MC MC, P* Q MR Given the cost-revenue diagram for one oligopoly firm above; match this firm's price decision to its circumstances. Lower price below P [Choose ) Charge the price P (Choose ] Raise price above P [Choose) %24
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A: Given, An oligopolistic firm operating under Oligopoly faces the following demand curves for a price…
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A: it is TRUE
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A: Market demand = 12000 – 5P 5P = 12000 – Q d And Q d = qA + qB 5 P = 12000 – qA – qB P = 2400 – 0.2qA…
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A: please find the answer below.
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A: P=50-Q =50-Q1-Q2TR1=(50-Q1-Q2)Q1 =50Q1-Q12-Q1Q2MR1=50-2Q1-Q2C=10+Q2MC1=2Q1Now, for…
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A: We have to found following question.
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- A small business owner analyzes how changes in the price of raw materials will affect the company's production costs and output levels. This scenario highlights the importance of understanding:A) Consumer preferencesB) The law of diminishing returnsC) Market demandD) Oligopoly behavior Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.Though Pepsi Company is a giant in the soft drinks industry, it faces tough competition in the market as there are many firms operating in this industry with differentiated products. Further, the company is spending a considerable amount as selling cost in order to increase its market share in the industry. Determine in which type of market structure the Pepsi Company is operating? a. Monopoly market b. Monopolistic competition c. Perfect competition d. Oligopoly market(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.
- ANS ME ! 1 In a completely serious market, the interaction of section or leave closes when a. Firms are working with abundance limit. b. Firms are making zero monetary benefit. c. Firms experience diminishing minimal income. d. Cost is equivalent to minor expense. 2. Harmony amounts in business sectors described by oligopoly is a. Lower than in imposing business model business sectors and higher than in completely serious markets. b. Lower than in imposing business model business sectors and lower than in completely serious markets. c. Higher than in imposing business model business sectors and higher than in completely serious markets.Question: Which of the following market structures is characterized by a large number of firms, homogeneous products, free entry and exit, and perfect information? a) Monopoly b) Oligopoly c) Monopolistic competition d) Perfect competition Please give me correct answer and full explanation. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Two firms engage in Cournot competition in the Everlasting Gobstopper industry. The price elasticity of demand is-2. Firm 1 has aconstant marginal cost of $110.00 per unit, and firm 2 has a constant marginal cost of $181.50 per unit. If the two firms are currently inequilibrium, what is firm 2's share of the market? Enter your answer as a decimal, rounded to two places if necessary.______ Please show all steps
- In relation to degree of concentration, CR4<40%? a. tight oligopoly b. effective competitive c. effective monopoly d. loose oligopolyIn which market structure does Johnson Electronics (Pty) Ltd operate? Provide areason for your answer and what level of output maximizes the firm’s profit? Provide the reason for youranswer output price total revenue average cost total cost margnial cost profit/ loss 10 10.00 100 20.80 208 0 -108 20 10.00 200 12.40 248 4.00 -48 30 10.00 300 9.90 297 5.00 3 40 10.00 400 9.00 360 6.20 40 50 10.00 500 8.80 440 8.00 60 60 10.00 600 9.00 540 10.00 601.In differentiated oligopoly,the elasticity of individual market demand is smaller than in the case of pure oligopoly.Explain this statement in not more three sentences 2.As a prospective production manager of an agribusiness firm whose average variable cost of production is greater than the price per unit of its product in a competitive market indicate ,in not more than four sentences, how would you advice management concerning the operations of the firm 3.Assuming you are the production Economist in a farm firm whose elasticity of production is negative indicate,in not more than 3 sentences, how would you advice management concerning the operations of the firm
- Practice Problem 1: Two firms produce homogeneous goods with constant marginal costs c = 2. The market demand in each period is P(Q) =10 - Q where Q is output. (a) Compute Cournot (quantity competition) profits in this market (for which you need to compute output and prices, of course).(b) Compute the monopoly profit in this market. That is, what a firm with the same cost function would make if it were the only one in the market (and what a cartel of the two firms would decide to produce in this market).(c) Suppose that one firm produces half the output that you computed in (b). Compute the best response of the other firm, and explain why in one period an agreement between the two firms to produce each half the monopoly output (and so get half the monopoly profit) would not be honored..Reflection Journal for B220 Microeconomics Lesson 11: With reference to the graph above, a. Explain clearly the profit maximising decision by the above oligopoly. Calculate and shade the profit and total cost clearly. b. Unlike a monopoly, in an oligopolistic market structure, there will be efficient allocation of resources. Discuss by using appropriate graphical analysis and concepts covered today.Critical Thinking In many oligopolistic industries, firmsfollow a price leadership strategy, in which an accepted industry leader sets, raises, or lowers prices and theother firms follow. In what ways is this policy good andbad for the industry? In what ways is this good or badfor consumers? Whal is the difference between priceleadership and price fixing? Should governments al- low industries 10 use price leadership strategies? If not,how can they prevent it?