EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Question
Chapter 18, Problem 2SPPA
To determine
To explain:
The varying barriers to entry in the automobile industry and the way combination of market demand and economies of scale has changed the structure of the automobile industry.
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Students have asked these similar questions
What could McDonald’s do to create barriers that would prevent others from entering the markets and would make it harder for remaining hamburger shops to remain in the market?
The third question assumes the previous 2 questions I submitted were answered. in order to answer this question, you need to know
the marginal revenue and marginal costs. + how much should McDonald’s charge for its hamburgers to maximize profit?
McDonald’s
Quantity
Variable Costs
Fixed Costs
Total Costs
Price
Total Revenue
Profit
Marginal Costs
Marginal Revenue
1,000
500
5,000
5,500
4.00
$4,000
-1,500
2,500
1,000
5,000
6,000
3.50
$8,750
2,750
0.33
3.17
4,000
1,400
5,000
6,400
3.00
$12,000
5,600
0.27
2.17
9,000
2,400
5,000
7,400
2.00
$18,000
10,600
0.20
1.2
13,000
3,400
5,000
8,400
1.00
$13,000
4,600
0.25
-1.25…
1. Do you believe that Netflix will become or is already a monopoly? What are some of the monopoly traits that would make you believe it will soon be or is already a monopoly?
2. In a competitive business environment, firms are said to be break-even in the long run. What does this exactly mean, why does it happen? Does this long-run break-even outcome apply to all market structures, and why?
Use the cost and revenue data to answer the questions.
Quantity Price Total Revenue Total Cost
10
90
15
80
20
70
25
60
30
50
35
40
900
1200
1400
1500
1500
1400
675
825
1025
1250
1500
1850
What is marginal revenue when quantity is 25?
What is marginal cost when quantity is 15?
If this firm is a monopoly, at what quantity will profit
be maximized?
If this is a perfectly competitive market, which quantity will
be produced?
$ 20
$
90
Incorrect
quantity: 6
Incorrect
quantity: 8
Incorrect
Chapter 18 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 18 - Prob. 1SPPACh. 18 - Prob. 2SPPACh. 18 - Prob. 3SPPACh. 18 - Prob. 4SPPACh. 18 - Prob. 5SPPACh. 18 - Prob. 6SPPACh. 18 - Prob. 7SPPACh. 18 - Prob. 8SPPACh. 18 - Prob. 1IAPACh. 18 - Prob. 2IAPA
Ch. 18 - Prob. 3IAPACh. 18 - Prob. 4IAPACh. 18 - Use this information to work Problems 5 to 7. DOJ...Ch. 18 - Use this information to work Problems 5 to 7. DOJ...Ch. 18 - Prob. 7IAPACh. 18 - Which of the following statements is incorrect. In...Ch. 18 - If firms in oligopoly form a cartel, it will...Ch. 18 - Prob. 3MCQCh. 18 - Prob. 4MCQCh. 18 - Prob. 5MCQCh. 18 - Prob. 6MCQCh. 18 - Prob. 7MCQ
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