1. Which market structure(s) will have zero economic profits in the long run? The perfect competition market structure. 2. Which market structure(s) will be a price maker and have barriers to entry? The monopoly market structure. 3. There are currently 8 firms in a particular market. There firm sales are given in the table below. (1) What is the four-firm concentration ratio for this industry? (2) Would you classify it as an oligopoly? Firm 1 2 3 4 5 6 7 8 Four Firm concentration ratio- 71.43% Sales $1,000 $1,500 $2,000 $2,500 $3,000 $1,000 $500 $2,500 You would classify it as an oligopoly because the concentration ratio is greater than 60%. 4. Although market structures vary widely in their characteristics, (1) what is one common aspect among all of them? (2) What is the potential calculation for your previous answer (Answers in 4.1)? 5. In the long run, (1) which market structures are likely to have their average cost curve just sit on top of their demand curve? (2) What does this imply for each market structure? (3) Are there a any differences in the market structures you gave in your previous answer? 6. What market structure(s) are likely to cause a net loss to societal welfare? H

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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question #4
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1. Which market structure(s) will have zero economic profits in the long run?
The perfect competition market structure.
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2. Which market structure(s) will be a price maker and have barriers to entry?
The monopoly market structure.
6
3. There are currently 8 firms in a particular market. There firm sales are given in the table below. (1)
What is the four-firm concentration ratio for this industry? (2) Would you classify it as an oligopoly?
3
4
5
6
7
8
Four Firm concentration ratio= 71.43%
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Firm
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2
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You would classify it as an oligopoly because the concentration ratio is greater than 60%.
4. Although market structures vary widely in their characteristics, (1) what is one common aspect
among all of them? (2) What is the potential calculation for your previous answer (Answers in
4.1)?
8
5. In the long run, (1) which market structures are likely to have their average cost curve just sit on top of
their demand curve? (2) What does this imply for each market structure? (3) Are there any differences in
the market structures you gave in your previous answer?
6. What market structure(s) are likely to cause a net loss to societal welfare?
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$2,000
$2,500
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Transcribed Image Text:PA- States) 80 F3 E E AL $ 4 R 000 000 F4 67 5⁰ 5 % ¶ V 1. Which market structure(s) will have zero economic profits in the long run? The perfect competition market structure. F5 AaBbCcDdEn Normal 2. Which market structure(s) will be a price maker and have barriers to entry? The monopoly market structure. 6 3. There are currently 8 firms in a particular market. There firm sales are given in the table below. (1) What is the four-firm concentration ratio for this industry? (2) Would you classify it as an oligopoly? 3 4 5 6 7 8 Four Firm concentration ratio= 71.43% AaBbCcDdEe No Spacing MacBook Air F6 TY Firm 1 2 & 7 You would classify it as an oligopoly because the concentration ratio is greater than 60%. 4. Although market structures vary widely in their characteristics, (1) what is one common aspect among all of them? (2) What is the potential calculation for your previous answer (Answers in 4.1)? 8 5. In the long run, (1) which market structures are likely to have their average cost curve just sit on top of their demand curve? (2) What does this imply for each market structure? (3) Are there any differences in the market structures you gave in your previous answer? 6. What market structure(s) are likely to cause a net loss to societal welfare? F7 Sales $1,000 $1,500 $2,000 $2,500 U Aa BbCcDc Heading 1 $3,000 $1,000 $500 $2,500 AaBbCcDdE Heading 2 * 8 DII F8 > Styles Pane ( 9 F9 Focus E ) 0 J Dictate Sensitivit I F10 I 0 P F
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