Determine the market structure that is common in all the four firms.

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Answer 1

Question

Chapter 24, Problem 1QP

To determine

Determine the market structure that is common in all the four firms.

Expert Solution & Answer

Explanation of Solution

The common criterion in all the four firms’ market structure based on the pricing decision is that all the firms produce the quantity of output where the marginal cost is equal to marginal revenue.

Economics Concept Introduction

Perfect competition: Perfect competition is a type of market structure, which is considered by a large number of sellers and buyers who exist in the market, no barriers to entry and exit, selling the homogenous commodity, and the firm is known as a price taker.

Monopoly: Monopoly is a type of market structure, which is considered by a single seller who exists in the market, high barriers to entry and exit, selling goods that have no close substitutes, and the firm is known as the price maker.

Monopolistic competition: Monopolistic competition is a type of market structure, which is considered by a large number of buyers and sellers who exist in the market, few barriers of entry and exit, differentiated products, and the firms have some control over the market price.

Oligopoly: Oligopoly is the type of market structure, which is considered by few sellers who exist in the market with a large market share, high barriers to entry, and selling differentiated products.

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Students have asked these similar questions

Consider two industries, each comprising ten firms. In industry A, the largest firm has a market share of 49 percent. The next three firms have market shares of 7 percent each, and the remaining six firms have equal shares of 5 percent each. In industry B, the top four firms share the bulk of the market with 19 percent apiece. The next largest firm accounts for 14 percent, and the smallest five firms equally split the remaining 10 percent of the industry. a. Compute the four-firm concentration ratio and HI for each industry. Compare these measures across the two industries. Which industry do you think truly exhibits a more competitive structure? Which measure do you think gives a better indication of this? Explain. b. Now let the three second largest firms in industry A merge their operations while holding onto their combined 21 percent market share. Recalculate the HI for industry A. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…

“Why do industries like electricity or cable TV have just one or two major firms while other industries like restaurants or clothes have hundreds or thousands? What might be a general difference that leads to some industries having many firms while others are dominated by just one or two?”

For each scenario in the following table, determine which market model best describes the scenario. Then identify the number of firms, the type of product, and the ease with which new firms can enter the market under this market structure. Scenario Hundreds of colleges serve millions of students each year. The colleges vary by location, size, cost, and educational quality, which allows students to match schools to their diverse preferences. Hundreds of high school students who require tutoring in algebra choose among dozens of tutoring companies offering similar services. The taxi companies on all the licences granted by the city. Consumers don't care which taxi company Only one pharmaceutical company has a government patent to sell an experimental drug Number of Firms Type of Product Entry Market Model

Answer 2

Question

Chapter 24, Problem 1QP

To determine

Determine the market structure that is common in all the four firms.

Expert Solution & Answer

Explanation of Solution

The common criterion in all the four firms’ market structure based on the pricing decision is that all the firms produce the quantity of output where the marginal cost is equal to marginal revenue.

Economics Concept Introduction

Perfect competition: Perfect competition is a type of market structure, which is considered by a large number of sellers and buyers who exist in the market, no barriers to entry and exit, selling the homogenous commodity, and the firm is known as a price taker.

Monopoly: Monopoly is a type of market structure, which is considered by a single seller who exists in the market, high barriers to entry and exit, selling goods that have no close substitutes, and the firm is known as the price maker.

Monopolistic competition: Monopolistic competition is a type of market structure, which is considered by a large number of buyers and sellers who exist in the market, few barriers of entry and exit, differentiated products, and the firms have some control over the market price.

Oligopoly: Oligopoly is the type of market structure, which is considered by few sellers who exist in the market with a large market share, high barriers to entry, and selling differentiated products.

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Answer 3

Question

Chapter 24, Problem 1QP

To determine

Determine the market structure that is common in all the four firms.

Expert Solution & Answer

Explanation of Solution

The common criterion in all the four firms’ market structure based on the pricing decision is that all the firms produce the quantity of output where the marginal cost is equal to marginal revenue.

Economics Concept Introduction

Perfect competition: Perfect competition is a type of market structure, which is considered by a large number of sellers and buyers who exist in the market, no barriers to entry and exit, selling the homogenous commodity, and the firm is known as a price taker.

Monopoly: Monopoly is a type of market structure, which is considered by a single seller who exists in the market, high barriers to entry and exit, selling goods that have no close substitutes, and the firm is known as the price maker.

Monopolistic competition: Monopolistic competition is a type of market structure, which is considered by a large number of buyers and sellers who exist in the market, few barriers of entry and exit, differentiated products, and the firms have some control over the market price.

Oligopoly: Oligopoly is the type of market structure, which is considered by few sellers who exist in the market with a large market share, high barriers to entry, and selling differentiated products.

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Answer 4

Question

Chapter 24, Problem 1QP

To determine

Determine the market structure that is common in all the four firms.

Expert Solution & Answer

Explanation of Solution

The common criterion in all the four firms’ market structure based on the pricing decision is that all the firms produce the quantity of output where the marginal cost is equal to marginal revenue.

Economics Concept Introduction

Perfect competition: Perfect competition is a type of market structure, which is considered by a large number of sellers and buyers who exist in the market, no barriers to entry and exit, selling the homogenous commodity, and the firm is known as a price taker.

Monopoly: Monopoly is a type of market structure, which is considered by a single seller who exists in the market, high barriers to entry and exit, selling goods that have no close substitutes, and the firm is known as the price maker.

Monopolistic competition: Monopolistic competition is a type of market structure, which is considered by a large number of buyers and sellers who exist in the market, few barriers of entry and exit, differentiated products, and the firms have some control over the market price.

Oligopoly: Oligopoly is the type of market structure, which is considered by few sellers who exist in the market with a large market share, high barriers to entry, and selling differentiated products.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 24, Problem 1QP

To determine

Determine the market structure that is common in all the four firms.

Expert Solution & Answer

Explanation of Solution

The common criterion in all the four firms’ market structure based on the pricing decision is that all the firms produce the quantity of output where the marginal cost is equal to marginal revenue.

Economics Concept Introduction

Perfect competition: Perfect competition is a type of market structure, which is considered by a large number of sellers and buyers who exist in the market, no barriers to entry and exit, selling the homogenous commodity, and the firm is known as a price taker.

Monopoly: Monopoly is a type of market structure, which is considered by a single seller who exists in the market, high barriers to entry and exit, selling goods that have no close substitutes, and the firm is known as the price maker.

Monopolistic competition: Monopolistic competition is a type of market structure, which is considered by a large number of buyers and sellers who exist in the market, few barriers of entry and exit, differentiated products, and the firms have some control over the market price.

Oligopoly: Oligopoly is the type of market structure, which is considered by few sellers who exist in the market with a large market share, high barriers to entry, and selling differentiated products.

Answer 6

Chapter 24, Problem 1QP

To determine

Determine the market structure that is common in all the four firms.

Expert Solution & Answer

Explanation of Solution

The common criterion in all the four firms’ market structure based on the pricing decision is that all the firms produce the quantity of output where the marginal cost is equal to marginal revenue.

Economics Concept Introduction

Perfect competition: Perfect competition is a type of market structure, which is considered by a large number of sellers and buyers who exist in the market, no barriers to entry and exit, selling the homogenous commodity, and the firm is known as a price taker.

Monopoly: Monopoly is a type of market structure, which is considered by a single seller who exists in the market, high barriers to entry and exit, selling goods that have no close substitutes, and the firm is known as the price maker.

Monopolistic competition: Monopolistic competition is a type of market structure, which is considered by a large number of buyers and sellers who exist in the market, few barriers of entry and exit, differentiated products, and the firms have some control over the market price.

Oligopoly: Oligopoly is the type of market structure, which is considered by few sellers who exist in the market with a large market share, high barriers to entry, and selling differentiated products.

Answer 7

Chapter 24, Problem 1QP

To determine

Determine the market structure that is common in all the four firms.

Answer 8

Expert Solution & Answer

Explanation of Solution

The common criterion in all the four firms’ market structure based on the pricing decision is that all the firms produce the quantity of output where the marginal cost is equal to marginal revenue.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Perfect competition: Perfect competition is a type of market structure, which is considered by a large number of sellers and buyers who exist in the market, no barriers to entry and exit, selling the homogenous commodity, and the firm is known as a price taker.

Monopoly: Monopoly is a type of market structure, which is considered by a single seller who exists in the market, high barriers to entry and exit, selling goods that have no close substitutes, and the firm is known as the price maker.

Monopolistic competition: Monopolistic competition is a type of market structure, which is considered by a large number of buyers and sellers who exist in the market, few barriers of entry and exit, differentiated products, and the firms have some control over the market price.

Oligopoly: Oligopoly is the type of market structure, which is considered by few sellers who exist in the market with a large market share, high barriers to entry, and selling differentiated products.

Answer 12

Ch. 24.1 - Prob. 1ST Ch. 24.1 - Prob. 2ST Ch. 24.3 - Prob. 1ST Ch. 24.3 - Prob. 2ST Ch. 24 - Prob. 1QP Ch. 24 - Prob. 2QP Ch. 24 - Prob. 3QP Ch. 24 - Prob. 4QP Ch. 24 - Prob. 5QP Ch. 24 - Prob. 6QP

Determine the market structure that is common in all the four firms.

Determine the market structure that is common in all the four firms.

Explanation of Solution

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Chapter 24 Solutions