4) can be mentioned that in a perfectly competitive market the price is constant and the demand curve is horizontal and therefore the profit-maximizing quantity would be when the marginal revenue is equal to the marginal cost and about that quantity the marginal cost will always be greater than the price as a result of which the profit level keeps on decreasing and therefore even if the highest quantity in cell the marginal cost will be greater than that of marginal revenue or price which might not a new highest profit and therefore we should always stick to the profit-maximizing quantity.
5) It can be mentioned that in a perfectly competitive market the price is actually fixed and the product is homogeneousand in this regard the seller and buyer have complete information about the product and therefore advertising in this case might not actually help because he cannot actually differentiate your product in terms of advertising or cannot claim the price is lower than that of the market price and instead it would increase the cost of your advertising campaign and therefore in order to make an advertising campaign I would actually choose a campaign which has the least cost such as word of mouth advertising and therefore any potential game from it would result in sales but in a perfectly competitive market as buyers and sellers know about each other, there wouldn't be any potential gain
4. If you are operating a business in a perfectly competitive market. You can sell as...
5. Your company operates in a perfectly competitive market. Your Manager told you that advertising can help you increase your sales in the short run. What kind of advertising campaign you will start for your product and how much gain is expected from an effective advertisement? (10 marks) Answer:
Your company operates in a perfectly competitive market. Your Manager told you that advertising can help you increase your sales in the short run. What kind of advertising campaign you will start for your product and how much gain is expected from an effective advertisement?
4. If you are operating a business in a perfectly competitive market. You can sell as much as at the market price. Why can you not simply increase your profits by selling a highest quantity? (10 marks) Answer:
b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer: 3. The economic student association at the University X is hiring students to make banners "I love economics" for the coming conference. Complete the following table and plot the production function and the cost function for producing banners. (Marks 10) Number of Output Marginal Cost of Cost of Total Cost Students Product...
You are a manager in a perfectly competitive market. The price in your market is $30. Your total cost curve is C(Q) = 10 + 2Q + .5Q2. a. What level of output should you produce in the short run? b. What price should you charge in the short run? c. Will you make any profits in the short run? d. What will happen in the long run? e. How would your answer change if your costs were C(Q) =...
You are the manager of Everyday Tomatoes; hence your firm operates in a perfectly competitive market. The price in your market is $30 (per bushel). Your total cost curve is: C(Q) = 600 + 3Q2 (Q is 1 bushels). What level of output should you produce in the short run? What price should you charge in the short run? Will you make any profits in the short run? What will happen in the long run?
You are a manager in a perfectly competitive market. The price in your market is $35. Your total cost curve is C(Q) = 10 + 2Q + .5Q2 and MC = 2 + Q. a. What level of output should you produce in the short run? b. What price should you charge in the short run? c. Will you make any profits in the short run? d. What will happen in the long run?
Yourtump any operates IP 16 / VIAYA / BAE VA in a perfectly compelit ive Market. Your manages to d goal that ad vertisinaan a increase youshga shart run what what kind of advertising compaigu you will start for your Product and how much
Assume that Firm A currently operates in a perfectly competitive market with positive profits. In the long run, there is inflow of new firms causing the total market supply to ___. Meanwhile, Firm A will ___ its output in response to decrease in market price. Increase; increase Increase; decrease Decrease; decrease Decrease; increase
27. If there is an increase in market demand in a perfectly competitive market, then in the short run a. there will be no change in the demand curves faced by individual firms in the market. b. the demand curves for firms will shift downward. c. the demand curves for firms will become more elastic. d. profits will rise. answer and why. thank you