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Employ the production cost theory to explain why we consider the Fruit & VegetableMarket
in Al-Aweer to have a
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- Pindyck & Rubinfeld, 8e. Ch 8 #10. Suppose that you are given the following information about a particular industry: Q D = 6500 − 100P Q S = 1200P C(q) = 722 + q 2 200 MC(q) = 2q 200 Assume that all rms are identical and that the market is characterized by perfect competition. (a) Find the equilibrium price, the equilibrium quantity, the output supplied by the rm, and the prot of each rm. (b) Would you expect to see entry into or exit from the industry in the long run? Explain. What eect will entry or exit have on market equilibrium?DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.a) For each price, find the total revenue, the total cost, and the profit.b) If the market was under perfect competition, what would be the price and the quantity ofpencils traded in the long run? Why?c) If there was only one seller on the market, what would be the price and the quantity ofpencils traded? Why?DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.a) For each price, find the total revenue, the total cost, and the profit.b) If the market was under perfect competition, what would be the price and the quantity ofpencils traded in the long run? Why?c) If there was only one seller on the market, what would be the price and the quantity ofpencils traded? Why?d) If there were two firms on the market and they agreed to cooperate, how much would eachfirm need to produce? Follow the procedure outlined in the lecture and show that the otherfirm would prefer to deviate from the agreement.e) When the firms deviate from the agreement, there is a new optimal level of output. Showwhether the firms have an incentive to deviate from that level?f) If there were two firms on the market, what would be the price and the…
- Explain what is meant by a perfect competitor has no market power as applied to power system economics.How can I describe the equilibrium situation of the firm operating in the perfectly competitive market and the firm operating in the monopoly market by drawing graphics, and at the same time, how can I explain the cost, revenue and demand structures with graphics? b210801021@subu.edu.tr You can send a reply to this address. If it can be in Turkish, I would be happy, but if it is not, it is not a problem.A perfectly competitive industry is composed of 100 identical firms with cost structure: q TC VC FC AVC ATC MC 0 4 1 8 2 10 3 14 4 20 5 28 6 38 b) Assuming that the market price is p = 8, what are the quantity produced by each firm and the profit it makes?
- Inverse Demand Equation: P = 170 - 4Qd Marginal Costs=\$10; MR = 170 - 8Qd A perfectly -competitive firm would charge a price of: a . $ 20 b. $10 . c.$100 d. 0Discuss whether the profit-maximizing condition (i.e., output level where MR = MC) is true only for perfect competition. Discuss the particular condition that makes perfect competition a special case among the different market structures discussed in class.Discuss briefly why competition exists in the industry? Give atleast Five reasons.
- Pindyck & Rubinfeld, 8e. Ch 8 #10. Suppose that you are given the following information about a particular industry: Q D = 6500 − 100P Q S = 1200P C(q) = 722 + q 2 200 MC(q) = 2q 200 Assume that all rms are identical and that the market is characterized by perfect competition. (c) What is the lowest price at which each rm would sell its output in the long run? Is prot positive, negative, or zero at this price? Explain. (d) What is the lowest price at which each rm would sell its output in the short run? Is prot positive, negative, or zero at this price? Explain.Explain the three important points of factor pricing under imperfect competitionThe graph below shows a competitive firm's demand and cost curves. Assume that the firm produces at the profit-maximizing output level. What is the firm's profit? [Recall that in perfect competition a firm’s demand curve is a horizontal line drawn at the market price level and that P=MR=D.] Group of answer choices $144 $720 $576