Sort the following characteristics by whether they describe competitive markets, firms that can perfectly price-discriminate, both, or neither. maximize total surplus result in some deadweight loss zero economic profit in the long run eliminate consumer surplus

Sort the following characteristics by whether they describe competitive markets, firms that can perfectly price-discriminate, both, or neither. maximize total surplus result in some deadweight loss zero economic profit in the long run eliminate consumer surplus

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 7E

See similar textbooks

Related questions

Q: Suppose a new article is published claiming that Houston has abnormally high levels of pollution…

A: Market equilibrium occurs at such a point where the demand curve and supply curve intersect each…

Q: 5. Exercise 10.7 Royersford Knitting Mills, Ltd., sells a line of women's knit underwear. The firm…

A: Price elasticity of demand measures the responsiveness of quantity demanded to changes in price

Q: Assume that the price-cost marging of a hypothetical monopolist controlling a group of products from…

A: The term "critical loss" in economics refers to the greatest percentage drop in sales volume that a…

Q: Draw the correctly labeled graph that shows the impact of decreased money supply and its impact on…

A: The entire amount of money that is in circulation in the economy at any particular time is referred…

Q: What is the quantity that will minimize the average total cost? 04 O 7.5 20 O 11

A: The Average total cost refers to the per unit cost of production. ATC = TC/Q The ATC includes both…

Q: Explain the implicit costs associated with pursuing an MBA. Which do you think are greater for a…

A: Implicit costs associated with pursuing an MBA are the opportunity costs of no longer pursuing other…

Q: Beginning in 2022 central banks around the world began to respond to increasing inflation rates by…

A: Inflation in the economy means the rise in price of goods and services in the market. This is the…

Q: Your roommate Hansen argues that American producers cannot compete with foreign producers because…

A: Free Trade refers to the unrestricted exchange of goods and services between countries, without the…

Q: Lilliput is a country that has closed borders and does not import or export any goods or services;…

A: Budget balance refers to the difference between revenue and expenditure of government. The budget is…

Q: 14.4. ADVERTISING AND BRAND SWITCHING. Empirical evidence suggests that the prob bility of a…

A: Advertising is the practice of marketing or publicising a good, service, or concept with the goal of…

Q: QUESTION 1 If the demand equation for a firm's product is equal to P = 10-Q, the marginal revenue MR…

A: The additional money made from the sale of one more unit of a good or service is known as marginal…

Q: Explain with examples: Perfectly competitive market is beneficial for the consumer in a nation.

A: A perfectly competitive market is a market structure where there are many buyers and sellers of a…

Q: Use the table below to calculate the MPC, MPS, government spending multiplier, and tax multiplier.…

A: Introduction MPC is the percentage of a family's income extra income that's consumed. The percentage…

Q: young software genius is selling the rights to a new video game he has developed. A company have…

A: Net present value: Net present value (NPV) is a concept of valuation that can be utilized to value a…

Q: o written by hand solution Charmaine buys candy that costs $6 per pound. She will buy more than 7…

A: Cost of Candy = 6 she will buy 7 more candy

Q: In this problem, we want to think about the difficulties that governments face in agreeing to…

A: China's utility function captures the phenomenon that reducing CO2 emissions can result in a…

Q: What is China's budget constraint? Describe the maximisation problem of China, set up the…

A: In this case, we have to discuss the budget constraint. A budget constraint is a financial concept…

Q: Assuming constant wages implies that A. a decrease in the price of goods lowers profits and SAS…

A: The short run aggregate supply curve (SAS) shows the total quantity of output, real GDP that firms…

Q: Since Russia invaded Ukraine last year many sanctions have been imposed on Russia. Suppose the…

A: Russia's (country R) heinous war in Ukraine (country U) has already lasted over nine months. Country…

Q: "What should be the ideal Social Security Program for the United States?'

A: Introduction Any legal measures designed to sustain a person's or family's standard of living,…

Q: 14.6. PRODUCT POSITIONING AND PRICE COMPETITION. Consider a duopoly where horizon- tal product…

A: A duopoly is a market structure in which the majority of the market share for a specific good or…

Q: I do not need the answer to A. Can I get help on part D?

A: In Economics terms, the average variable cost refers to the variable cost per unit. It will be…

Q: Give typing answer with explanation and conclusion How might the global financial crisis create…

A: Introduction Since the pandemic emergency arrived, there has been a 90 trillion USD loss to the…

Q: Shift the appropriate curve or curves to show the short-run and long-run adjustments. Then place the…

A: Phillips curve is important thing in macroeconomics. That means Philips curve actually plays an…

Q: (c) Suppose that the unit tax is set at t = 0.1 per unit. What is the excess burden of this tax per…

A: Tax revenue is the money collected by a government through the imposition of taxes on individuals…

Q: 3. If all other factors remain the same, what happens to the demand curve for coffee if there is:…

A: A demand (D) curve is a graphical depiction of the correlation between the quantity (Q) of a product…

Q: 30. Consider a Solow Model where y = (Y/L) and k = (K/L) and y = k.5. L stands for the number of…

A: The Solow model explains that economic growth can occur through capital accumulation, which is the…

Q: The following graph plots the forward premium for a foreign currency along the horizontal axis,…

A: According to the interest rate parity (IRP) theory, the difference in interest rates between two…

Q: An amusement park decides to apply two-part tariff rule to set price, given the demand equation…

A: A two-part tariff rule involves charging customers both an upfront fee and a per-unit price. The…

Q: Use the DD-AA model to analyze the impact of a transitory decrease in the Foreign interest rate R*…

A: The AA-DD model is an economic model used to analyze the effects of exchange rate changes on a…

Q: 3 Income Taxation As part of Budget 2018, the Government of Canada introduced the Canada Workers…

A: A tax credit is a form of financial incentive that governments use to promote particular actions or…

Q: Briefly describe how interest rates are determined and how monetary policy affects interest rates.…

A: Monetary policy is a tool that a central bank uses to regulate the money supply and money demand of…

Q: Suppose that in a small town, the market for cement had five companies with market shares 0.3, 0.2,…

A: Herfindahl–Hirschman index or HHI index measures the market concentration by summing the square of…

Q: Assume that the real rate of interest is 5 percent and a lender charges a nominal interest rate of…

A: Real Interest Rate: Real interest rate is the cost of borrowing estimated in terms of buying power.…

Q: 2. What is Consumption Smoothing? How does Insurance help people Smooth Consumption?

A: Consumption smoothing refers to the process of maintaining a stable level of consumption over time,…

Q: 1. Explain Why the United States Government should be Involved in Education.

A: A government is a structure or collection of people in charge of enacting and upholding the laws,…

Q: Suppose the economy is initially at a long-run equilibrium. The Fed then increases the money supply.…

A: When the Fed increases the money supply, it typically leads to lower interest rates and increased…

Q: A company wants to provide a retirement plan for an employee who is aged 55 now. The plan will…

A: An annuity-due is an annuity for which the payments are made at the beginning of the payment…

Q: Suppose the demand for a product is given by x = 30 − 2p. (a) Find the elasticity of demand and use…

A: The firm maximizes total revenue when marginal revenue = zero. It will be an output at the mid-point…

Q: 4) Price Level Pa P4; Q4. OP2; Q4. LRAS P4; Q2. OP5; Q3. OP3; Q3. SRAS, None of the above SRAS 0₁ 0₂…

A: In economics, inflation is the term use for continuously rise in prices of all goods and services in…

Q: If Charles Lackey's utility costs remain constant at $500 per month, labor at $8 per hour, and cost…

A: The term "multifactor productivity" refers to the measurement of output, performance, and…

Q: Use a diagram to aid in your explanations. (a) Use the DD-AA model to show the effects of a…

A: A flexible exchange rate system is one where the rate of exchange is determined by the supply and…

Q: Which of these people will purchase one of the three mountain resort plots? Check all that apply.…

A: In a market, a seller and a buyer interact and make a transaction is they both are able to gain…

Q: If you are a marketing specialist working for the cell phone company, refer to your answers from…

A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…

Q: In 1983, Motorola accounted for seventy five percent of the mobile phone market. In the early days…

A: A place where the person willing to buy something meets with the person willing to sell that thing…

Q: If you want to withdraw $20,000 at the end of two years and $55,000 at the end of four years, how…

A: Present value (PV) refers to the current value of a future sum of money, based on a certain interest…

Q: Determine a scenario where government imposes a binding restriction on price (ceiling or floor).

A: Price ceilings means through which a good's price is kept from increasing past a specific point. The…

Q: What is the relationship between scarcity and shortage, as economists use the terms? O Scarcity…

A: Scarcity means there are limited resources available in the economy that are not sufficient to…

Q: An amusement park decides to apply two-part tariff rule to set price, given the demand equation…

A: Incase of monopoly, The profit is maximized where the marginal cost is equal to marginal revenue.…

Q: In your view, what is the best solution to the housing crisis in places like NY and San Francisco?

A: The housing crisis in places like new york and San Francisco is a complex and multi-faceted problem…

Question

Give typing answer with explanation and conclusion

Sort the following characteristics by whether they describe competitive markets, firms that can perfectly price-discriminate, both, or neither.

maximize total surplus

result in some deadweight loss

zero economic profit in the long run

eliminate consumer surplus

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

4 Two firms (A and B) sell identical products. They move at the same time. Demand in the market is P = 400 - (QA + QB). Firm A has costs C(QA) = 5,000 and MCA = 0. Firm B has costs C(QB) = 5,000 + 50QB and MCB = 50. Firm i's marginal revenue function is MRi = 400 - 2Qi - Q-i. In price competition, what will be the equilibrium price of the products sold? In price competition, what quantity will firm A produce? B produce? In price competition, how much profit firm A earn? B earn? In quantity competition, what quantity will firm A produce? B produce? In quantity competition, what will be the equilibrium price? How much profit will A earn? B earn?
Complete the table and answer the following: 1. Sketch a graph of the table 2. Compute consumer surplus, producer surplus, and deadweight loss. 3. If the movie theater industry were perfectly competitive, how many tickets would be sold and what would be the price of each ticket? [competitive outcome, (Pcomp, Qcomp)] Competitive price: $___ per ticket Competitive output: ___ tickets
It is often said that a competitive market is more beneficial for the consumers as compared to the monopoly market. Why ? Explain.
Which market offers higher consumer surplus and why? The perfectly competitive firm or the monopoly firm?
True or false b. Charging a price greater than marginal cost leads to maximum efficiency c. In reality, few markets are perfectly competitive, and some loss of economic efficiency occurs in most markets d. Most markets are perfectly competitive and economists have found that there is no loss of economic efficiency in the U.S. economy.
Assume the market of digital clocks is perfectly competitive. (A) Show the market demand for and supply of clocks in a relevant diagram, Indicate the consumer surplus and producer surplus in this market. (b) Suppose there is an improvement on technology that lowers the marginal cost of producing clocks. How would the technological improvement affect the price, quantity transacted, consumer surplus and producer surplus in the market? Depict your answer in part(a) diagram. (c) Now, the clocks turns into a monopoly market, what are the effects on the price, quantity transacted as well as economic welfare in this market? Depict your answer in a relevant diagram.(such as C.S. , P.S. , T.S. , and DWL)