When analyzing the profit potential in an industRy, executives must consider the firms who do not currently compete in an industry but may join in the future. Which of the Five Forces does this relate to? The threat of substitute products The threat of new entrants The competitive rivalry within an industry The bargaining power of suppliers The bargaining power of buyers
Q: One CEO justified the merger of his soft-drink company with a machine tool company in the following…
A: When two big/large companies combine to form one big company it is called a merger. Example two…
Q: The following determine industry structure except A. The number of firms in an industry…
A: The number of firms in an industry will determine industry structure. Because if number of firms…
Q: The profit maximizing condition for a purely competitive firm is when... Group of answer choices…
A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…
Q: Market Structure Number of Firms Type of Product Sold Price Taker? Price Formula Freedom of…
A: Markets are broadly categorized into 4 types basis the number of buyers and sellers. They are 1.…
Q: Identify which market structure the following products are likely to fall under based on the…
A: Market structure, basically refers to the structure that classify different industries according to…
Q: True and False Also correct the false answers: 1. The firm operates in a long-run production period…
A: In a market, firm make decision regarding its cost, revenue, profit maximization and so on, and…
Q: The characteristics of perfect competition and imperfect competition (monopolistic competition,…
A: We are authorized to answer one question at a time since you have not mentioned which question you…
Q: ACME corporation currently has a 20% market share in a $15 billion industry (measured by sales…
A: Market share is a measure that specifies the percentage of the market which is earned by a specific…
Q: What firm dominates the beer industry? What demand and supply factors have contributed to “fewness”…
A: The beer industry is dominated by Anheuser-Busch. We will discuss how the demand(dd) side factor…
Q: Study the evolution of any brand/company of your choice regarding its target market. In…
A: Coca cola is one of the leading brands in the soft drink market . However it has changed its over…
Q: escribe one other method that Koji might use to address the double markup problem
A: Double markup: When assembling and dissemination is embraced by two progressive syndications, each…
Q: When a firm makes profit, this sends a signal to others. More competitors would enter the business,…
A: When there is free entry and exit in the industry, all firms will earn zero economic profit in the…
Q: Cost reduction and the Herfindahl and Lerner indexes. Consider an industry where demand has…
A: Herfindahl index measures the concentration of industry whereas the Lerner index calculates the…
Q: The elimination principle is the idea that profits are eliminated by firms exiting the industry and…
A: The elimination principle is the idea that profits are eliminated by firms exiting the industry and…
Q: Perfect competition is characterized by all of the following EXCEPT a. well-informed buyers and…
A: Perfect competition is a type of market structure.
Q: Comparing Market Types Another Name for Firms Special Traits Kind of Number of Producers Type of…
A: There are different types of market structures. The most suitable for from the four will be…
Q: Which of the below is FALSE under perfect competition in the long-run? A. there is no producer…
A: Perfect competition: It is a market structure where there are a large number of buyers and a large…
Q: A homogenous product is produced by two rival firms. They have the same costs. The market demand is:…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Because advertisement services are differentiated, Facebook sets the price equal to marginal…
A: 1) here, option D is correct that is Facebook sets the price equals to marginal cost. Because in…
Q: Argyle is a large, vertically integrated firm that manufactures sweaters from a rare type of wool…
A: Total profits is defined as the difference between total revenues and total costs. Economies of…
Q: All of the following are ways by which existing firms can deter the entry of new firms into an…
A: The answer to above is (A) threating to raise prices. When a new firm enters the industry , it faces…
Q: One source of new-product ideas is competitors. When Steven Fischer recently joined Frankie and Alex…
A: Given Frankie and Alex Specialty Products brand manager Steve Fischer's practice of making…
Q: Determine the type of market structure and state your reasons. Perfect Picture Cameras: Perfect…
A: In an economy, different types of products are offered and exchanged in different markets based kn…
Q: How may incumbent firms benefit from advertising and product proliferation to reduce competition and…
A: Competition: When there are several enterprises in a market, competition between them arises. The…
Q: Evaluate the following statement: “Managers should specialize by acquiring only the tools needed to…
A: The given statement “Managers should specialize by acquiring only the tools needed to operate in a…
Q: The table below shows revenue data for different firms producing refrigerators. Use the given…
A: The four-firm concentration ratio is the ratio that contains four firms having the largest sales as…
Q: Go to investor.siriusxm.com and check whether Sirius XM’s recent financial reports indicate that its…
A: given data Go to investor.siriusxm.com and check whether Sirius XM’s recent financial reports…
Q: Other things equal, which reduces competition in an industry? Multiple Choice An increase in the…
A: An invention concerning a product or a process that's new, involving inventive step and capable of…
Q: Limiting Market Power: Regulation and Anti-Trust Predatory pricing threatens to keep competitors…
A: In a market, a firm uses predatory pricing strategy to gain market power by threatening existing…
Q: What firm dominates the U.S. beer industry? What demand and supply factors have contributed to…
A: The demand(DD) & supply(SS) are the most important components of the market. The firms supply…
Q: Compared to the perfectly competitive industry, a monopoly options: provides a higher…
A: There are different sorts of the market under which various products and services are traded among…
Q: Barriers or barriers to entry into the industry are the characteristics of the oligopoly industry…
A: Barriers to entry are the process of prevention new entrants into the industry by using different…
Q: How firms that compete in the four different market structures determine profitability
A: please find the answer below.
Q: A profit-maximizing firm in a competitive industry has the cost structure shown in the table below.…
A: AVC=ATC-AVC Quantity ATC AFC AVC MC 1 25.00 20.00 5.00 4.20 2 14.40 10.00 4.40 3.60 3 10.87…
Q: Which is a barrier to entry in an industry? Multiple Choice Profit maximization Economies of scale…
A:
Q: Differentiate the four types of market structures regarding to the number of sellers and pricing…
A: Meaning of Market: The term market refers to the situation under which the producers or the sellers…
Q: QUESTION Consider an industry consisting of two firms, Alpha Electric (Alpha) and Beta Machines…
A: The oligopoly market is just like the market of monopolist but here there are more sellers but the…
Q: Assume that private schools form a competitive industry. Suppose the demand for private schools…
A: In a competitive industry firms are permitted to free entry and exit. With government offering…
Q: a source of market power that exists due to falling long run average total cost is a. Trade barriers…
A: Production cost is the monetary value incurred on factor of production to produce the output . And…
Q: There is only one provider of electricity in San Diego County - SDGE. They have a lot of power to…
A:
Q: Phoenix Electricity is the only company providing electricity in City H. What kind of market…
A: a) Phoenix Electricity is the only company providing electricity in city H. So, monopoly market…
Q: Refer to this table to answer the next three questions. The accompanying table represents the…
A:
Q: Once an organization’s mission has been established, it can begin to identify its strategy and…
A: Explanation of the question's core terminology- The phrases Vision and Mission are interchangeable.…
Q: Analyse how the S-C-P approach predicts performance (welfare) based on market structure and explain…
A: The S-C-P method predicts performance depending on market structure by analyzing businesses'…
Q: Select correct answer and explain why Q. In long-run equilibrium for a competitive industry, each…
A: Dear student, You have posted multiple questions in a single post. I shall answer question number 1…
Step by step
Solved in 2 steps
- Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm—Tile King. Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as Tile King to avoid the possibility of a price war. The pnce charged by Tile King is $20,000. Ajax has the following short-run cost curve: TC=800,0005,000Q+100Q2 Compute the marginal cost curve for Ajax. Given Ajaxs pricing strategy, what is the marginal venue function for Ajax? Compute the profit-maximizing level of output for Ajax. Compute Ajaxs total dollar profits.There are only two driveway paving companies in a small town, Asphalt, Inc. and Blacktop Bros. The inverse demand curve for the services is ? = 2040 − 20?where quantity is measured in pave jobs per month and price, in dollars per job. The firms have an identical marginal cost of $200 per driveway. If the two firms collude, splitting the work and profits evenly, how many driveways will each firm pave, and at what price? How much profit will each firm make? Does Asphalt have an incentive to cheat by paving one more driveway each month? Show it numerically.The petrol industry in Dubai has become increasingly concentrated in recent decades.The number of firms in the industry has dropped by 40 per cent since a 1999 peak, whilethe remaining firms “swelled in size.” In order to enter the industry, the owners of thecompanies must have significant capital at their disposal and they consider the impact oftheir decisions on competitors and the reactions of their competitors on themselves. Older firms tend to rest on their laurels, having little incentive to innovate. They spendless on research and development, and instead acquire growth through mergers oracquisitions and expand margins by raising prices on consumers. As at 2020, Cyril Techhas become the largest player in the market providing 80 per cent of the petrol output.The remaining players control 20 per cent of the output. a) State what market structure existed in the petrol industry subsequent to 1999. Canexcess profit be earned in this industry in the long run. Explain. b) State what…
- Need answer for part b only Zeus and Iron are the only two cement producers in Gotham. The cement they produce is essentially identical. In this market, each firm chooses the output level to produce and the price is determined by aggregate output (Cournot competition). The inverse demand for cement is given by P = 225 − Q/2 . Q is measured in tons and P is in euros. The marginal cost for Zeus is constant at 50 euros/ton. The respective cost for Iron is constant at 40 euros/ton. A technological innovation in the production process allows both firms to reduce marginal cost by 5 euros/ton. a) How much would each firm be willing to pay for the innovation, if it were the only firm to acquire it? b) Consider a situation where firms’ managers, simultaneously and non-cooperatively decide whether to acquire the innovation or not, which costs 900 euros, and then compete in quantities. What is the equilibrium of this game, based on its payoff matrix?Directions: Analyze and answer the questionsCompetitive PricingFirms need to take care when responding to competitor’s action with a pricing change,as this could trigger a potential price war. Therefore, in this activity you need to identifywhat would be the most appropriate pricing reaction for the following generic situationsactions.1. To communicate the high quality of your product against a new competitor2. The market that the firm operates in is deregulated (allowing more competitorsto enter)3. A new substitute product/industry emerges4. A major increase in production costs occurs5. The firm is looking to benefit from economies of scale6. When you know that key competitors will always match your price changes7. To increase market share significantly8. For one of the firm’s brands/products that has increased its brand equity9. When the firm’s product is experiencing high seasonal demand10.When a major competitor leaves the marketQUESTIONS1. For each of the above situations,…In recent years bubble tea has become a craze among Singaporean consumers, leading tomany new firms entering this market either as new Singaporean startups or as establishedfirms from aboard. There are now over 50 competitors in Singapore each of which sell theirown variations of bubble tea with different flavours, colours, ingredients and packaging.Using the theory and models of market structure, examine this industry. Should governmentbe worried about any aspect of how an industry with this market structure will perform?
- 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?Adani Shantigram is a picturesque township on Ahmedabad-Gandhinagarhighway. The statement ‘The Good quality life’ shows the commitment ofthe developer towards ensuring that the residents enjoy all the amenitiesand services in the township at least cost and inconvenience. In order toensure competitive outcome, ATRICO (Adani Real Estate Arm) hasensured that for all the important services, many service providers arepresent, so that none of them can charge a high monopoly price from theresidents. Therefore, there are 4 milk parlours, 4 laundromats, 4photocopiers, 4 beauty saloons and 4 grocers in the township. Thisnumber ‘4’ has been decided in a high level meeting, where this wasdiscussed that having less than 4 will result in duopoly/tight oligopoly,and having more than 4 will require more space and therefore notpreferred.Last month, the ladies in ‘Water Lily’ complained that the prices chargedby beauty saloons in the township are very high. In order to address thecomplaints, details…true or false: a horizontal merger will not be allowed to proceed if it does not create savings in marginal costs, because the total surplus will fall as a result of the merger Please do fast ASAP
- Lefola limited is the only manufacture of producr G easy in the popa land. It has provided documented levels of demand at certain selling prices for product Geasy which are as follows: Price per unit demand units total costs 7000 0 3000 6000 1 5000 5000 2 8000 4000 3 12000 3000 4 17000 2000 5 23000 1000 6 30000 Using a tabular approach, calculate the marginal revenues and marginal costs for product G-Easy at the different levels of demand, and so determine the sellibg pruce at which lefola limited's profits are maximized.COURSE: MICROECONOMICS - PERFECT COMPETITION AND MONOPOLY (RESUBMITION QUESTION) We appreciate a perfect competition market where there is a predetermined limit number of firms with 20 total firms.Each has the cost function such that: CTi = qi2 + 4qi + 3 where qi indicates numbers of firms (i = 20) The demand in the market is: Q = 100 - 4pa) What is the individual supply of each firm?b) What is the supply of the whole industry?c) Obtain the market equilibriumIn the case where a new firm intended to enter a monopolist's market:(a) What kind of legitimate entry barriers can the firm face understanding the nature of the market it wishes to enter?b) What type of anticompetitive barriers could the firm already in the market present?What are the main factors that made Xiaomi a leading smartphone company in China and What do competitive reaction do you expect from Samsung and Apple globally?