explain how perfect discrimination compare against perfect competition in the industry with regards to efficiency. In an oligopolistic market with 2 firms where bertrand model explains the industry how do you think the efficiency is affected?
Q: kmarks Window Help 0 Using the graph below, if a price is set at $4, a upward pressure on the price.…
A: Equilibrium is achieved at a point where demand curve intersects supply curve. At this point,…
Q: F4
A: Entrepreneur is a person who plays significant role in changing economic and business transactions…
Q: A price elasticity of demand equal to 5 means
A: The formula for elasticity is given by: ep = [dq/dp] x [p/q] If ep > 1 then elastic demand If…
Q: An example of an agriculture commodity with particularly volatile prices is coffee. The price of…
A: Supply shock is situation where there is sudden increase or decrease in availability of goods more…
Q: Assume that a consumer has a given budget or income of $10 and that she can buy only two goods,…
A: In the mentioned question we have been asked about the slope of the budget as the given consumer…
Q: "My conclusion is that, while we know equilibrium quantity will rise, we cannot say what happens to…
A: Equilibrium is achieved at a point of intersection of demand curve and supply curve.
Q: Describe the price sensitivity you expect your customers to have based on the price elasticity for…
A: Introduction Price elasticity of demand indicates the degree of responsiveness of quantity demanded…
Q: QA-7-.5P Qa-10-P Qc=18-3P Make a price quantity chart for each consumer. Then add a column showing…
A: In perfect market competition the optimum quantity is produced where the demand curve and the supply…
Q: What amount of money invested today at 15% interest can provide the following scholarships: P 30 000…
A: The measure that depicts current stream of income flows being discounted at a specified rate of…
Q: Suppose that you inherit $10,000 and put your money into a savings account that grows at an…
A: Rate of return refers to the rate at which a certain investment gives back to the investor in the…
Q: An engineer must decide between two ways to pump concrete to the top of a seven-story building. Plan…
A: Dear student, you have asked multiple sub-part questions in a single post.In such a case, as per the…
Q: Which of the following is not a factor that could cause a shift in the demand curve for a certain…
A: Demand curve shows different levels of quantity demanded at different price levels.
Q: Fill in the blank by typing 'increase', 'decrease', 'no change', or 'uncertain'. To sure to type the…
A: In the free market, the equilibrium price and quantity is dtermined by the forces of the demand and…
Q: owing market is a duopoly populated only by the companies Alpha and Beta. They produce and sell…
A: Duopoly is a special form of the oligopoly market where only two firms exist in the market. The…
Q: b. How does the increase in the tax rate affect the optimal choice of consumption (in the current…
A: There are 2 possible cases for the given situation where increase in tax rate affect the optimal…
Q: Consider an exchange problem in which 10 units of x and 5 units of y are to be allocated between…
A: Introduction Production in Pareto efficient when it is not possible to reallocate the resources to…
Q: Everything U Want Stores is trying to decide whether to keep or drop the hardware department in its…
A: Sunk cost refers to the cost which once incurred can not be recovered. The opportunity cost is…
Q: 2. The government has decided that the free market price of cheese is too low. a. Suppose the…
A: A binding price floor happens when the public authority sets an expected cost on a decent or…
Q: -233 1636 2 5 20 15 10 0 has the comparative advantage in producing wine and who has the comparative…
A: Opportunity cost is the value of what we lose whenever we take decision between two or more…
Q: A monopolist will maximize profits by: Group of answer choices setting his price at the level that…
A: Perfectly competitive firm. A perfectly competitive firm is a price taker, which means it takes the…
Q: 6. An important routine function of the Federal Reserve Bank is to: A. supervise the liquidation of…
A: Correct answer is option D
Q: Think of a consumer who has a 200 000 euros income and can spend them on an opera, paying a price of…
A: The budget constraint defines the limits of the opportunity set, which includes every potential…
Q: For each of the following, indicate whether the statement is True, False, or Uncertain, and explain…
A: 1. In the exchange problem, it is inefficient to give everything to one person. The statement above…
Q: We often use the SRAS/AD model to describe which of the following? short run economic…
A: SRAS/AD model comprises of a downward slanting aggregate demand curve "AD" and an upward inclining…
Q: Fill in the blanks by typing 'at most', 'at least', or 'equal to'. To receive credit, make sure to…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Suppose the consumption function is given by C(Y)=60+0.8(Y-T) where Y represents output and T stands…
A: Given Information: Consumption function = C(Y)=60+0.8(Y-T) Investment ( I ) = 400 level of…
Q: An increase in disposable income worsens the current account because: O A. consumers demand more of…
A: Disposable income, otherwise called dispensable individual pay (DPI), is how much cash that an…
Q: The economy of Eastlandia in 2021: . C=2870+ 0.5YD P = 1360 T = TR = G = NX = 0 . The equilibrium…
A: GDP can be calculated using the following formula: GDP(Y) = Consumption(C) + Investment(I) +…
Q: Aji Fatou owns a rental space in New York and is thinking of opening a restaurant in that space. The…
A: Accounting profit refers to the net income for a corporation or sales less costs. You may calculate…
Q: Exhibit: IS-LM to Aggregate Demand Interest rate, r LM₁ (P = P₁, M = M₁) LM₂ (P = P₂, M = M₂) LM₂ (P…
A: "In macroeconomics, LM curve depicts the combinations of income/output Y and interest rate r which…
Q: 1)"Gasoline prices have increased greatly during the past year. Using economic concepts from class,…
A: Gasoline has an inelastic demand even when the price rises there is less impact on the demand for…
Q: Initial Investment Estimated Life Salvage Value Annual Income Annual Expense $50,000 15 $15,000…
A: Given value: Initial Investment for model 334 A = $80000 Estimated life = 30 years Salvage value =…
Q: A well-functioning financial system does all of these EXCEPT: a. foster economic growth by…
A: The objective of the financial system is to manage the availability of funds in the market. This not…
Q: a) Based on Capital Bank's T-account above, calculate. (i) The central bank's required reserve…
A: HI! Thanks for the question but as per the guidelines, we answer only up to three sub-parts at a…
Q: Beginning at long-run equilibrium in the dynamic model of aggregate demand and aggregate supply, if…
A: The dynamic aggregate supply and dynamic aggregate demand model is based on the aggregate supply and…
Q: Q.3.3 Explain the steps of the motivation process and how it applied to John.
A: Motivation: It is a process where people behave in a way that helps the business to achieve its…
Q: TRUE OR FALSE? An increase in price tends to make consumer buy less and sellers to sell more. A…
A: The economic theory of supply and demand seeks to explain the link that exists between the…
Q: Which of the following would be strategies to increse productivity Invest in accumulating more…
A: Productivity refers to output produced per unit of worker.
Q: When the money market is drawn with the value of money on the vertical axis, an increase in the…
A: The money market is a financial market where institutions and dealers can trade open-ended funds and…
Q: A primary reason a country would put restrictions on its own currency is to Select one: a. encourage…
A: Exchange rate is the rate at which the nation's currency is exchanged in foreign exchange rate and…
Q: fight kistrates the trade-offs facing Ford Motor Company. The me in the graph is Ford's production…
A: A production possibility curve depicts the combination of two goods that can be produced by using…
Q: What happens to the graph of a budget constraint if there is a 10% increase in prices, and wages…
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Chester’s a local butchery expects to sell 419 675 kilograms of meat for the year 2022. Carrying…
A: given expects to sell meat for the year 2022 = 419 675 kilograms, which is equal to annual demand…
Q: a) Draw a correctly labeled graph for a monopoly and show each of the following. (i) The…
A: Monopoly refers to the market structure where only single firm exists in the entire market. Monopoly…
Q: 6. An important routine function of the Federal Reserve Bank is to: A. supervise the liquidation of…
A: central bank is the apex bank of any country and in USA federal bank is the central bank. it…
Q: Name Three public policies and how do they contribute to economic growth?
A: Increased output of products and services is referred to as economic growth. Economic growth can be…
Q: 6. Which of the ollowing s a liability on a bank's balance sheet? a. a certificate of deposit b.…
A: Bank assets allude to the things possessed by a bank that assistance to bring esteem. Bank assets…
Q: Consumers would buy more cars, houses and other "big ticket" items that are usually bought "on…
A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you. If…
Q: The Boeing Commercial Airline Group (BCAG) recently recorded orders for more than 15,000 jetliners…
A: The marginal product of an info, say labor, is characterized as the additional result that outcomes…
Q: 12
A: Economic growth refers to the increase in the real value of total output generated by an economy…
1. explain how perfect discrimination compare against
Step by step
Solved in 2 steps
- (a) There are two companies in the world that produce large passenger aircraft, Boeing, and Airbus. How would you characterize the market for large passenger aircraft, monopoly, perfectly competitive, monopolistically competitive or Oligopoly? Please explain. Large passenger aircraft are defined as aircraft than can carry more than 150 passengers. (b) The market for telephone services has become more competitive over time with the advancement of technology in the industry. Technology in the aircraft manufacturing industry has also advanced significantly. Why hasn’t this improvement in technology led to an increase in competition (Boeing and Airbus have been the only manufacturers in this industry for many years)? Please explain.3. Explain why Oligopolistic market decisions are more difficult compare to other market structures? Use a local example to support your explanation.1. 90%>CR4>60%. a. effective monopoly b. effective competitive c. tight oligopoly d. loose oligopoly 2. An oligopolistic firm having lower costs than the other firms sets a lower price which the other firms have to follow. a. barometric price leadership b. stackelberg oligopoly c. price leadership by a low-cot firm d. price leadership by dominant firm 3. It means that one firm possesses a dominant market share and acts as a leader by setting price for the industry. a. barometric price leadership b. dominant firm c. price leadership d. none of the above
- Question 3 “In the meat market in US, there are 4 major meat corporations which have been accused of conspiracy to raise meat prices. After a four-year legal battle, it’s unclear whether court settlements will discourage future collusion.” a) What is the market structure described above? Discuss THREE (3) characteristics of this market structure. b) Explain the meaning of collusion. What are its implications to the industry? Is collusion permitted in most countries? c) State ONE (1) advantage and ONE (1) disadvantage of this market structure.Question 1 (40 points) Consider a homogeneous duopoly market where two firms compete in prices. Demand is given by D 8-2p, where p is price. Marginal cost of production is 2. a)lf the individual capacity of both firms is 2, is there an equilibrium in pure strategies? If so, what are the equilibrium prices? If not, provide a proof. b) Consider then that a third firm enters the market and that all three firms have a capacity of 2. Does an equilibrium in pure strategies exist? If so, what are the equilibrium prices? If not, why not? c) Does you answer under b) change if the firms' capacities are respectively equal to 1, 2 and 3?.1. What are the 5 characteristics of perfect competition? 2. Define the followings? A. Monopoly B. Oligopoly C. Duopoly D. Perfect competition E. Knockoffs 3. What is a Resource Market? 4. What are the 4 types of resources in economics and define each? 5. What is an example of game theory in economics? 6. If you are the manager/owner of the company, what will you do to solve the negative effect of perfect competition?
- Explain how Oligopolists are interdependent. Give any example of your choice from different industries around the world.Question 1 Assume the market for a product can be described as a Cournot duopoly with two identical firms. The Nash-equilibrium in this market is that the two firms produce the same quantity. Hence, they will have identical market shares, each will have 50%. Assume that firm 1 decides to invest in a technology that reduces its marginal costs. a) What will happen to the two firms market shares? You must explain how you find the answer. b) What will happen to total production and the price of the product? Again, explain your answer.There are two groups of firms below. Group 1: firms in the retail sector (e.g. Amazon; Wal-Mart; Target; Kohl's; Sears; Macy's) Group 2: firms in the wireless services industry (e.g. Verizon; AT & T; Sprint/T-Mobile) (this about telecommunication services, not about the sale of phones) For each group determine and explain if the group is monopolistic competitive or an oligopoly. You need to specific for both in which market structure the firms operate) Then choose one of the firms from one group. Using a Porter's analysis what are the threat to profitability?
- Using words, not diagrams or equations, explain how a Stackelberg industry leader differs from a Cournot Oligopolist. Specifically, explain why a Stackelberg leader can earn higher profits and control a larger share of the market. Finally, identify a company that you think may have the ability to be a Stackelberg leader in its industry.E1 Find Bertrand equilibrium and its outputs for the following asymmetric duopoly:q 1(p1, p2) = 16 - p1 + 0.5 p2, C1(q1) = 4q1;q 2(p1, p2) = 16 + 0.5 p1 - p2, C2(q2) = 6q2.(Note that the average and marginal costs are: AC1=MC1 = c1 = 4, AC2=MC2 = c2 = 6)Economics 1) How many buyers are there in a perfectly competitive market?A) FewB) TwoC) ManyD) One2) A market in which there are many buyers and sellers, every firm sells the same standardized product, buyers and sellers have full information about the product and its price, and it is easy for firms to enter and exit the market is known as _____ market.A) monopolyB) oligopolyC) duopolyD) a perfectly competitive3) Which of the following is NOT a reason that firms in a perfectly competitive market are price takers?A) There are many firms that a buyer can choose from.B) Each firm can sell more of its goods at a lower price than at the market price.C) Each buyer has perfect information about all alternatives.D) Each firm's good is a perfect substitute for another firm's good.