The diagram below depicts the market for smart mobile phones for selected brands. Apple Iphone Price Nokia Lumia Samsung Galaxy Benefit Value Map of selected brands of Smartphone i. Refer to the value map. Which firm is in the superior competitive position?
Q: Which of the following is NOT an assumption of perfect competition? Select one: a. There are no…
A: Market structure refers to the place where the transaction of goods and services takes place between…
Q: Explain the features of large numbers of the sellers and the buyers in the perfect competition
A: There are many market in economy like monopoly , monopolistic , perfect competition , oligopoly ,…
Q: Will, Jill, and Phil are all wheat farmers. The wheat industry is perfectly (purely) competitive.…
A: The difference is that one will produce in the short run if the price is more than AVC and in the…
Q: Which market offers higher consumer surplus and why? The perfectly competitive firm or the monopoly…
A: In perfect competition, there are large number of buyers and sellers and each firm sells identical…
Q: Required information Graph A shows the market demand and supply in a perfectly competitive market.…
A: A perfectly competitive firm is price taker which accepts the market price as given.
Q: Traditional economic theory asserts that in a situation of perfect competition where there is…
A: To make competitive pricing examination proficient today, retailers need to mechanize this is on the…
Q: Identify the defining characteristics of a competitive market.
A: Perfect or pure competition is a form of market in which a large number of perfectly informed buyers…
Q: Which of the following is not an assumption of perfect competition? (a) There are no restrictions on…
A: Perfect competition is a market situation which rarely exist in practice. It is a market structure…
Q: Why do single firms in perfectly competitive markets face horizontal demand curves? A. With many…
A: Perfect competition is a form of market in which a large number of perfectly informed buyers and…
Q: Suppose the market equilibrium price of wheat is Rs.2 per bushel in a perfectly competitive…
A: Perfect competition is a market structure where there are many buyers and sellers selling…
Q: Choose the one alternative that best completes the statement or answers the question. i) Perfect…
A: Option D ie considerable advertising by individual firm In case of Perfect Competition, there are…
Q: A market is said to be perfectly-competitive when: the market may be dominated by one or two major…
A: Note: Since you've asked multiple question, we will solve the first question for you. If you want…
Q: Evaluate and explain the following statement: Competition is the disciplinarian of the market…
A: The competitive market is characterized by a large number of buyers and sellers in the market, free…
Q: Question 1 Which of the following characteristics is required for a perfectly competitive market?…
A: In a perfectly competitive market, no one has the market power to determine the price of the…
Q: A competitive firm can increase profit by_____________________if marginal cost exceeds price.…
A: In perfectly competitive market, all firms produce homogeneous product, where no single firm can…
Q: Which of the following is within the control of the perfect competitor? the selling price none of…
A: In the perfectly competitive market, it can be seen that the firms have very little or no market…
Q: The market for bananas is perfectly competitive. Firms in the arket are producing output and each…
A: The market is a system in which the exchange of goods and services takes place in terms of money.…
Q: What is the competitive structure of the firms listed below and why? A retail store selling…
A: Answer: This is an example of monopolistically competitive market structure.
Q: of the following are characteristics of a perfectly competitive market except: -small firm size…
A: Marginal revenue is the additional total revenue earned with an additional unit of production.
Q: Explain the feature of the large number of the sellers and the buyers in the perfect competition
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: In a market with perfect competition, Prices are set by businesses. businesses confronting an…
A: Technically, perfect competition creates a monopoly that enables a business to set any price because…
Q: Which of the following about perfect competition market structure is true? There are barriers to…
A: Marginal revenue is the additional revenue earned with an additional unit of output sold.
Q: Googol and Visagetext are two social media platforms. When Googol was launched, many reviewers…
A: In a market, several competitors enter to challenge the existing ones and try to capture the maximum…
Q: The market equilibrium in a perfect competition market is determined by millions of sellers and…
A: Perfect competition can be defined as the form of market where the large number of sellers sell the…
Q: of the following, what is the best example of a perfectly competitive market? Select the best…
A: Competition is a feeling of rivalry that takes place between the firms.
Q: Which of the following markets is the closest to a perfectly competitive market? Question 10…
A: The structure of the market where consumers and producers tend to have full information and no costs…
Q: Directions: Identify the Competitive Situation in each of the following scenarios. Consider the…
A: You have asked multiple questions. We will answer the first question for you. If u want any specific…
Q: The auto industry in the U.S. has long been dominated by the Big Three carmakers: Ford, General…
A: The monopoly is the market structure which has single seller in the market and the perfectly…
Q: The Japanese government is considering banning beer advertising throughout the country. The…
A: Banning beer advertising leads to a direct reduction in quantity demanded of beer, it also leads to…
Q: Which of the following is NOT an assumption of perfect competition? Select one. 1.There are no…
A: Perfect competition is a type of market which has large number of sellers and buyers. All of them…
Q: The decision to continue competing in a market depends upon the answers to the following questions…
A: To sustain in the market ones have to bear the fixed cost in the short run as we know. Compete with…
Q: Why is the perfect competition often used as a benchmark? Question 3 options: The perfect…
A: Perfect competition is a market where there are many buyers and sellers. The equilibrium price and…
Q: What principle explains why tech companies are leaving California for Texas but movie studios are…
A: Perfect Competition refers to the condition of the market of a good or service where all firms sell…
Q: Question 2 : Do parts a, and b a. Identify the four types of market structures. What are the…
A: The functional and other features of a sector are properly expressed by the market structure. It…
Q: The population for the local area increases A new firm enters the industry creating competition for…
A: The entry and exit of various form have impacts on the supply and demand for goods and services in…
Q: What is the correct answer? In pure competition, if the market price of the product is lower than…
A: Pure competition is a showcasing circumstance wherein there are an enormous number of dealers of an…
Q: In perfect competition, a large number of buyers and sellers exist a small number of sellers exist…
A: The market is a location where the transaction of services and commodities takes place. It is…
Q: Scenario Competitive? Scholastik Inc. owns the U.S. copyright to a popular book series. It is the…
A: Competitive market structure is also called perfect competition. In long run, firms in perfect…
Q: From the bank of terms match the letter that corresponds to the appropriate concept/description.…
A: The above terms are related to the various forms of market like perfect competition and monopoly. In…
Q: Evaluate and explain the following statement: The market system is a profit-and-loss system.
A: ‘Market’ refers to a place where goods are bought & sold. The goods are bought & sold at…
Q: QUESTION 3 Which of the following industries most closely approximates pure competition? A.…
A: Pure competition refers to the situation when a firm has to compete with a large group of sellers…
Q: What type of industry is described by the term "perfect competition"? an industry in which numerous…
A: In perfectly competitive market, price is constant so it is equal to marginal revenue and profit is…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- COURSE: MICROECONOMICS - Cournot Model:In the market for a given good there are only 2 firms satisfying the demand, and their respective total cost functions respond to the form: CTi = 10Qi + 5 and the demand is estimated to be: P = 31 - QIf the decision variable for both firms is that the quantity they will produce and realize will be decided simultaneously it is asked to:(a) calculate the profit and reaction function of each firmb) graph market equilibriumc) calculate the profits that both companies will obtain in equilibriumCOURSE: MICROECONOMICS - Stackelberg ModelIn a given market good there are only 2 firms that satisfy the demand, and their respective total cost functions are: CTi = 400 and the demand that is estimated is P = 120 - 2QIf the exception variable of both firms is the quantity they will produce, such that the decisions to produce are made sequentially firm number 1 will be the leader who decides the quantity to produce and firm number 2 (follower) decides based on the production of firm number 1, we ask:(a) quantity produced by each firm and its equilibrium price in the market.(b) Profit of each company at equilibrium and (c) Graph your resultsLarry, Curly, and Moe run the only saloon in town.Larry wants to sell as many drinks as possiblewithout losing money. Curly wants the saloon tobring in as much revenue as possible. Moe wantsto make the largest possible profits. Using a singlediagram of the saloon’s demand curve and its costcurves, show the price and quantity combinationsfavored by each of the three partners. Explain. (Hint:Only one of these partners will want to set marginalrevenue equal to marginal cost.)
- Andrea’s Day Spa began to offer a relaxingaromatherapy treatment. The firm asks you how muchto charge to maximize profits. The first two columnsin Table 10.5 provide the price and quantity for thedemand curve for treatments. The third column showsits total costs. For each level of output, calculate totalrevenue, marginal revenue, average cost, and marginalcost. What is the profit-maximizing level of output forthe treatments and how much will the firm earn inprofits?Firms J and K produce compact-disc players and compete againstone another. Each firm can develop either an economy player (E)or a deluxe player (D). According to the best available marketresearch, the firms’ resulting profits are given by the accompanyingpayoff table.a. The firms make their decision independently, and each is seeking itsown maximum profit. Is it possible to make a confident predictionconcerning their actions and the outcome? Explain.Firm KE DE 30, 55 50, 60 Firm JD 40, 75 25, 50b. Suppose that firm J has a lead in development and so can move first.What action should J take, and what will be K’s response?c. What will be the outcome if firm K can move first?What are positional goods? Would you discourage competition for their possession? If so how? If not, why not? Typed answer please. I ll rate
- a) A Dutch Brewing company produces Heineken beer, assume further that the marginal cost of producing a six pack of Heineken Beer is $6. Dutch Brewing company sells Heineken in two different Markets namely Africa and Europe whose inverse demand functions are ?? = 24 − ??and ?? = 12 − 0.5?? respectively.Requireda) Calculate the profit maximising Price-Quantity combinations in these two markets Africa and Europe.b) With this Pricing strategy calculate the profit. c) If competitive output (P=MC=6) for Africa is 18 and Europe is 12, Compute the deadweight losses in the two markets. d) Clearly illustrates that the third degree price discrimination is welfare improving over a single price policy. e) Suppose these markets were no longer separated. How would you construct the market demand in this situation? Would the monopolist’s profit-maximizing single price still be 15?You have conducted a study to determine if there is independence or dependence between market segments (A-C) and prices the segments are willing to pay for a product. The following cross tabular output appears. Under $10 $11-$15 over $15 All A 50 30 20 100 50.00 30.00 20.00 33.33 27.27 50.00 16.67 10.00 6.67 50.00 36.67 13.33 0.000 1.212 3.333 B 40 50 10 100 40.00 50.00 10.00 26.67 45.45 25.00 13.33 16.67 3.33 50.00 36.67 13.33 2.000 4.848 0.833 C 60 30 10 100 60.00 30.00 10.00 40.00 27.27 25.00 20.00 10.00 3.33 50.00 36.67 13.33 2.000 1.212 0.833 All 150 110 40 300…A diner has no competition when it comes to it's famous reuben sandwich combo plate, for which the graph shows the diners demand (d), marginal cost (mc), and marginal revenue (mr), curves. The price of $20 is based on the mr = Mc rule for profit maximazation. The rectangular region shown represents the net revenue from sales of the sandwich (total revenue from reuben combo sales minus total variable costs associated with reuben combo sales). Now, suppose the diner decides to raise the price during the lunch hour, which accounts for 60% of reuben combo sales, knowing that it's lunch-hour patrons are the most loyal buyers of the reuben combo and also that they are locked into the lunchtime slot by their work schedules. The diner raises the price just enough not to lose any lunch-hour buyers. Use the area tool to outline the region representing the resulting additional net revenue from the price increases. Part 2: As a result of the revised price structure, the diners net revenue…
- Two firms dominate the market for surgical sutures and competeaggressively with respect to research and development. The followingpayoff table depicts the profit implications of their different R&Dstrategies.a. Suppose that no communication is possible between the firms; eachmust choose its R&D strategy independently of the other. Whatactions will the firms take, and what is the outcome?b. If the firms can communicate before setting their R&D strategies,what outcome will occur? Explain.Firm B’s R&D SpendingLow Medium HighLow 8, 11 6, 12 5, 14Firm A’s R&D Medium 12, 9 8, 10 6, 8 SpendingHigh 11, 6 10, 8 4, 6Aidan and Celina are the only sellers of jack russell terrier (JRT) inAntigua. Celina chooses her profit maximizing number of JRTs to sell, q1, basedon the number of JRTs that she expects Aidan to sell. Aidan knows how Celinawill react and chooses the number of JRTs that she herself will sell, q2, aftertaking this information into account. The inverse demand function for JRTs isP(q1 + q2) = 2, 000 − 2(q1 + q2). It costs $400 to raise a JRT to sell.(a) Explain in detail what type of competitors are Aidan and Celina.(b) If Celina expects Aidan to sell q2 JRTs, what will her ownmarginal revenue be if she herself sells q1 JRTs?(c) What is Celina’s reaction function, R(q2)?(d) Now if Aidan sells q2 JRTs, what is the total number of JRTsthat will be sold?(e) What will be the market price as a function of q2 only?(f) What is Aidan’s marginal revenue as a function of q2 only?(g) How many JRTs will Aidan sell?(h) How many JRTs will Celina sell?(i) What will be the industry price? ANSWER…Aidan and Celina are the only sellers of jack russell terrier (JRT) inAntigua. Celina chooses her profit maximizing number of JRTs to sell, q1, basedon the number of JRTs that she expects Aidan to sell. Aidan knows how Celinawill react and chooses the number of JRTs that she herself will sell, q2, aftertaking this information into account. The inverse demand function for JRTs isP(q1 + q2) = 2, 000 − 2(q1 + q2). It costs $400 to raise a JRT to sell.(a) Explain in detail what type of competitors are Aidan and Celina.(b) If Celina expects Aidan to sell q2 JRTs, what will her ownmarginal revenue be if she herself sells q1 JRTs?(c) What is Celina’s reaction function, R(q2)?(d) Now if Aidan sells q2 JRTs, what is the total number of JRTsthat will be sold?(e) What will be the market price as a function of q2 only?(f) What is Aidan’s marginal revenue as a function of q2 only?(g) How many JRTs will Aidan sell?(h) How many JRTs will Celina sell?(i) What will be the industry price?