a) Explain the connection between marginal , slope, and derivative. b) Give the conditions for competitive...
a) Explain the connection between marginal , slope, and derivative.
b) Give the conditions for competitive and perfectly competitive markets
c) What is an example of how you use a "model" in everyday life?
Homework Answers
a) :- Derivative of given function means change of one variable in relation to another at given point of function. And slope describe the steepness of a line of change im relationship between two variable like x values and y values.
B) :-Perfectly Competitive Market
is an idealised example that helps us to understand the interplay between supply and demand
Conditions for competitive and perfectly competitive market
all agents on the demand an supply side of a market are too
small to influence prices...
A competitive firm:
-Maximizes profits
-Is a price-taker
A competitive firm maximises profits...
in order to maximise the economic benefits of its owner
A competitive firm is a price taker..
as it is small and one of the many firms on the supply-side
Profit maximisation requires...
that the firm has sounds knowledge of it costs structures as well as the demand it is facing:profit maximisation involves costs and revenues
Demand faced by a perfectly competitive firm.
A perfectly competitive firm sells a homogenous product and takes prices as given, it faces a horizontal demand curve.
1.that there are many small firms, each selling homogenous
product and acting as price-taker
2.each individual firm faces a horizontal demand curve
3.the revenue any firm gains from any extra unit sold corresponds
to the market price
Add Answer to:
a) Explain the connection between marginal , slope, and
derivative.
b) Give the conditions for competitive...
a. Give three characteristics of a perfectly competitive market. [3 marks] b. List and explain three...
a. Give three characteristics of a perfectly competitive market. [3 marks] b. List and explain three types of barriers to entry that may be used in a monopoly. [3 marks] c. For a monopolist, why is marginal revenue less than price for every level of output except the first? [4 marks] d. Give the conditions which should exist for price discrimination? [3 marks] e. Draw a diagram to show the long run equilibrium condition of the perfectly competitive firm [4...
What are the conditions for a perfectly competitive market? What are some real-life examples of perfectly...
What are the conditions for a perfectly competitive market? What are some real-life examples of perfectly competitive markets? What are economic profit-maximizing strategies that may be made by a perfectly competitive firm? Identify a good that you regularly purchase and you feel is in perfect competition – how do the characteristics of the goods and the market structure it operates in affect the firm’s ability to change the price?
1. Competition (40 points) a. Describe perfect competition, monopoly and oligopolies and the relationship between marginal...
1. Competition (40 points) a. Describe perfect competition, monopoly and oligopolies and the relationship between marginal costs, marginal revenue and the price levels at equilibrium within each type of these markets (Using graphs might be helpful). b. Under what conditions do oligopolies function like perfect competition or monopolies? Explain in detail. Can we ever observe perfectly competitive markets or tendency towards them in the real world? Why, why not? C.
Question 3 (a) Explain the three conditions held at the long-run equilibrium in a perfectly competitive...
Question 3 (a) Explain the three conditions held at the long-run equilibrium in a perfectly competitive market with a diagram. (10 marks) (b) If a firm makes zero economic profit, it will exit the market in the long run. Do you agree? Explain. (7 marks) (c) What makes a firm become a natural monopolist, and how does it become a barrier to entry of new firms? Explain. (8 marks)
The marginal revenue curve for a perfectly competitive firm is O A. vertical O B. a...
The marginal revenue curve for a perfectly competitive firm is O A. vertical O B. a straight line coming out of the origin with a 45 degree slope. O C. downward sloping. O D. upward aloping CE horizontal A cartel is a group of firms acting together to output, price, and increase O A. increase; raise; marginal revenue O B. limit; lower; total revenue O c. limit: raise; economic profit O D. increase; raise; economic profit
5. Explain the difference between a Nash equilibrium and a dominant strategies equilibrium. Give an example...
5. Explain the difference between a Nash equilibrium and a dominant strategies equilibrium. Give an example to show how the prisoners' dilemma helps to explain behaviour. 6. Why might a firm set prices based on a markup above average cost rather than equalising marginal costs and marginal benefits? 7. Using a diagram, explain how an external cost of production (i.e. a negative production externality) can be internalised with a tax. |8. Explain the conditions of price discrimination. Give two examples...
Answer the following questions regarding your recent lab. (15 points) a) Give an example of how temperature affects the rate of reactions in everyday life. b) Give an example of how particle size...
Answer the following questions regarding your recent lab. (15 points) a) Give an example of how temperature affects the rate of reactions in everyday life. b) Give an example of how particle size affects the rate of a reaction in everyday life. c) A student was asked to provide an example of the effect of increasing temperature on reaction rate. The student gives an example of how sugar dissolves faster in warm tea than it does in iced tea. Is...
D) Assuming this is a perfectly competitive market, explain how the supply curve of the steel...
D) Assuming this is a perfectly competitive market, explain how the supply curve of the steel market is derived. In your explanation, you need to explain the relationship between marginal cost, opportunity cost and reservation price, and how it determines the supply decisions made by the producer.
3. Illustrate graphically Suppose that a competitive firms marginal cost of producing output 2 is given...
3. Illustrate graphically Suppose that a competitive firms marginal cost of producing output 2 is given by MC(q)= 70+6q Assume that the market price of the firm's product is $145. A. At what level of output will the firm produce? B. How much is the firm's producer surplus? C. Illustrate graphically profit maximization point and producer surplus. D. Illustrate this market at a loss. Explain. 4. Graphically illustrate a perfectly competitive firm and a non-perfectly competitive firm side by side....
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market....
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...
1. Competition (40 points) a. Describe perfect competition, monopoly and oligopolies and the relationship between marginal costs, marginal revenue and the price levels at equilibrium within each type of these markets (Using graphs might be helpful). b. Under what conditions do oligopolies function like perfect competition or monopolies? Explain in detail. Can we ever observe perfectly competitive markets or tendency towards them in the real world? Why, why not? C.
Question 3 (a) Explain the three conditions held at the long-run equilibrium in a perfectly competitive market with a diagram. (10 marks) (b) If a firm makes zero economic profit, it will exit the market in the long run. Do you agree? Explain. (7 marks) (c) What makes a firm become a natural monopolist, and how does it become a barrier to entry of new firms? Explain. (8 marks)
The marginal revenue curve for a perfectly competitive firm is O A. vertical O B. a straight line coming out of the origin with a 45 degree slope. O C. downward sloping. O D. upward aloping CE horizontal A cartel is a group of firms acting together to output, price, and increase O A. increase; raise; marginal revenue O B. limit; lower; total revenue O c. limit: raise; economic profit O D. increase; raise; economic profit
5. Explain the difference between a Nash equilibrium and a dominant strategies equilibrium. Give an example to show how the prisoners' dilemma helps to explain behaviour. 6. Why might a firm set prices based on a markup above average cost rather than equalising marginal costs and marginal benefits? 7. Using a diagram, explain how an external cost of production (i.e. a negative production externality) can be internalised with a tax. |8. Explain the conditions of price discrimination. Give two examples...
3. Illustrate graphically Suppose that a competitive firms marginal cost of producing output 2 is given by MC(q)= 70+6q Assume that the market price of the firm's product is $145. A. At what level of output will the firm produce? B. How much is the firm's producer surplus? C. Illustrate graphically profit maximization point and producer surplus. D. Illustrate this market at a loss. Explain. 4. Graphically illustrate a perfectly competitive firm and a non-perfectly competitive firm side by side....
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...
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