Q: What is market integration?
A: Economics as a subject was developed since there was a limited amount of resources on earth.…
Q: See the graph below, Label and Describe in terms of : A. Name of Market Structure B. Ability to…
A: Anser is given below
Q: Why might a service business be more selective than a goods-producingbusiness regarding the…
A: Supply is the relationship between the price of a commodity and the the goods and services to be…
Q: Suppose Sam sells apples, picked from his apple tree, in a competitive market. Assume all apples are…
A: a) Marginal cost is expanding/increasing as an ever-increasing number of variable input sources are…
Q: Competition determines market price because the more that toy is in demand (which is the competition…
A: When demand increases,supply remaining same. Equilibrium price increases.
Q: The marginal cost of admitting an additional fan to watch the Sacramento Kings play basketball is…
A: The concept of marginal cost comes out of the topic of total cost which is given by the sum of…
Q: What is then the use or relevance of the purely competitive model?
A: Pure competition is a market system in which multiple firms compete for the same clients. The best…
Q: Consider a market with free entry and exit where all firms are identical and have the following TVC…
A: A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and…
Q: In which market structure there is a single seller?
A: There are various structure of market it includes perfect competition, Monopoly, Monopolistic…
Q: How is non-price competition different from price competition?
A: There are two ways producers can compete (with their aim being profit maximization). They are: Price…
Q: Competition between firms results in: a. Lower prices b. Greater output c. Less deadweight loss d. a…
A: When there are multiple businesses in a market, competition develops. The perfectly competitive…
Q: All buyers in a perfectly competitive market set prices to compete in their market? is it true or…
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: When is allocative efficiency met in a perfectly competitive market? when price equals average cost…
A: When talking about allocative efficiency, it is the market situation when a market is producing a…
Q: How would a decrease in demand for commercial air travel in an oglipolistic market effect the…
A: "Commercial air travel' can be distinguished as a structure of an oligopoly market in which a…
Q: Discuss how the presence of middlemen affects the operation of competitive markets.
A: In a competitive market, neither a single customer nor a single manufacturer can have a significant…
Q: Suppose we have a perfectly competitive market that is efficient. Which of the following, when…
A: Perfect competition is theoretically a monopoly that allows a company to charge any price, as only…
Q: A firm will realize the highest level of profit if it is able to engage
A: The monopoly would result in the single seller and many buyers in the market. The monopoly would…
Q: Which of the following is NOT one of the five forces that determine the structure of competition in…
A: The market structure depends on what kind of good is produced, number of firms and buyers and entry…
Q: Allocative efficiency is an economic concept regarding efficiency at the social or societal level.…
A: Here answer is “Has no motivation to operate at an output level where P=MC, once a barrier is in…
Q: Is it bad for consumers if a large corporation drives down prices to eliminate competition? Explain
A: A situation when two or more rival companies lower the prices of a similar product with the aim to…
Q: Considering we are at equilibirum in a perfectly competitive firm with no externalities Do sellers…
A: Negative externality refers to the situation where the third party who does not involve in the…
Q: Suppose in a small town called Utopia live 200 children and 300 adults. The only entertainment in…
A: Meaning of Fixed Cost and Total Revenue and Marginal Cost: Fixed costs are the cost which remains…
Q: In which form of the market structure is the degree of control over the price of its product by a…
A: To find : Degree of control over the price of the product by firm.
Q: How does market power or monopoly subvert the coordinating function of market prices?
A: A market situation in which there is a single seller of a commodity for which there are no…
Q: how do sunk costs create a barrier to entry into the market place?
A: Barriers to entry denote the fixed costs that exist in those market structures and industries in…
Q: View the video at the link below and share your thoughts on the economic concepts that you believe…
A: Yes it is TRUE that in order to raise prices a firm has to possess market power as the market forces…
Q: If the producers of rice wants to maximize profit up to what level of output will it produce and at…
A: The allocative efficiency could be achieved by equating marginal private cost with marginal private…
Q: Does a market equilibrium exist in an oglipolistic market? If so, how is it determined?
A: Equilibrium exists in all the markets. Therefore it would exist in oligopolistic market.
Q: What are the main characteristics of a competitivemarket?
A: A perfectly competitive market is the one, where there are a large number of firms selling…
Q: Imagine a scenario in which the fashion industry is suffering from monopolistic price gouging and a…
A: Sweatshops are the factories or production area of the clothing industry where the laborers are…
Q: How applicable is this assumption of market clearing to the market for fast food meals in the short…
A: Economists use various assumptions at the time of developing a model or theory. Such assumptions…
Q: Choose the one alternative that best that answers the question. Assume the market for organic…
A: As the market is perfectly competitive, it means that they cannot influence the market as they are…
Q: Is a firm that satisfies the immediate needs and wants of target markets always doing what’s best…
A: Consumer: It refers to the people who buy goods and services from the market. The producer will be…
Q: What role does the U.S. government play with respect to market competition? a.) It preserves…
A: Correct : c.) It polices anticompetitive behavior and prohibits contracts that restrict competition.
Q: Only one firm able to produce profitably in a market given demand and costs describes a ____?
A: A monopoly market's features enable the sole seller both the market operator and the value creator.
Q: Distinguish between technical efficiency and economic efficiency
A: Technical efficiency is the situation where the output is increases by using the less factors of…
Q: When the typical seller in a market has economic profits, then:
A: Profits are the excess of revenue receipts over the costs incurred by a firm in the production of…
Q: Evaluate and explain the following statement: The market system is a profit-and-loss system.
A: ‘Market’ refers to a place where goods are bought & sold. The goods are bought & sold at…
Q: What form of competition best characterizes this market? What characteristics did you identify that…
A: Monopolistic competition: The salient feature of monopolistic competitive market is product…
Q: perfectly competitive market?
A: Perfectly competitive market is the ideal market where buyers and sellers all have perfect complete…
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- a) True or False and Explain: A profit maximizing monopolist has no limit to how high they set the price. b) True of False and explain: When there are economies of scale in production it is possible for a competitive market to sustain the competitive equilibrium. c) When there are economies of scale in production, why is it beneficial to have only one producer?How sustainable is any competitive advantage for Upscale Markets? If some giants such as Amazon or Walmart enter the e-market. groceryFirms can choose a location in the linear city of length 1 with fixed cost of 25. Consumer density at any location x in the linear city is 400. a) Show that a firm each at 0.125, 0.375, 0.625 and 0. 875 is not an equilibrium. b) What is the equilibrium number of firms and th6ir locations? c) Illustrate how entry is no longer profitable at equilibrium? Plz do fast
- Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market for this case was the market for intercity bus service. Another possible definition was the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.' Which definition do you think the bus companies preferred, and why?May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural Monoploy
- According to Professor Kosmos, the demand for hot chocolate from the university café has the schedule QD = 2500 – 135p, where p is the price. The owner of the café says that their supply schedule is QS = 1600 + 315p. i) Identify the café’s daily profit maximising price and quantity. ii) When a new hot chocolate machine is installed, the Professor finds that the supply schedule has changed to QS = 1625 + 365p. What are the café’s new daily profit maximising price and quantity? iii) Find the price elasticity of demand for the café’s hot chocolate and comment on the result.Suppose a museum charges different entrancefees for children, students, adults, and seniors, butthese groups all pay the same amount for souvenirs at the gift shop. Explain why the museum pricediscriminates on admission but not souvenirs.You have conducted a study to determine if there is independence or dependence between market segments (A-C) and prices the segments are willing to pay for a product. The following cross tabular output appears. Under $10 $11-$15 over $15 All A 50 30 20 100 50.00 30.00 20.00 33.33 27.27 50.00 16.67 10.00 6.67 50.00 36.67 13.33 0.000 1.212 3.333 B 40 50 10 100 40.00 50.00 10.00 26.67 45.45 25.00 13.33 16.67 3.33 50.00 36.67 13.33 2.000 4.848 0.833 C 60 30 10 100 60.00 30.00 10.00 40.00 27.27 25.00 20.00 10.00 3.33 50.00 36.67 13.33 2.000 1.212 0.833 All 150 110 40 300…
- Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?perfectly competitve firms respond to changing market conditions by varying their (choose 1 below) 1-price 2-output 3-market share 4-informationFood prices in sports stadiums are notoriously high because there is a limit on the numberof vendors that can operate in the stadium, which is a barrier to entry. In 2017, the AtlantaFalcons, an American football team, lowered the barriers to entry by allowing more foodvendors into their stadium. If the market for food in the stadium follows our perfect marketassumptions, what might you expect happened after this change? Do not worry about theunderlying facts of each statement, only whether it makes economic sense given our model.(Select one or more.)(a) The price of food in the stadium decreased because of an increase in supply.(b) The price of food in the stadium decreased because of an increase in demand.(c) The quantity of food sold decreased because of a movement of the supply curve.(d) The quantity of food sold increased because of a movement along the demand curve.(e) Profit per vendor decreased because of lower food prices.(f) Profit per vendor increased because of greater…