Q: In pure competition, the marginal revenue of a firm always equals a. total revenue b. average total…
A: In perfectly competitive market, a firm has perfectly elastic demand curve which means the firm can…
Q: Which of the below changes in demand in the long-run would lead to entry in the perfectly…
A: In perfect competition there are large number of firms selling identical goods.
Q: Market power results in companies that and that have compared to perfect competition. O have more…
A: Market power with companies imply that they have the power to influence the prices and output. In…
Q: In perfect competition there is a single seller True/False
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A: Perfect competition refers to the situation where there are large number of prouder and consumers…
Q: Are there barriers to entry in a Perfect Competition market? Explain in detail.
A: In perfect competition, there is homogeneity in the products sold by the consumers. This means that…
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A: In a perfectly competitive market, when a firm is earning economy profit, it is the situation when…
Q: Explain the three points of the factor pricing under imperfect competition!!
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Q: der perfect competition, firms profit in the long run will be abnormal profits.
A: A firm's profit is maximized profits in a perfectly competitive market Where marginal revenue (MR)…
Q: Discuss briefly why competition exists in the industry? Give atleast Five reasons.
A: Competition in the industry exists due to following 5 reasons:- 1) Product features 2) Number of…
Q: Which of the following is not necessarily a characteristic of perfect competition? low pricesa large…
A: The implications of perfect competition are as follows: (i) The price is determined by the forces of…
Q: Discuss the long-run benefits of running a firm in perfect competition.
A:
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A: Perfect Competition is the market structure where there are large number of buyers and sellers. They…
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Q: The diagram below depicts the market for smart mobile phones for selected brands. Apple Iphone Price…
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Q: tive market
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A: Perfectly competition is characterized by the presence of large number of buyers and sellers. the…
Q: What is the competitive structure of the firms listed below and why? A retail store selling…
A: Answer: This is an example of monopolistically competitive market structure.
Q: True/False In Perfect competition market, differentiated goods are sold.
A: # In perfectly competitive market we have many buyer and sellers interacting with each other. There…
Q: Explain why a fast-food restaurant often displays characteristics of perfect competition.
A: The structure of a market where the consumption or production of goods and services do not tend to…
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A: The situation that depicts two or more parties striving for a goal that could not be shared and…
Q: In __________ market structure, the firm's are price maker
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Q: Are condominiums considered imperfect competition or perfect competition in the market?
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Q: Which of the following is NOT an assumption of perfect competition? Select one. 1.There are no…
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A: In perfectly competitive market, there are many buyers and sellers. The good is homogeneous.
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A: Perfect Competition is a market situation where there are large number of buyer and seller s dealing…
Q: 1 Evaluate the demand curve of firms that operate in Perfect competition
A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…
Q: In the short run, in a perfect competition market structure, if P>ATC which of the following will…
A: In the short run, the interaction between demand and provide determines the “market-clearing" price…
Q: Rebecca owns Louisiana Sugar Company, a manufacturer of sugar. Since there are lots of domestic…
A: Brand differentiation is the aspect through which firms try to attract customers so that the demand…
Q: In perfect competition, a large number of buyers and sellers exist a small number of sellers exist…
A: The market is a location where the transaction of services and commodities takes place. It is…
Q: In Perfect Competition, Demand shifts produce greater price adjustments and smaller quantity…
A: In a perfectly competitive market, it can be seen that the demand and supply of any product have…
Q: Basti’s Coffee operates in a competitive market. The short run price in the coffee market is equal…
A: Perfect competition is a market structure where a very large number of buyers and sellers exist, and…
Q: A Perfect Competition has [ Select ] producer(s), products are [ Select I v to enter the market,
A: Perfect competition is a market structure in which there are large number of buyers and sellers…
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A: In a perfectly competitive market, a large number of identical firm operates. Each perfectly…
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A: Monopoly and perfect competition are two extremely opposite kinds of market structure. In the case…
Q: Explain how the firm would maximise its profit, assuming that it faces conditions of perfect…
A: The term "perfect competition" refers to a market structure that exists only in theory. There are no…
Q: What is Perfect competition? (50 words only)
A: A market arrangement in which numerous enterprises provide a homogeneous product is known as perfect…
Q: How do firms that compete in four different markets structures determine profitability
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- Under what conditions is cost-plus pricing mostappropriate?Noticing that profits on college text books are very high, the Beast Book Store (BBS), with the help of a venture capitalist, has gone into text book publishing. In its current production range its average total cost is approximately equal to its marginal cost which it estimates to be about $25. It has estimated that price elasticity of demand for its books at current price levels to be about -1.5. The manager of BBS uses mark-up pricing to price the books that it sells using a 150% mark-up (even with this mark-up BBS can still underprice most other book publishers). Assuming that BBS wants to maximize short-term profits on its book sales and initially enjoys a monopoly in the local college textbook production market, is this a good pricing procedure? Harvard and other local colleges soon start publishing companies of their own increasing competition and causing the price elasticity of demand for BBS books to increase to -2.0. Assuming that BBS’s demand curve that generates this -2.0…You would like to control the total consumption of soft drink up to 100 bottles per year. The current two brands you drink are Pepsi and Coke. The current demand, price, elasticity, and minimum demand for Pepsi and Coke are given in below. In addition, you would like to keep equal or more demand from Pepsi due to brand loyalty. Assuming linear demand curves, what are the best price for Pepsi and Coke that can minimize your total payment? Elasticity Current price Demand Minimum demand Keep Pepsi income > = 60% of total payment Pepsi 2 2 300 20 Coke 1 3.5 220 25
- The price elasticity of demand for air travel differs radically from first-class (1.3) to unrestricted coach (1.4) to restricted discount coach (1.9). What do these elasticities mean for optimal prices (fares) on a cross-country trip with incremental variable costs (marginal costs) equal to $120?Sal’s Streaming Company streams TV shows to subscribers in the US and Canada. Demand is??? = 50 − (1⁄3)??? and ??? = 80 − (2/3)???where ?’s are in thousands of subscriptions per year and ?’s are the subscription prices per year.The cost of providing ? units of service is given by ?? = 1000 + 30?, where ? = ??? + ???.(a) What are the profit-maximizing prices and quantities for the US and Canadian markets?(b) As a consequence of a new VPN service that Facebook has developed, subscribers in Canadaare now able to get the US streams and vice versa, so Sal can charge only a single price. Whatis the profit-maximizing single price that he should charge?(c) In which situation is Sal better off? In terms of consumers’ surplus which situation do peoplein Canada prefer and which do people in the US prefer? Why?when offering discounts and sales on their products managers have to take into account price elasticity of demand of consumers. motivate the extend with which you agree with this statement
- Panini, a popular sandwich shop, offers 3 types of sandwiches: Grill vegetables, grilled chicken and pastrami. The table below provides demand data: Pastrami Grilled Vegetables Grilled Chicken Demand per hour 25 25 10 There are up to five steps in the process of making sandwiches, listed below with activity times. Only 50% of customers want their sandwich toasted, no matter which sandwich is ordered. Step Grilled Vegetables Grilled Chicken Pastrami Cut bread 75 minutes .75 minutes .75 minutes Grill 1.9 minutes 1.9 minutes Slice meat 3 minutes Toast 2 minutes 2 minutes 2 minutes Wrap .75 minutes .75 minutes .75 minutes Suppose Panini employs 1 worker at each step. What is the implied utilization of the bottleneck of this process?Why is price stability difficult to achieve inonline and global marketing?A company produces a special new type of TV. The company has fixed costs of $468,000, and it costs $1400 to produce each TV. The company projects that if it charges a price of $2400 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2100. Assume a linear demand. What price should the company charge to earn a profit of $742,000?
- The demand function for SkanDisc 2GB thumb drives is given by p- 4(x + 3) e"/a where p is the wholesale unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. Compute the price, p, when x 6. Do not round your answer. Price, p- 36e dollars Use implicit differentiation to compute the rate of change of demand with respect to price, p, when x- 6. Do not round your answer. Rate of change of demand, x' x thousands of units per dollar Compute the elasticity of demand when x - 6. Do not round your answer. Elasticity of Demand-Everyday-low pricing is a pricing strategy that is consistent with a goal of achieving long-term profitability through volume. ( ) a) True () b) FalseSuppose that BMW can produce any quantity of cars at a constant marginal cost equal to$50 and a fixed cost of $22,500. You are asked to advise the CEO as to what prices andquantities BMW should set for sales in Europe and in the United States to maximize its profits.The demand for BMWs in each market is given by:QE = 8,000 – 80PE and QU = 4,000 – 20 PU,where the subscript E denotes Europe, the subscript U denotes the United States. Assume thatBMW can restrict U.S. sales to authorized BMW dealers only. Support your answersgraphically as well.a. If, by an international agreement between Europe and United States, BMW wereforced to charge the same price in each market, what would be the quantity sold in eachmarket, the equilibrium price, and the company’s profit?b. Suppose now that Europe and United States signed a new trade package under whichBMW now can charge different prices across the two markets. What quantity of BMWsshould the firm sell in each market, and what should the price be…
