Partial equilibrium and supply curve: Explain Sraffa’s critique of the Marshallian industry supply curve based on diminishing returns under the general case?
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Partial equilibrium and supply curve: Explain Sraffa’s critique of the Marshallian industry supply curve based on diminishing returns under the general case?
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- Explain why the alternative of the industry supply curve based on constant returns is not viable for Marshall’s theory of value.Assume Tea brands A and B are competing brands in the market. With arrival of winter season, A announces good promotional deals. Using ‘Comparative Statics Analysis’ of demand and supply model: How will the managements of the two brands study the short-run and long-run impact on Tea Sales, after the announcement of promotions in the market of Tea? Demonstrate and explain, with clearly labelled two panel diagrams, the ‘Rationing Function’ and the Allocating or ‘Guiding Function’ of Price.Which one of the following activities would most likely be considered a long-run pricing decision? A. setting prices to generate a reasonable rate of return on investment B. changing prices in response to weak demand C. product mix adjustments in a competitive market D. one-time-only special order pricing that would result in achieving the break-even point
- PakMonoG’s inverse demand function is P = 100 – 2Q and cost function is TC = 10 + 2Q, where Q is quantity in units and P price in PKR. Determine the profit-maximizing price, quantity and profit (or loss) of PakMonoG. If we were to compare PakMonoG with a perfect competitive firm in the market, are there differences in characteristics of the two structures? What are welfare implications? Is total societal welfare of the firm higher or lower than that of a competitive firm?The demand curve facing a dominant firm in the price leadership model is derived by subtracting the a ) dominant firmʹs marginal cost curve from the industryʹs supply curve. b ) amount supplied by the smaller firms from market demand. c ) amount supplied by the smaller firms from market supply. d ) amount demanded by customers of the smaller firms from market supply.All economic market structures earn normal profit and are considered to be in the long run when Question 19 options: a) Price equals marginal cost b) Price equals average total cost c) Price equals marginal revenue d) Price equals average revenue
- Porters five forces analysis for an industry remains same irrespective of whether it is done by an incumbent or an outsider true false both of the above none of the above(Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd b. What is the equilibrium price and the equilibrium quantity for the dominant firm? Show your answer mathematically and graphically. c. In that equilibrium, what is the supply of competitive fringes? How many total products are there on the market? What is the market share of the dominant company and the fringe company? Show your answer mathematically and graphically Thank you Bartleby!(Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd a. What is the minimum price level required by the competitive fringe to offer output? At what price level will the fringe company supply the entire market? Thank you bartleby!
- (Dominant Firm with Fringe Competition) The structure of competition in the market for product A follows the dominant firm model with competitive fringes, where there is one company that is a dominant player and there are many fringes companies that compete competitively. The total demand for product A in this market is expressed by P = 1200 - Q, while the supply function of the competitive fringe is expressed by Sf: qf = P - 240. If the dominant firm is known to have marginal costs as follows: MCd = 240 + 0.25qd d. If the dominant company wants to limit competition from fringes, what can the dominant company do? What is the name of this strategy?In 2012-2015, the price of jet and diesel fuel used by air freight companies decreased dramatically. As CEO of FedEx, you have been presented with the following proposals below to deal with the situation. Evaluate these alternatives in the context of the decision-making model. Make long-term contracts to buy jet fuel and diesel at a fixed price for the next two years and set shipping rates to a level that will cover these costs.Consider the U.S. passenger airline industry through the lens of the Five Forces model. The industry, composed of many similar airlines, requires high fixed costs and is experiencing relatively low growth. Based on this information, rivalry among existing firms will tend to be ________ (high/low). All else equal, this implies that the airline industry is _______(more/less) attractive to enter..