Ans
Because there is too much competition. Also they don't differentiate their products. The substitutes are very close and too many
Why are some producer forced to sell their products at the prevailing market price
Jones is a price-taker producer in some market, and we learned that his most profitable output is where marginal cost equals the market price. How can this possibly be true, since its cost equals revenue profits can never be higher than zero?
6. Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used economics textbooks. Each student has only one used textbook to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used textbook. Region A (the purple shaded area) represents the total producer...
Question 28 2 pts Why do perfectly competitive firms sell their products only at the market price? Firms can sell their goods above the market price because firms are considered price takers. If a firm charges more than other firms, it will sell nothing; it has no incentive to sell at a lower price. Firms can sell their goods above the market price because firms are considered price makers. If a firm charges less than other firms, it will be...
Two firms sell identical products and compete as Cournot (price-setting) competitors in a market with a demand of p = 150 - Q. Each firm has a constant marginal and average cost of $3 per unit of output. Find the quantity each firm will produce and the price in equilibrium.
i know answer is B but could you explain why
Figure: Gain In Producer Surplus Price Quantity Refer to Figure: Gain in Producer Surplus. Identify the area or areas that represent the total change in consumer surplus when the price floor at P1 is lifted and the market reaches equilibrium price (i.e., market clearing price). a. A and B b. B and C price cant be below a certain point 4. D and E d. A, B, and C laborib
Please Answer Part 2. The market for fabric has only one producer. Assume that daily market demand for fabric is y = 100,000 - 100p, where y denotes the quantity and p denotes the unit price. Also assume that producing y units of fabric costs 100y. 1. How many units of fabric should the producer produce and sell in order to maximize profits? Calculate the profit-maximizing price and the profit. 2. Now suppose that to produce one unit of fabric...
1. Why does producer surplus decrease as price decreases? a. Producers sell less of the good and receive less from the lower price. b.Producers sell more of the good but receive less from the lower price. c.Consumers buy more of the good at the lower price. d.Producers sell less of the good while consumers buy even more of the good. 2.When the use of a communally owned resource has no price, then people will a. not use this resource b....
Region A (the purple shaded area) represents the total producer surplus when the market price is _______ , while Region B (the grey shaded area)represents (the total producer surplus / the change in
total producer surplus) when the market price (is
$125 / is $175 / changes from $200 to $175 / changes from $125 to
$175).
Hepner Products enters into a contract with Tullis to sell three different products. The total price is $350,000 Each of the products is a separate performance obligation. Based on the information presented in the table, what is the allocated transaction price of product Z using the adjusted market assessment approach? (Round intermediary percentages to the nearest hundredth percent, and round your final answer to the nearest whole number.) Product Standalone Price Market Price X $150,000 $130,000 Y $125,000 $135,000 Z...
6. Producer surplus and price changes The following graph shows the supply curve for a group of students looking to sell used smartphones. Each student has only one used smartphone to sell. Each rectangular segment under the supply curve represents the "cost," or minimum acceptable price, for one student. Assume that anyone who has a cost just equal to the market price is willing to sell his or her used smartphone. (? 480 400 DO Neha 320 0 Lorenzo PRICE(Dollars...