emergence of new technology All of the statements associated with this question are correct QUESTION 49 The existence of any consumer surplus in the market suggests that all of the following practices are possible in the market except which one? first-degree price discrimination a single price is charged to all consumers second-degree price discrimination third-degree price discrimination QUESTION 50 In peak-load pricing, the short-run marginal cost is equal to the marginal cost of providing capacity. True False.