Explain, using graphs, how the equilibrium in an industry in the Krugman's model changes when the size of the market increases (perhaps by economic integration).
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Explain, using graphs, how the equilibrium in an industry in the Krugman's model changes when the size of the market increases (perhaps by economic integration).
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Equilibrium in an industry in the Krugman's model changes when the size of the market increases. It is explained with the help of a figure as shown below.
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- 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. Number of Scenario Firms Type of Product Market Model There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs. 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. In a large city, two taxi companies own all the licenses that the city will grant to operate taxis. Consumers don't care which cab…Assume that private schools form a competitive industry. Suppose the demand for private schools rises because the government initiates a new program to offer income tax rebates to parents with children in private schools. In the short run, what happens to the number of students in private schools? What happens to the profits of each school? Answer by making two clearly labeled graphs (industry and firm-level) with clear explanations.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 There are hundreds of colleges and universities that serve millions of college students each year. The colleges vary by location, size, and educational quality, which allows students with diverse preferences to find schools that match their needs. There are hundreds of high school students in need of algebra tutoring services. Dozens of companies offer tutoring services; parents view the quality of the tutoring at the different companies to be largely the same. In a small town, there are four providers of broadband Internet access: a cable company, the phone company, and two satellite companies. The Internet access offered by all four providers is of the same speed. Almost…
- Suppose the market of surgical mask in Country D is competitive. а. Assume the market of surgical mask in Country D operates at her long run equilibrium. Draw side-by-side diagrams to show the long run equilibrium conditions for a typical firm producing surgical masks and the market for surgical masks. Label your diagrams clearly. b. Suppose a trade war happens and many other countries refuse to buy surgical masks from Country D. Making use of your diagram in (a), explain its short run effects on the equilibrium price and quantity in the market of surgical masks in Country D, and the output and the profit/loss of a typical firm producing surgical masks in Country D.hey i was doing my econ homeowrk to study for my test and I wanted help with number one just to be sure that i am doing it correctly. thanksPlease graph four market models. Change the designated schedule in each model and indicate the outcomes in the answer key.
- In part II, we zoom in on the individual firm in the Australian wheat market, to consider production, costs, and profits. Specifically: a) Start with a model of the situation before the crisis in Ukraine. Draw a model of a representative individual firm in the market for wheat, i.e. an Australian wheat farmer who is a price-taker in the global market for wheat, in long-run equilibrium. Comment on the assumed market structure. Show and explain the amount of wheat the farmer will produce to the market, and explain revenue, costs and profits. b) Now consider the short-run effects of the conflict in Ukraine from the perspective of the Australian wheat farmer. We will do this in two sequences, in the interests of clarity. i. First, consider the increase in the world price. Show how this affects quantity produced, costs, revenue and profit for the farmer. ii. Second, consider the increase in the price of fertiliser. Show how this now affects the quantity produced, costs, revenue and profit…In the one period model, list the requirements for a competitive equilibrium, and explain why each is important.True or false: In a perfectly competetive market, when AVP<P<ATC, a firm will not produce any output to minimize its costs. Explain why using a graph.
- 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 producersIn recent years in the brewing industry, a couple of large firms that have historically had most of the beer sales (Anheuser-Busch and Miller) have faced competition from many small “micro” brands. In terms of the continuum of competition, how would you explain this change?Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of why or why not. Is the market competitive? Scenario In a college town, students choose between two providers of wireless internet access. All student housing is wired for both companies, and the internet service offered by both providers is equally fast and reliable. Several online retailers sell vintage crewneck sweatshirts. Each shop's crewnecks are characterized by the style of that particular brand. In addition, some producers use only cotton while others use a polyester blend, a distinction reflected in the price of the crewnecks. There are thousands of ninth and tenth graders in need of geometry tutoring services in San Francisco. Of the twenty or so companies in town currently offering geometry tutoring, parents of high schoolers view the quality of each individual tutoring service to be about the same. The government grants a patent to a pharmaceutical…
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