Name four major difference conditions of the market model termed perfect or pure competition. Explain their major implications for the behavior of the firm. Briefly for managerial economics class
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14. Name four major difference conditions of the market model termed perfect or pure competition. Explain their major implications for the behavior of the firm. Briefly
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- 12. What are the various barrios to entry into an industry? for managerial economics class10, Name three main ways by which a firm might differentiate its product through nonprice competition. Briefly for managerial economics classExplain whether the statement is valid on not. There are perfect knowledge among the buyers and sellers in a perfectly competitive market
- 11. The graph below shows the marginal revenue, marginal cost, and average total cost at different quantities for a firm in a perfectly competitive market. If this firm chooses to produce no output in the short run, what must the market price be? A-Below $20 $21-$30 $31-$40 $41-$50 Above $50 7. firm's implicit costs are $10,000, explicit costs are $5,000, and its total revenue is $10,000. This firm is earning A-normal accounting profit B-positive accounting profit of $5,000 C-positive economic profit of $5,000 D-normal economic profit E-negative accounting profit of $5,000[TRUE / FALSE] Please explain In the real-world, marginal cost curve is usually U-shaped.Therefore, in a perfectly competitive market, a firm can maximize profit at two different output levels in the short-run2. A firm's product sells for $4 per unit in a highly competitive market. The firm produces output using capital (which it rents at $25 per hour) and labor (which is paid a wage of $30 per hour under a contract for 20 hours of labor services). Complete the following table and use that information to answer these questions:a. Identify the fixed and variable inputs.b. What are the firm's fixed costs?c. What is the variable cost of producing 475 units of output?d. How many units of the variable input should be used to maximize profits?e. What are the maximum profits this firm can earn?f. Over what range of the variable input usage do increase marginal returns exist?8. Over what range of the variable input usage do decreasing marginal returns exist?h. Over what range of input usage do negative marginal returns exist?
- (MANAGERIAL ECONOMICS) Show algebraic solution please Assume that B = -Q 2 + 4,500Q and C= 2Q 2 are the benefits and costs of increasing the units of X-brand energy drink (in a 500 ml bottle). A. What is the profit function of X-brand energy drink production?Suppose that you are one of rubber producers (sellers) in the perfectly competitive market in Thailand. Make it simple: suppose there are two types of used inputs consisting of land and workers. Assume that, in short-run production, you operate on a fixed size of a land and the cost of renting the land is 2 Baht per day. The table (A) below shows the relationship between the quantity of rubber produced by your company per day and costs of workers per day. The goal of your firm is to maximize (minimize) profits (losses).Table (A) The Quantity of rubber (units) produced per day Costs of workers per day in baht ATC AVC MC 0 0 1 5 2 9 3 12 4 14 5 15 6 18 7 22 8 27 9 33 10 40 Answer the following questions 1. Filling in Table (A) above for ATC, AVC and MC from 0 to 10 units. 2. Using economics analysis, suppose the market price of the rubber in Thailand is 3.5 Baht per unit, how…Multiple choice - microeconomics 39) A profit-maximizing firm in a competitive market produces small rubber balls. When the market price for small rubber balls falls below the minimum of its average total cost but still lies above the minimum of average variable cost, what happens to the firm? A. It will experience losses, but it will continue to produce rubber balls. B. It will be earning only accounting profits. C. It will be earning both economic and accounting profits. D. It will shut down. 38)
- THIS EXERCISE FOR MATHEMATICAL ECONOMIC : Question (4): Consider a firm, where there is competition, looking to maximize its profits and the market has determined that the equilibrium price, the price firms must charge consumers is $45 a unit. The firm has determined that to minimize its total cost of production, it must produce 3 (in millions) units of good x. The firm’s total cost function is: C(q)= q3+2q2+11q+2 How much will the firm earn in total sales (revenues)? How much will the firm incur in total costs? What will be the firm’s total variable cost of production? What will be the firm’s total profits? What will be the average cost of production per unit of good x and what will be the average revenue per unit earned? Suppose that the market has repriced good x (per unit) to $38 and the firm will adjust its output to minimize its total cost of production to 2 (in millions).Can the firm continue to operate under this environment? Explain how you come to your conclusion.In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q = 1000 units of output. Note that the vertical axis shows the quantity of capital while the horizontal axis shows the quantity of labor. Suppose that the firm is producing 1000 units of output at point A, using 200 units of capital and 100 units of labor. (i) As an outside consultant, what actions would you suggest to management to improve profits? (ii) What would you recommend if the firm were operating at point B, using 100 units of capital and 200 units of labor? Explain your answer.A textile firm in a competitive industry employs a particularly efficient manager torun the operations at its production facility. In the textile industry, a plant managertypically makes a salary of $4,500 per month. The textile firm employing thesuperior manager faces the LAC and LMC curves shown in the figure below. Inlong-run competitive equilibrium, the price of the product is $9. D-If the superior plant manager also owned the textile firm, she would earn$___________ of economic profit. Explain your answer.
