Question

1. Define and Compute Sr shut down and breakeven price, identify the short run supply curve...

1. Define and Compute Sr shut down and breakeven price, identify the short run supply curve of the firm.

2. Competitive Firm Equilibrium Long run, Exit/Entry in Long Run, Explain why a competitive firm can only earn normal economic profit (define) in long run.

3. Define monopoly, explain why the MR and P( AR) curve for a monopolist are different and why they are downward sloping and why does MR lie below the AR curve. Compute Monopoly P and Q and profits; compare monopoly price/quantity/profits with a competitive market price and quantity. Compute CS, PS, TS for monopoly as well as competitive market. Compare CS, TS, monopoly vs competitive markets; compute and explain the deadweight loss of monopoly markets. Use the comparison to comment on the antitrust laws of the country

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
True or False? 1. a.) If the market price is currently above the shut-down price, the...
True or False? 1. a.) If the market price is currently above the shut-down price, the firm will be making positive profits. b.) A competitive firm's supply curve is identical to its marginal cost curve. c.) A competitive firm will exit the industry in the long run if the price of its product falls below its average cost.
2. (10+10+6) Suppose you have the following data: Market demand is            P = 200 –...
2. (10+10+6) Suppose you have the following data: Market demand is            P = 200 – 5Q Total Cost Function is     TC = 150 + 6Q+ 2Q2 a) If this market has only one firm (monopoly), compute the quantity, price and profit of this firm. Compute PS. b) If this market had many firms (Perfect Competition), compute competitive market output, price, and profit. Compute TS. c). Illustrate your answers in (a) and (b) on the same graph. Your graph...
2. (10+10+6) Suppose you have the following data: Market demand is            P = 200 –...
2. (10+10+6) Suppose you have the following data: Market demand is            P = 200 – 5Q Total Cost Function is     TC = 150 + 6Q+ 2Q2 a) If this market has only one firm (monopoly), compute the quantity, price and profit of this firm. Compute PS. b) If this market had many firms (Perfect Competition), compute competitive market output, price, and profit. Compute TS. c). Illustrate your answers in (a) and (b) on the same graph. Your graph...
1. When total revenue is less than variable costs in the short run, what will a...
1. When total revenue is less than variable costs in the short run, what will a firm in a competitive market do? Select one: a. It will continue to operate as long as average revenue exceeds marginal cost. b. It will shut down. c. It will continue to operate as long as average revenue exceeds average fixed cost. d. It will always exit the industry. 2. Consider a monopoly that is able to practice perfect price discrimination. Which of the...
Could someone answer these questions briefly? 1) Describe a competitive firms supply curve, and explain why...
Could someone answer these questions briefly? 1) Describe a competitive firms supply curve, and explain why it is upward sloping. Also, explain why a competitive firm faces a horizontal marginal revenue curve. 2) What are long-run economic profits equal to in a competitive market (be sure to explain why and to not just give a number)? Also, explain why in long-run equilibrium price in a competitive market is equal to the minimum of average total cost.
1. For a perfectly competitive firm in the short run, the ____________ price is at minimum...
1. For a perfectly competitive firm in the short run, the ____________ price is at minimum average variable cost and the break-even price is at minimum ________ cost.    a. Shut-down: Marginal b. Shut-down: Average c. Operating: Average d. Operating: Marginal 2. The short-run supply curve for a perfectly competitive firm is a _______ line at zero quantity if the price is below minimum average variable cost but is the marginal cost if the price is at or above minimum...
1. A firm will shut down in the short run if A. variable costs exceed revenues....
1. A firm will shut down in the short run if A. variable costs exceed revenues. B. total costs exceed revenues. C. fixed costs exceed revenues. D. it is suffering a loss. 2. If TR > TC, a firm would ________ in the short run and ________ in the long run. A. operate; expand B. operate; contract C. shut down; expand D. shut down; contract 3. As long as existing firms ________ in industry, new firms will enter the industry,...
Question 1 Which of the following best describes the relationship between the short run supply curve...
Question 1 Which of the following best describes the relationship between the short run supply curve of a single firm and its MC curve? options: They are exactly the same They are not related The short run supply curve is the part of MC curve above ATC The short run supply curve is the part of MC curve above AVC Question 6 In the long run, the market supply curve in a competitive market ____________ options: is downward sloping is...
1.  What is the difference between the short run and the long run? Explain the        Law of...
1.  What is the difference between the short run and the long run? Explain the        Law of Diminishing Marginal returns. 2.  Discuss the difference between the market demand curve of a purely      competitive industry and the demand curve confronted by an individual      firm in pure competition. 3.  What is a monopolist, and what is required for a monopolist to earn profits      in the long run? 4.  What does the demand curve facing a monopoly look like?Why? 5.  What is the Law of Diminishing Marginal Utility...
1) A perfectly competitive firm's short-run supply curve is its: A. average variable cost curve above...
1) A perfectly competitive firm's short-run supply curve is its: A. average variable cost curve above the marginal cost curve. B. marginal cost curve above the average fixed cost curve. C. marginal cost curve above the average total cost curve. D. marginal cost curve above the average variable cost curve. 2)Economic Profit A. (per unit) is price minus average variable cost. B. is correctly described by all of these. C. as a total amount, is (P - ATC) times quantity....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT