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- May and Raj me the only two growers who provide organically grown corn to a local grocery store. They know that if they cooperated and produced less corn, they could raise the price of the com. If they work independently, they will each earn 100. If they decide to work together and both lower their output, they call each earn 150. If one person lowers output and the other does not, the person who lowers output will earn $1 and the other person will capture the entire market and will earn 200. Table 10.6 represents the choices available to Mary and Raj. What is the best choice for Raj if he is sole that Mary will cooperate? If Mary thinks Raj will cheat, what should Mary do and why? What is the prisoners dilemma result? What is the preferred choice if they could ensure cooperation? A = Work independently; B = Cooperate and Lower Output. (Each results entry lists Rajs earnings first, and Marys earnings second.)What is the relationship between product differentiation and monopolistic competition?Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market for this case was the market for intercity bus service. Another possible definition was the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.' Which definition do you think the bus companies preferred, and why?
- Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?If you were developing a product (like a web browser) for a market with significant barriers to entry, how would you try to get your product into the market successfully?Suppose that a particular industry has a four-firm concentration ratio of 45 and a Herfindahi index of LS40. Most ikety, this industry would ochieve Mutipie Chaice both productive efficiency and allocative etficency wllocative efficency but not productive effcency nether productive efficiency nor allocative efficiency productive efficiency but not allocative efficiency
- What are the necessary conditions for economic efficiency? In what 4 situations might a market fail to achieve ideal economic efficiency?< The accompanying table shows the total daily output for a firm producing specialty cakes and operating with a fixed amount of capital. The cost of labour is $100 per unit per day and the fixed cost of the capital is $2000 per day. Click the icon to view the table. a. Using the information provided, compute all of the short-run costs for this firm and complete the table. Remember to record the marginal costs between the rows indicating total cost. Complete the third, fourth, and fifth columns of the table. Units of Labour Total Output (per day) (per day) 100 20 40 60 80 100 120 140 40 60 300 80 800 1370 1570 1630 1670 300 800 TFC $2000 1370 $ 2000 $ 2000 TVC $2000 Complete the last four columns of the table. Units of Labour (per day) Total Output (per day) 20 100 $ 4000 $ 6000 $ 2000 $ 8000 $2000 $10000 TFC TC $ 4000 $6000 TVC $ 8000 2000 $12000 $14000 $10000 $2000 $14000 $16000 $12000 TC MC MC $10 4 $3.50 $10 4 AFC AFC $20 $2.5 AVC $6.67 $ 13.33 $ 1.46 AVC $20 $7.5 $5.84 ATC ATC $40…Please correct answer and don't used hand raiting
- Don't answer by pen paper and don't use chatgpt otherwise we will give dounvoteA trader wants to open an oil shop in the Greater Jakarta area with a choice of the Bogor, Jakarta areaor Bekasi. Each of these area options has a local supplier providingThe price quote for the oil is detailed in the table below. area fixed cost variabel cost Bogor 5.500.000 55.046.00 Jakarta 11.500.000 35.500.00 Bekasi 21.500.000 15.500.00 Question:A. What is the large volume that must be met in order to get economic value per area? Define the volume range for each area.b. Sketch a crossover diagram that illustrates these conditionsc. If in the end the merchant wants to sell as many as 600 cans at a selling price of Rp.60,000 per can, calculate the profit from each area. Where did the trader determine his location?a The firm represented here produces an identical product (bagels), in which entry and exit into its market is very easy. If the current equilibrium price is $1.80, the firm will produce. charge a price of c. Its profit or loss will be price of bagels fall to $1.00. Now, the firm will produce. equilibrium price of $1.00 will be. the firm will produce. bagels. b. The firm will d. Suppose the equilibrium bagels. e. Its profit or loss at the bagels. f. Suppose the equilibrium price of bagels fall to $0.25. Now, g. Its profit or loss at the equilibrium price of $0.25 will be The firm represented here produces an identical product (bagels), in which entry and exit into its market is very easy. Total Output/Day Cost 0 $1.00 1 2.50 2 3.50 3 4.20 4 4.50 5 5.20 6 6.80 7 8.70 8 10.70 9 13.00
