Which of the following options is characteristic of a contestable market? a. losses in the long run b.easy entry and exit of firms c.high profits in the long run d.substantial economies of scale
Q: An international or global competitor can strive to gain competitive advantage or counteract…
A: An international competitor refers to when an entity competes in another country. In this, the…
Q: A.How will bargaining over markups work between them? B. Will they agree to a maximum retail price…
A: This market is a bilateral market where there consists of a monopolist and a monopsonist. a…
Q: PROBLEM SOLVING Below is a data of the per-unit costs incurred by a competitor in selling face mask…
A: In a perfectly competitive market there are large number of firms producing identical products thus…
Q: 1. Ifit is not profitable for more than one firm to operate within an industry, this is an example…
A: "Since you have asked multiple questions, we will solve first question for you .. you want any…
Q: What are the market share of petroleum companies in india ?
A: India is the 3rd greatest oil consumer in the world after China and the US. India is the 4th largest…
Q: How do you do number 1
A: It is given that,The above table depicts the demand and cost structures of foreign language…
Q: -20 40 Enter 50 10 0 0 s the payoff to two airlines, A and B, of serving a particular route. If the…
A: *Answer: Explanation : According to the given conditions, Before tax firm A has a dominant strategy…
Q: Government should regulate mergers between firm's give reason in favor and against this statement
A: A merger is a process of merging the two existing companies into one with mutual agreement.
Q: 1. What price should these firms charge to maximize total industry profit? (Note: the marginal…
A: Table is calculated as follows
Q: Which barrier to entry into the industry or market is the most difficult to deal with by prospective…
A: Answer: Barriers to entry of new firms into the industry may prevent the newcomers into the market,…
Q: Practice Problem 1: Two firms produce homogeneous goods with constant marginal costs c = 2. The…
A: Monopoly is an one firm model. Cournot-Duopoly is 2 firms model. Monopoly profits, price and…
Q: What term describes a market where a monopolist cannot raise price above competitive levels? a.…
A: The theory of constable market states that firms with few competitors behaving in a competitive…
Q: If a firms output equals 10, product price equals $5.00, TFC = S8.00, and TVC = S60.00, then the…
A: Profit of a firm = Total Revenue - Total cost, where Total Revenue = Price * Total output sold, and…
Q: Competing rather than colluding typically causes market prices to and quantity supplied to O…
A: When firms collude, they typically reduce the production to make the good relatively scarce and…
Q: 4.Ford and Toyota sells the same products; it eVident that there is a Competition Distribution a. с.…
A: Competitive advantage refers to factors responsible for allowing a company to offer products that…
Q: P 14 13 12 11 10 9 8 7…
A: 1)To maximize total industry profit,price would be 14. 2)Revenue=14*500=7000 Cost=7*500=3500…
Q: (a) If Shell knows Chevron will choose the HIGH PRICE, what price should Shell choose? [ Select ]…
A: 1) If Shell knows that Chevron is going to choose high price, then the former shall choose high…
Q: P 14 13 12 11 10 9 8 7…
A: 1)Profit maximizing level of output would be 14. 2)At this price Revenue=14*500=7000 Cost=7*500=3500…
Q: Firms A and B compete à la Cournot and sell at a price P = 12 - (qa + q8). If none of them invest in…
A: The type of competition in the market in which the firms have a competition on the basis of number…
Q: Problem 1: Concentration. A cigarette industry consists of 4 firms, each producing a differentiated…
A: The price in tobacco industry (P) = 2 So, The quantity of the firm 1 (Q1) = 7 - P^2…
Q: Patent laws are related to positive externality of R&D. Essentially patents makes invention of new…
A: A company's research and development (R&D) can be a beneficial externality. R&D not only…
Q: Below we the market demand for a good, and the total cost of producing various levels of quantities…
A: Formula:TR=P×QMR=TRn-TRn-1MC=TCn-TCn-1ATC=TCqProfit=TR-TC
Q: tue or false? after an industry is regulated by federal regulatory agency, companies in the industry…
A: Federal regulatory bodies have powers to require that companies that are operating in a particular…
Q: If a fims output equals 10, product price equals $5.00, TFC = $8.00, and TVC = S60.00, then the…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: Refer to Figure 13.1. Here AR or Price is represented by the line D. If the government regulates…
A: We have given the cost curves and the demand curve of the Armstrong cable. From the given graph, we…
Q: Anything that prevents new firms from competing on an equal basis with existing firms in an industry…
A: A barrier to entry means a restriction imposed by law, or government and by the nature of the market…
Q: I. PROBLEM SOLVING Below is a data of the per-unit costs incurred by a competitor in selling face…
A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…
Q: Ca) Explain why markets with entry barriers are generically inefficient. b) Explain why adverse…
A: a. In some cases, barriers to entry might lead to monopoly while in other cases, they might tend to…
Q: 2. The state has announced its plans to license two firms to serve a market whose demand curve is…
A: (a) The market demand curve is given by Here, Q = Q1 + Q2 means firm 1 produces Q1 quantity, and…
Q: nsider a Cournot competition with N identical ns, each having MC=Ò and FC=0. Inverse mand is P=1O-Q.…
A: Usually there are two firms in cournot model, the firm competes on quantities.
Q: Q6-What type of Competition exists in the following industry? a) K Electric in Karachi b) Getz…
A: A market is a structure where the trade of goods and services take place for a price paid by the…
Q: 1. Consider a market for water with two firms. We assume two firms can produce e. In the equilibrium…
A: Part c) Yes there is incentive for both firms to cheat.
Q: From the consumer perspectives, do you agree that price war enhances market efficiency and…
A: Since you have asked multiple questions, we will answer only first question for you. If you have any…
Q: (KEY QUESTION) Bob is a magazine monopolist. His marginal cost of production (per magazine) is…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: If a firms output equals 10, product price equals $5.00, TFC = S8.00, and TVC = $60.00, then the…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: ABC Corporation is the sole_provider of a particular service inthe country. The government…
A: Monopoly can be defined as a market structure in which there operates a single producer selling the…
Q: A steel firm creates water pollution for a downstream fishery. The price and cost functions for…
A: Given information Price of steel=30 Price of fish=50 Cost of steel=6s+3s2-20x+2x2 Cost of…
Q: If a firms output equals 10, product price equals $5.00, TFC = $8.00, and TVC = S60.00, then the…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: i) Explain the trend of the poultry and egg breeding market structure. ii) Provide TWO (2) factors…
A: Since you have asked multiple question, we will solve first question for you. If you want any…
Q: What is the long run equilibrium price for the type of tiles that Art-tile produces? Why? How…
A: Tiles Workers AVC ATC MC TC Revenue 1000 10 8 20 8 22000 9000 2000 19 8 13.6 7.2 50000 18000…
Q: Select whether the statement is true or false. A firm can renew its trademark as many times as it…
A: Trademark registrations may be renewed for an infinite number of ten-year terms. Trademark law is…
Q: a) Calculate the reaction curves of both firms b) Calculate the Cournot equilibrium quantitis (i.e.,…
A:
Q: ) Discuss the deadweight losses that arise in the case of a monopoly. Discuss the theory of…
A: Monopoly market is characterised by presence of single firm and single firm is price maker. Thus,…
Q: Examine the U.S. passenger airline industry using the Five Forces. Is this an attractive industry?…
A: The five forces model is a framework for analyzing the attractiveness of an industry. Attractive…
Which of the following options is characteristic of a contestable market?
a. losses in the long run
b.easy entry and exit of firms
c.high profits in the long run
d.substantial economies of scale
Step by step
Solved in 2 steps
- 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 ASAPFigure: Insulin Prices Suppose a major insulin manufacturer sells in two markets, the U.S.A. and Mexico. If the marginal cost is the same in both markets, to maximize profits, it would charge _______ in the U.S.A. and _________ in Mexico. Group of answer choices $3700, $600 $50, $50 $3650, $550 $600, 3700Glyde Air Fresheners is the dominant firm in the solid room aromatizer industry, which has a total market demand given by Q = 80 - 2P. Glyde has competition from a fringe of four small firms that produce where their individual marginal cost equals the market price. The fringe firms each have a total cost given by: TCi = 10Qi + 2Qi2. If Glyde’s total costs are given by TCG = 100 + 6QG a) what price should Glyde establish for air fresheners? b) what is Glyde’s maximum profit?
- a) What is a tie-in contract and how does that differ from bundle pricing? b) What is a conglomerate merger and why are they more likely to be approved? c) Limit pricing is a strategy where a firm sets a low, but profitable, price to discourage entry. How does that differ from predatory pricing?Question 1 AVAC is the only pharmaceutical firm producing a Vaccine. The Demand Curve for its product is Qd = 250 – 50 P where P is Price and Q are packs of vaccines in ‘000 Total Cost Function estimated by the firm is TC = 15 + 0.5Q where Q is monthly output. a. What is the market structure of AVAC? State its characteristics. b. To maximize profit, What will be the optimum price and how many packs of Vaccine should the firm produce and sell per month? If this number of packs is produced and sold, what will be the firm’s monthly profit? c. Using available information, draw AVAC’s demand, marginal revenue and marginal cost curves in a graph and clearly label thefirm’s profit maximizing price, quantity and profit. Do you observe any welfare loss? If so, also indicate and label the area on the graph. d. Assume all other pharmaceutical firms in the market start producing the Vaccine and the market becomes competitive. What will be the impact on price and marginal…What type of market structure does Morton salt company opporate
- Which barrier to entry into the industry or market is the most difficult to deal with by prospective new entrants in the industry? Explain your answer.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.Assume the laptop market has 5 participants, each accounting for 20% of market share. Now two of the competitors decide to merge, how would this change the HH index? Would the proposed deal likely raise FTC’s concerns on reduced competition? a. Increase by 400. No. b. Increase by 400. Yes. c. Increase by 800. No. d. Increase by 800. Yes.
- a) The presence of network effects implies: (i) Higher barriers to exit for users, and higher barriers to entry for new competitors (ii)Higher margins in at least one market (iii)Tipping toward winner-take-all markets (iv) (i), (ii) and (iii) (v) (i) and (iii) onlyA barrier to entry is ________________. a. none of these. b. freedom to enter and exit. c. illegal in most markets. d. anything that protects a firm from the arrival of new competitors.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.