Homework Answers
All of these answers are true. Externalities are public goods are market failure because resource allocation is not efficient. Imperfect market structures are market failures because there is a loss in efficiency. Select 2nd option
Statement 1 is true but 2 is false because education is a quasi public good that leaves positive spillovers so it has a positive externality. Select 1st option
1st option is correct because when new firms enter consumers switch to their product and each firm faces a decrease in the demand
1st option is correct
Moral hazard
Add Answer to:
Which of the following is TRUE of market failures? Externalities and public goods are examples of...
1. Which of the following best explains why the number of firms is fixed in the...
1. Which of the following best explains why the number of firms is fixed in the short run in perfect competition? Marginal costs are too high to allow firms to operate profitably. Firms would wait to see how the long run develops. Capital is fixed in the short run. Firms would never want to enter a perfectly competitive industry. 2. Which of the following best explains why the number of firms is fixed in the short run in perfect competition?...
4. Which of the following is NOT a true statement about market conditions for firms under...
4. Which of the following is NOT a true statement about market conditions for firms under perfect competition a. Each firm will produce as efficiently as possible b. Consumer surplus is maximized. c. Economic profits of firms will always be zero in the long run. d. Government intervention must move markets to equilibrium. c. Price - Long-Run Marginal Cost - min Long-Run Average Cost 5. In the market shown on the graph on the right ATC a. Mark profit maximizing...
5 pts Question 5 In a competitive market the current price is $11, and the typical...
5 pts Question 5 In a competitive market the current price is $11, and the typical firm in the market has ATC $11.50 and AVC $11.15 In the short run firms will shut down, and in the long run firms will leave the market. In the short run firms will continue to operate, but in the long run firms will leave the market. New firms will likely enter this market to capture any remaining economic profits O The firm will...
Question 60 5 pts If there are five firms in an industry with equal market shares,...
Question 60 5 pts If there are five firms in an industry with equal market shares, then the Herfindahl-Hirschman Index equals Question 30 5 pts If firms in a monopolistically competitive industry are incurring short-run economic losses, then in the long run new forms producing the exact same product will enter the industry and this entry will continue until economic profits are eliminated. new firms producing close substitutes will enter the industry and this entry will continue until economic profits...
1. Which of the following is NOT a characteristic of a monopolistically competitive market?
1. Which of the following is NOT a characteristic of a monopolistically competitive market?A. many sellers.B. differentiated products.C. long-run economic profits.D. free entry and exit.2. Which of the following products is likely to be sold in a monopolistically competitive market?A. video games.B. breakfast cereal.E. beer.D. all of the above.3. Which of the following is true regarding the similarities and differences in monopolistic competition and monopoly?A. The monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand...
TRUE OR FALSE TF DO 1. In a price-taker market, all firms produce an identical product...
TRUE OR FALSE TF DO 1. In a price-taker market, all firms produce an identical product and each firm comprises only a very small portion of the total market. 2. If a price-taker firm wants to sell its output, it must accept the market price, but it can sell as much output as it wishes at that market price. O N 3. For a price-taker firm, its marginal revenue from the sale of an addi- tional unit is generally less...
31 In perfectly competitive industries: A. the shont-run market supply curves are positively sloped в. long-rusniustry...
31 In perfectly competitive industries: A. the shont-run market supply curves are positively sloped в. long-rusniustry supply curve,are positively sloped. C. the short-run D. All of the above E. Only B and C are correct market supply curves are more clastic than the long-run industry supply curvers s3. Assame a perfectly-competitive, increasing-cost industry composed of identical firms is initially in long-run equilibrium. Given a decrease in demand, in the short ran: equilbrium price decreases, equilibrium output increases, the output of...
Please help with these questions Question 21 0.4 pts The market for candles is perfectly competitive...
Please help with these questions
Question 21 0.4 pts The market for candles is perfectly competitive and is currently in equilibrium. What will happen if candles are later linked to more houses catching on fire? In the short run, firms will incur economic losses, but in the long run, firms will enter the market, bringing economic profits back up to zero In the short run, firms will experience economic profits, but in the long run, firms will enter the market,...
Please answer my questions: True or False and Explain 5)In a perfectly competitive market, if price...
Please answer my questions: True or False and Explain 5)In a perfectly competitive market, if price is above minimum average variable cost, then firms will enter until price is equal to minimum average variable cost. 6)A firm in a competitive industry is assumed to set their price to cover costs and a normal profit. 8)In a competitive market, a firm is said to shutdown when it is unable to pay its existing debts. 9)A monopolist can never earn excess profits...
Consider the following two graphs for a product produced in a perfectly competitive market (think, for...
Consider the following two graphs for a product produced in a perfectly competitive market (think, for example, corn or oats). The graph on top shows the market supply and demand functions for this product. The one at the bottom is the cost curves for a typical firm in the industry producing this product. These cost curves pertain to long run. As you know, in the long run firms can change the amounts of invested capital, new firms can enter the...
4. Which of the following is NOT a true statement about market conditions for firms under perfect competition a. Each firm will produce as efficiently as possible b. Consumer surplus is maximized. c. Economic profits of firms will always be zero in the long run. d. Government intervention must move markets to equilibrium. c. Price - Long-Run Marginal Cost - min Long-Run Average Cost 5. In the market shown on the graph on the right ATC a. Mark profit maximizing...
5 pts Question 5 In a competitive market the current price is $11, and the typical firm in the market has ATC $11.50 and AVC $11.15 In the short run firms will shut down, and in the long run firms will leave the market. In the short run firms will continue to operate, but in the long run firms will leave the market. New firms will likely enter this market to capture any remaining economic profits O The firm will...
Question 60 5 pts If there are five firms in an industry with equal market shares, then the Herfindahl-Hirschman Index equals Question 30 5 pts If firms in a monopolistically competitive industry are incurring short-run economic losses, then in the long run new forms producing the exact same product will enter the industry and this entry will continue until economic profits are eliminated. new firms producing close substitutes will enter the industry and this entry will continue until economic profits...
TRUE OR FALSE TF DO 1. In a price-taker market, all firms produce an identical product and each firm comprises only a very small portion of the total market. 2. If a price-taker firm wants to sell its output, it must accept the market price, but it can sell as much output as it wishes at that market price. O N 3. For a price-taker firm, its marginal revenue from the sale of an addi- tional unit is generally less...
31 In perfectly competitive industries: A. the shont-run market supply curves are positively sloped в. long-rusniustry supply curve,are positively sloped. C. the short-run D. All of the above E. Only B and C are correct market supply curves are more clastic than the long-run industry supply curvers s3. Assame a perfectly-competitive, increasing-cost industry composed of identical firms is initially in long-run equilibrium. Given a decrease in demand, in the short ran: equilbrium price decreases, equilibrium output increases, the output of...
Please help with these questions
Question 21 0.4 pts The market for candles is perfectly competitive and is currently in equilibrium. What will happen if candles are later linked to more houses catching on fire? In the short run, firms will incur economic losses, but in the long run, firms will enter the market, bringing economic profits back up to zero In the short run, firms will experience economic profits, but in the long run, firms will enter the market,...
Consider the following two graphs for a product produced in a perfectly competitive market (think, for example, corn or oats). The graph on top shows the market supply and demand functions for this product. The one at the bottom is the cost curves for a typical firm in the industry producing this product. These cost curves pertain to long run. As you know, in the long run firms can change the amounts of invested capital, new firms can enter the...
Most questions answered within 3 hours.
-
Giving examples from both the Partnership Act 1892 (NSW) and the
Corporations Act 2001 (Cth), explain...
asked 7 minutes ago -
ideas for startup can come from anywhere. fully
describe three possible sources
asked 10 minutes ago -
In a proton linear accelerator, protons are accelerated to have
a kinetic energy of 6.00 ×...
asked 26 minutes ago -
The Pan American Bottling Co. is considering the purchase of a
new machine that would increase...
asked 18 minutes ago -
Murton Industries Limited reported the following information on
its recent statement of financial position.
Ordinary shares:...
asked 24 minutes ago -
The water behind Grand Coulee Dam is 1200 m wide & 150 m
deep. Find hydrostatic...
asked 27 minutes ago -
In your own words,
please describe what 'multinational corporation' is, and what would
be some of...
asked 28 minutes ago -
n 2016, to help pay for college, you worked part-time at a
local restaurant, earning
$...
asked 44 minutes ago -
Your largest and most faithful customer wants its order shipped
early. You could do that, but...
asked 44 minutes ago -
Explain the relationship between audit, attest and assurance
services,
asked 1 hour ago -
From past data, it has been determined that
nationally, 21% of men aged 60-79 have Coronary...
asked 1 hour ago -
Consider the following statements. (i) The p-value forms the
borderline between significance levels that would result...
asked 1 hour ago