A market is said to be perfectly-competitive when:the market may be dominated by one or two major companies, but there aremany smaller companies also in the market.there are any number of products, equivalent buying and selling prices, andindividual buyers or sellers can affect those prices by their own actions.there is a homogeneous product, equivalent buying and selling prices, and noindividual buyers or sellers can affect those prices by their own actions.there is no opportunity costs incurred by the vendor nor by the buyer.there are any number of products, equivalent buying and selling prices, andindividual buyers or sellers can affect those prices by their own actions, butthere are no opportunity costs for buyers or sellers. Soft Cushion Company is highly decentralized. Each division is empowered to make its own sales decisions. TheAssembly Division can purchase cushion stuffing from the Production Division or from external suppliers. TheProduction Division has been the major supplier of stuffing in recent years. The Assembly Division has announcedthat two external suppliers will be used to purchase the stuffing at $20 per kilogram for the next year. The ProductionDivision recently increased its unit price to $40. The manager of the Production Division presented the followinginformation; variable cost $32, fixed cost $8, to top management in order to attempt to force the Assembly Division topurchase the stuffing internally. The Assembly Division purchases 20,000 kg per month.What is the monthly operating advantage (disadvantage) of purchasing the goods internally assuming the ProductionDivision is able to utilize the facilities for other operations resulting in monthly cash-operating savings of $40,000?$280,000$(360,000)$440,000$40,000$(280,000)

Note: Since you've asked multiple question, we will solve the first question for you. If you want…

A market is said to be perfectly-competitive when: the market may be dominated by one or two major companies, but there are many smaller companies also in the market. there are any number of products, equivalent buying and selling prices, and individual buyers or sellers can affect those prices by their own actions. there is a homogeneous product, equivalent buying and selling prices, and no individual buyers or sellers can affect those prices by their own actions. there is no opportunity costs incurred by the vendor nor by the buyer. there are any number of products, equivalent buying and selling prices, and individual buyers or sellers can affect those prices by their own actions, but there are no opportunity costs for buyers or sellers.

A market is said to be perfectly-competitive when: the market may be dominated by one or two major companies, but there are many smaller companies also in the market. there are any number of products, equivalent buying and selling prices, and individual buyers or sellers can affect those prices by their own actions. there is a homogeneous product, equivalent buying and selling prices, and no individual buyers or sellers can affect those prices by their own actions. there is no opportunity costs incurred by the vendor nor by the buyer. there are any number of products, equivalent buying and selling prices, and individual buyers or sellers can affect those prices by their own actions, but there are no opportunity costs for buyers or sellers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

For a given commodity and pure competition, the number of units produced and the price per unit are determined as the coordinates of the point of intersection of the supply and demand curves. Given the demand curve p = 90 - and the supply curve p = 50+, find the consumer surplus and the producer surplus. 10 consumer surplus $ producer surplus $ Illustrate by sketching the supply and demand curves and identifying the surpluses as areas. P 100 80 60 40 20 P 120 100 80 60 Producer Surplus Consumer Surplus 100 200 300 Producer Surplus DO P 100 80 60 40 20 P 120 100 80 60 Consumer Surplus Producer Surplus 100 200 300 Consumer Surplus →
Which of the following firms would most likely be part of a competitive market? Group of answer choices Tony’s brick oven pizza sells pizza by the slice in Georgetown. Abbot, a pharmaceutical company, is a major developer of insulin monitors. Marcus sells eggs that he collects from his hens to Safeway grocery. Central Gas & Electric, the single supplier or electricity.
Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?
Consider the weekly market for.gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (SMC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. PRICE (Dollars per gyro) 5.0 4.5 4.0 Competitive Market 3.5 S=MC 3.0 2.5 2.0 1.5 1.0 0.5 D 0 0 50 100 150 200 250 300 350 400 450 500 PC Outcome (?)
University Economics, Theory of Production
One way to increase profits in your business is to find a way to reduce your costs. Use the average cost and marginal cost curves presented in class to represent a firm that finds a way to reduce its costs. Assume the firm operates in a perfectly competitive industry, where the typical firm has no market power and free entry and exit eliminate economic profits. Use your diagram to show the economic profit the firm earns after it reduces its costs, but also use your diagram to show how the firm will adjust its price and quantity as other firms enter the industry. Complete your analysis by explaining why the price a firm receives for its product will tend to bear a relationship to its cost structure, even if competition is not perfect.
Which statement best explains how a perfect competition market structure determines the price of a product? A government controls the market and sets the price of a product. Consumers in the market agree to only pay a certain price for a product. The interaction of consumers and businesses determines the price. A small number of large businesses secretly agree to fix the price.
Assume that the MBA education industry is constant-cost and is in long-run equilibrium. Discuss what long-run equilibrium means. Market demand increases, but due to strict accreditation standards, new firms are not permitted to enter the market. Explain the nature of the original long-run equilibrium then analyze the determination of a new long-run equilibrium, showing the effects with the aid of graphs for a representative school as well as for the market as a whole. Explain with a compare/contrast analysis how your analysis changes if MBA’s are produced in an increasing cost industry. Page limit, one page and one page for supporting graphs.
Under conditions of perfect or pure competition, or close to those conditions, producers (firms) are what are called “price takers”. This means that the price for the product that they are selling is determined by the market. No matter how little or how much product they supply, they can sell all they want at that price. If they were to price their product higher, they will sell zero. Which of the following is true? The price is equal to marginal revenue but not average revenue The price is equal to marginal revenue and average revenue The price is equal to average revenue but is not equal to marginal revenue The price is above both marginal revenue and average revenue
Which of the following characteristic(s) of competitive markets is(are) necessary for a perfectly competitive firm to be a price-taker? i) There are many sellers and buyers. ii) Firms produce identical products. iii) Sellers and buyers are well informed. iv) There is no restriction on entry or exit. Group of answer choices (i) and (ii) only (i), (ii) and (iii) only (iii) only (iv) only
Your company operates in a perfectly competitive market. One of your business partners recommends creating an aggressive advertising campaign for your product in order to boost sales. What is wrong with this reasoning?