Describe the main differences between each of the four market structures we've studied in class. Be sure to comment onhow the characteristics of the market/industry structures affect economic efficiency as well as firms' ability to earneconomic profit in the long run.

Let's delve into the main differences between the four market structures: perfect competition,…

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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no need for the graph could you just answer each scenario in 3 terms: optimal prize , optimal quantity and profit
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 →
Homework 3 B. Dominant firm model questions Assume a market of a crude oil market. The world demand and the supply equations for OPEC (Price leader) and shale (follower) oil producers are as shown below: Qworld.D = 150 – 3P, MCOPEC = 5+ 0.4Qs.OPEC MCSHALE = 30 + Qs.SHALE 1. Find the market price 2. Find the market quantity supplied by OPEC and market quantity supplied by Shale 3. Find the profit of OPEC and profit of Shale oil producers
Which of the following products/markets is most consistent with the perfect competition model? Apple iPhones a bustling farmers' market Kellogg's Frosted Flakes electric utilities automobiles 2 Adam Smith’s “invisible hand” refers to The mechanism that moves market price and quantity to equilibrium The natural tendency of markets to avoid monopolies and ensure competition The market’s incentive to lower price in order to increase quantity sold The lack of government role in the free market due to the market’s ability to self-regulate The tendency of firm’s to seek to merge in order to realize synergies and market dominance 3 A company facing inelastic demand for a product sees an increase in its costs after a worker strike forces a wage increase. What is likely to happen to the price and quantity sold of that product? Price will fall slightly while…
Suppose Madison operates a handicraft pop-up retail shop that sells rompers. Assume a perfectly competitive market structure for rompers with a market price equal to $20 per romper. The following graph shows Madison's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for rompers for quantities zero through seven (including zero and seven) that Madison produces. TOTAL COST AND REVENUE (Dollars) 200 175 150 125 100 75 0 -25 □ 0 ☐ 1 2 3 5 QUANTITY (Rompers) 4 6 Total Cost 7 8 o Total Revenue Profit
tudy Tools ns ess Tips ess Tips ack Back to Assignment Attempts 3. Profit maximization using total cost and total revenue curves Suppose Madison operates a handicraft pop-up retail shop that sells rompers. Assume a perfectly competitive market structure for rompers with a market price equal to $20 per romper. The following graph shows Madison's total cost curve. Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for rompers for quantities zero through seven (including zere and seven) that Madison produces. TOTAL COST AND REVENUE Dollars) EPE 150 125 100 TH M Average/3 25 2 QUANTITY (Rompers Total Cost Total Revenue ProM
For each of the following scenarios, identify the number of firms present, the type of product, and the appropriate market model. Select the matching entry for each dropdown box in the following table. Scenario Number of Firms Type of Product Market Model A large city has lots of small shops where people can buy sweaters. Each store's sweaters reflect the style of that particular store. Additionally, some stores use higher-quality yarn than others, which is reflected in their price. There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can. While pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who has passed inspections can acquire and maintain their license. Only three airlines fly from San Francisco to Medford, Oregon. No new airline will enter…
The perfectly competitive firm and market price (single commodity market model). P=$3 =MR=AR Q=5000 Market Firm 2:30 / 2:44 * YouTube E3 CC 71. In the last video, what is the price the competitive firm receives for each bushel of apples it sells? Select one: a. $2 b. $3 c. $4 d. $5
Questions 1-3 use the following case to determine a way to take a single product, like toilet and bundle it in such a way as to extract all of the profit at the time of the initial sale. You go to CostCo or Walmart and you see paper towel sold in a bundle and you wonder how the retailer can make any money. You do a little research and you find that the demand for paper towels is depicted by the following demand curve and marginal cost: P=$2.20 (1/10)*Q MR-$2.20 (2/10)*Q MC 0.20 where P is the price of paper towels, MC is the marginal cost of paper towels, MR is the marginal revenue of paper towels and Q is the quantity of paper towels. So you decide to try two different pricing strategies: 1) sell one roll at a time and 2) use multipart pricing to sell a bundle. Given the results for the pricing strategies in problems 1 and 2, what is your pricing decision and why?
Entrepreneurs shift capital and labor across industries in pursuit of profit. Let’s look at this a little more closely. Suppose there are two industries: a high‑profit industry, Industry H, and a low‑profit industry, Industry L. Answer the following questions about these two industries. a. If the two industries have similar costs, then what must be true about prices in the two industries? Prices in Industry H and Industry L must be equal. must be lower in Industry H than in Industry L. must be higher in Industry H than in Industry L. in Industry H and Industry L cannot be compared.
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

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Describe the main differences between each of the four market structures we've studied in class. Be sure to comment on how the characteristics of the market/industry structures affect economic efficiency as well as firms' ability to earn economic profit in the long run.