As a Manager in charge of pricing in an organisation, you have a deep understanding of how elasticity of demand affects your business. Give atleast 3 factors that affect elasticity of demand.
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-As a Manager in charge of pricing in an organisation, you have a deep understanding of how elasticity of
-Explain two(2) benefits of
-Patel and John are arguing on whether
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- QUESTION 12 A firm that is the sole seller of a product without close substitutes is a. perfectly competitive b. monopolistically competitive c. a monopolist d. an oligopolist(Monopolistic Competition Market) The main characteristic of the monopolistic competition market structure is product differentiation. 3A. Explain what is meant by product differentiation and what does it look like? 3B. Explain why the company does this and how? Thank you for the help Bartleby!Question 1a. With the aid of a diagram explain how a monopolist determines how muchoutput to produce and what price to charge. [4 marks]b. Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run. [4 marks]c. Explain why firms operating in monopolistically competitive markets probablywill not earn an economic profit in the long run. [4 marks]d. Why does interdependence of firms play a major role in oligopoly but not inperfect competition or monopolistic competition? [4 marks]
- V1. Welfare costs exist in a single price monopoly, and even in some markets where price discrimination exists. Explain in a few sentences why welfare cost does not exist in a monopolistic market with perfect price discrimination.Question 1a. How is monopolistic competition like monopoly, perfect competition andoligopoly? b. Give two examples of price discrimination. In each case, explain why themonopolist chooses to follow this business strategy c. Why does price equal marginal revenue for the perfectly competitive firm?What is the relationship to the demand curve for the firm?1. State the elasticity of the monopoly firm demand curve. ii. Considering the figure, examine the benefits of the characteristics of the monopoly demand curve to ABC Inc. Ltd. iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning an economic profit. Do you think ABC Inc. Ltd firm will earn profit in the long-run? Explain your answer. Assume all factors constant. iv. Examine the effects of ABC Inc. Ltd on consumers.
- COURSE: MICROECONOMICS 2 - MONOPOLY AND PRICE DISCRIMINATION TYPE 2 - PRICE PER CONSUMPTION BRACKETA monopolistic firm charges $90 for 30 units sold; $60 for units between 31 and 60 and $30 for units between 61 and 90 and $15 for units greater than 90. Consider marginal cost (MC) equal to zero. How much is firm's extraordinary profit?(a) If it sells 15 units.(b) If it sells 53 units(c) If it sells 95 units PLEASE GRAPHIC EACH CASEDraw the demand curve, marginal revenue, and marginal cost curves from Figure : , and identify the quantity of output the monopoly wishes to supply and the price it will charge. Suppose the demand for the monopoly’s product increases dramatically. Draw the new demand curve. What happens to the marginal revenue as a result of the increase in demand? What happens to the marginal cost curve? Identify the new profit-maximizing quantity and price. What do you think about the result? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Subject: Manegerial economics & policy Mcq's 14) A petroleum industry is an example of a) monopoly b) Perfect Competition c) oligopoly d) monopolistic competition 15) Which of the following is an example of natural monopoly a) vegetable markets b) clothing retail shops c) natural gas d) None of the above
- 1- What is price discrimination ? What are the necessary conditions of price discrimination ? What companies use price discrimination ?Math Problem: Suppose that a monopolist, who sells all units at a uniform price, faces an inverse market demand curve P=100- 2Q. If the firm’s total cost were instead positive, given by the function TC=10Q, what output would the firm produce to maximize profit, what price would the firm charge, and what profit would the firm earn? Give the numerical value of these three variables. Typed answer please. I ll rate1. When a monopoly advertises, the goal is to _____ because _____. Group of answer choices increase its demand as a share of market demand; the monopoly faces a significant portion of market demand increase market demand; the monopoly faces the entire market demand increase market demand; the monopoly produces a product that is identical to the output of all other sellers in the market increase its demand as a share of market demand; the monopoly faces a small portion of market demand 2. If given a choice, a person would prefer to experience the situation of which of the following families? Group of answer choices a family with income equal to the world poverty line a family with income equal to the United States poverty line a family with income double the world poverty line a family with income equal to the poverty line in the United States in 1970 3. A business using its bargaining power as a major buyer of labor to pay lower prices, including lower wages,…