Part C Suppose the market for flowers is perfectly competitive. The market dema decimals to 2...
Consider the market for private economics help. Assume it is perfectly competitive. The market's inverse demand curve is p = 1600 -5Q, with Q being the number of students receiving help per quarter and p being price per quarter. Economics help private marginal cost curve is MCP = 100 + 5Q. Also assume that, because economics professors curve their classes, when one student improves her grade, it causes every other student to have a lower grade. This is a negative...
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market. 2. What is the profit maximizing condition for a price-setting monopoly? 3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide...
In a competitive (same as perfectly competitive) market, the equilibrium price is determined : at the intersection of the firm's demand curve and the market supply curve at the intersection of the market demand and supply curves at the intersection of the firm's demand and marginal cost curves so as to cover the costs of the potential firms so as to cover the costs of the firms currently in the industry
Question 3 (32 marks) a The market of popcom is perfectly competitive. The market demand curve and supply curve are as follows: Demand: Qp = 2000-P Supply: 2 = 1400 +2P Firm K is one of the many firms producing popcorn in the market. The total cost function and marginal cost function are as follows: TC(q) =1250 +30 +29 MC(q) - 30 +49 i At what output level (g) would the average total cost be minimized? (6 marks) ii What...
Consider the market for private economics tutors in Davis. Assume it is perfectly compet itive. The market's inverse demand curve is p = 1600 - 5Q, with Q being the number of students receiving tutor per quarter and p being price per quarter. Economics tutors' private marginal cost curve is MCP = 100+ 5Q. Also assume that, because economics professors curve their classes, when one student improves her grade, it causes every other student to have a lower grade. This...
Please so work so I can use as study reference. Thank you :) 4) Suppose the inverse demand curve for a market is P-3-(ơn 6,000). The marginal cost of production in this market is S1 per unit (assume there is no fixed cost). the equailibrium price and quantity if the market is competitive b) Find the monopolist's marginal revenue function, and calculate the equilibrium price and quantity if the market is monopolized MR e) Sketch the supply and demand diagram,...
Suppose the inverse demand curve for a commodity in a perfectly competitive market takes the functional form: P (Q) = -.1Q + 10. Additionally, the firm’s marginal cost (MC) takes the following functional form: MC = 4 + 2Q. Recalling that a perfectly competitive firm is a price-taker in the market and its profit-maximizing output level (Qe) is always found by equating its price with its marginal cost: P = MC. Given all this, how much output (Qe) should the...
Suppose that some firms in a perfectly competitive market are making positive economic profits. Which one of the following would not be expected to occur? a. All firms’ economic profits would eventually be driven to zero at equilibrium. b. The equilibrium quantity sold will fall. c. The equilibrium price will fall. d. The supply curve will shift to the right. e. More firms would enter the market. . Which one of the following is not characteristic of a pure monopoly?...
[1] A perfectly competitive aluminum producer is currently producing a quantity where the market price is $0.67 per pound (i.e., 67 cents per pound), average total cost is $0.70, and average variable cost of $0.60 (which corresponds to the minimum point on the average variable cost curve). Would you recommend this firm expand output, contract output, or shut down in the short-run? Provide a graph to illustrate your answer. [2] Suppose the local crawfish market is perfectly competitive, with the...