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

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

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

In 1980, in response to the Soviet invasion of Afghanistan, President Jimmy Carter imposed a grain embargo prohibiting the sale of American grain to the Soviet Union. The Soviets adapted and got grain from elsewhere. The Chinese, in response to Trump’s tariffs, stopped buying U.S. soybeans, getting them instead from Brazil. There is little evidence that such embargoes put any real economic pressure on their targets. When a government embargoes the products of another country what other, potentially unintended and/or negative consequences could you imagine from that act? (100 words maximum)
Captain Catahoula and Bow Wow Wonder are two of the four firms in the dog food industry. Before they notify the Federal Trade Commission and the Department of Justice of their plans to merge, Captain Catahoula hires you to determine the concentration of this industry. Use the table to calculate the Herfindahl-Hirschman Index (HHI) for this dog food industry and then complete the sentence. Firm Bow Wow Wonder Waggin' Tails Mongrel Munchies Captain Catahoula HHI: Industry 10% 24% 26% 40% What is the HHI for this dog food industry?
The two key types of differentiation and supply side. Select one: True False - or ways to differentiate - can be separated between the demand
In 1939, the box office records set by Gone with the Wind and The Wizard of Oz proved to Hollywood studios that investing in Technicolor was worth every penny. Nevertheless, a reversal of fortune hit the film industry as the United States entered World War II. Wartime shortages made celluloid nitrate more costly, so Hollywood studios reverted to primarily black and white. The few Technicolor musicals released only recovered their production costs. The graph shows Metro-Goldwyn-Mayer's (MGM) production of Technicolor movies before World War II. Modify the graph to describe the wartime period for MGM. Assume that nothing changes except the items discussed in the question.
Suppose you have two types of users for your software: basic users and professionals. The value each group places on your basic program and your advanced program is given in the table below. Value of Product basic users Professionals basic program $65 $60 advance program $75 $150 You don’t know who exactly your basic and professional users are. How might you price your advanced program so that only your professionals by that version and you maximize profits? Group of answer choices $144 $150 $65 $75
The last four questions, not the first four.
Imagine a scenario in which the fashion industry is suffering from monopolistic price gouging and a dwindling demand (due to the existence of sweatshops and environmentally unfriendly business practices). A hypothetical situation such as this is likely to cause high unemployment in the fashion industry. What could the government do to correct this market failure? Including diagrams where/if appropriate)
6.2
Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of the table below shows the total amount of garbage (in tons) that each firm currently produces. The other rows of the table show the cost of reducing garbage produced by the first five tons, the second five tons, and so on. Elm Maple Oak Cherry Current production of garbage (in tons) 20 40 60 80 Cost of reducing garbage by first five tons $5,500 $6,300 $7,200 $3,000 Cost of reducing garbage by second five tons $6,000 $7,200 $7,500 $4,000 Cost of reducing garbage by third five tons $6,500 $8,100 $7,800 $5,000 Cost of reducing garbage by fouth five tons $7,000 $9,000 $8,100 $6,000 Cost of reducing garbage by fifth five tons $0 $9,900 $8,400 $7,000 Calculate the cost of requiring the Maple firm to reduce the weight of its garbage by one-fourth. Please format your answer as…
Oc
suppose the campus of a university with 1,000 students lies along a street which is one mile long. There are two restaurants that sell pizza by the slice, and they are located at opposite ends of the campus street. Each restaurant can produce a slice of pizza for $1.00 (marginal cost) and the quality of the pizza from the two restaurants is identical. After classes, each student would like to buy one slice of pizza (as long as it costs less than $5.00), but they are evenly distributed along the university campus street and each needs to choose which direction to walk to get pizza. They have a constant disutility of having to walk such that they are willing to pay $2.00 per mile to avoid walking. (You can ignore the presence of other restaurants and assume that students choose between only these two.) 1. If these restaurants simultaneously set prices to maximize profits, what prices will each restaurant set in equilibrium? (You don’t need to derive the equilibrium prices here if you are…
A four-firm concentration ratio measures what?