Question

PART 2 Costs & Revenue MC ATC Super-formal profits AR 0 Q MR Output Reconciso a. What type of market structure is shown in the graph above and how did you determine this? b. What would make this type of market structure develop? C. How does this market structure differ from that in Part 12 d. What will the firm's equilibrium price and quantity be? e. Is this an economically efficient equilibrium? Why or why net? f. What will the market equilibrium price and quantity be? g. Does this market structure raise any public policy issues? If so, what? h. Name an example of a firm that operates in a market of this type and explain how it qualifies as the market structure you identified. L. Focus Ee ENG 6:23 PM 7/29/2020

Answer 1

Answer

a. Its an imperfect competition, as the profit maximising quantity is at MR=MC and itsearnig supernormal profits

b. Where there are a low number of suppliers

c. The market suppliers earn econnomic profits , where i part 1 there was no economic profits

d. Equilibirum price is at P and equilibirum quatity is at Q.

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