Q: What are the major assumptions of the theory of imperfect competition. Please explain them in detail…
A: Assumptions of theory of imperfect competition 1.Many sellers and buyers There are many sellers and…
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Q: discuss why a firm in perfect competition will not charge a price above or below the market price.
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Q: Which is better: Perfect Price Discrimination (1st Degree Price Discrimination) or Perfect…
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Q: Price discrimination is only possible in perfect competition. True / False. Explain your answer…
A: Price discrimination refers to the phenomenon of charging a different price to different groups of…
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A: Since you have asked multiple question, we will solve the first three subparts as per honor code for…
Q: What is meant by price discrimination? What are the conditions to make price discrimination…
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Q: Inverse Demand Equation: P = 170 - 4Qd Marginal Costs=\$10; MR = 170 - 8Qd A perfectly -competitive…
A: The equilibrium condition: P=MC.
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Q: . Why is the marginal revenue of a perfectly competitive firm equal to the market price?xplain…
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Q: How does a monopoly differ from a perfectly competitive industry with the same costs? * O The…
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Q: Price discrimination is only possible in perfect competition. True / False. Explain your answer…
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Q: Why does a purely competitive firm not charge price above the market price?
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Q: State what market structure exists in the hotel industry in Jamaica during the 1990s. Can excess…
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Q: What is meant by price discrimination? What are the conditions to make price discrimination…
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A: Marginal revenue is increase in total revenue due to sale of one more unit of output.
Q: Why is the equality of marginal revenue and marginal cost essential for profit maximization? Explain…
A: In the production process, different inputs are used to produce the final output. A firm always has…
Q: 2. The widget market is characterized by perfect competition. The "inverse" market demand is P = 30…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: This table shows price and quantity produced for a single firm in a perfectly competitive market.…
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A: It is the market where the condition is different from perfect competitive firms.
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- Which is better: Perfect Price Discrimination (1st Degree Price Discrimination) or Perfect Competition?How often do perfectly competitive firms engage in price discrimination? a. Never. b. Rarely. c. Often. d. Always.Question: Price discrimination is only possible in perfect competition. True / False. Explain your answer theoretically and graphically. Also, discuss whether profit of firm is going to increase or decrease when it discriminates as compared to when it does not discriminate.
- Why is the equality of marginal revenue and marginal cost essential for profit maximization? Explain why price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive.Q5: Price discrimination is only possible in perfect competition. True / False. Explain your answer theoretically and graphically. Also, discuss whether profit of firm is going to increase or decrease when it discriminates as compared to when it does not discriminate.DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.a) For each price, find the total revenue, the total cost, and the profit.b) If the market was under perfect competition, what would be the price and the quantity ofpencils traded in the long run? Why?c) If there was only one seller on the market, what would be the price and the quantity ofpencils traded? Why?
- DuopolyMarket for mechanical pencils can be described by the following demand schedule:Price | Number of pencils demanded$6 | 80$5 | 200$4 | 320$3 | 440$2 | 560$1 | 680$0 | 800The fixed cost is $340, while the variable cost is $0.50.a) For each price, find the total revenue, the total cost, and the profit.b) If the market was under perfect competition, what would be the price and the quantity ofpencils traded in the long run? Why?c) If there was only one seller on the market, what would be the price and the quantity ofpencils traded? Why?d) If there were two firms on the market and they agreed to cooperate, how much would eachfirm need to produce? Follow the procedure outlined in the lecture and show that the otherfirm would prefer to deviate from the agreement.e) When the firms deviate from the agreement, there is a new optimal level of output. Showwhether the firms have an incentive to deviate from that level?f) If there were two firms on the market, what would be the price and the…Which of the following does a monopoly control that a perfectly competitive firm does not control? 1 how much to produce 2 technology 3 what price to charge 4 what inputs to useWhy is the equality of marginal revenue and marginal cost essential for profifit maximization in all market structures? Explain why price can be substituted for marginal revenue in the MR = MC rule when an industry is purely competitive.
- State what market structure exists in the hotel industry in Jamaica during the 1990s. Can excess profit be earned in this industry in the long run. Explain.3.1. Fill out the table below. Unit Marginal Marginal Quantity (Q) Price (P) Total Revenue (TR) Fixed Cost (FC) Variable Cost (VC) Total Cost (TC) Profit Cost Revenue 14 $10 $3 $43 15 $10 $51 16 $10 $60 17 $10 $70 18 $10 $81 3.2. Is the table above pertaining to a perfectly competitive firm or monopoly? How can you tell?Sort the following characteristics by whether they describe competitive markets, firms that can perfectly price discriminate, both, or neither.