Step Two Respond to the following: Dunkin’ Donuts assumes you, like all the other locally-owned shops, will choose to close rather than compete and that they will have a monopoly on donut sales in your area. If they made that assumption, What quantity of donuts would they be most likely to sell to maximize profits? What price would they charge per donut? Review the 9.3 Donut Shop and Perfect Competition assignment. How do Dunkin’ Donuts’s production and pricing compare with the production and pricing of your area’s donut shops when there was a perfectly competitive market? What could Dunkin’ Donuts do to create barriers that would prevent others from entering the market and make it harder for you to remain in the market? If they take those measures, what could you do to remain in the market?
Step Two Respond to the following: Dunkin’ Donuts assumes you, like all the other locally-owned shops, will choose to close rather than compete and that they will have a monopoly on donut sales in your area. If they made that assumption, What quantity of donuts would they be most likely to sell to maximize profits? What price would they charge per donut? Review the 9.3 Donut Shop and Perfect Competition assignment. How do Dunkin’ Donuts’s production and pricing compare with the production and pricing of your area’s donut shops when there was a perfectly competitive market? What could Dunkin’ Donuts do to create barriers that would prevent others from entering the market and make it harder for you to remain in the market? If they take those measures, what could you do to remain in the market?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Step Two
Respond to the following:
Dunkin’ Donuts assumes you, like all the other locally-owned shops, will choose to close rather than compete and that they will have a monopoly on donut sales in your area. If they made that assumption,
What quantity of donuts would they be most likely to sell to maximize profits?
What price would they charge per donut?
Review the 9.3 Donut Shop and Perfect Competition assignment. How do Dunkin’ Donuts’s production and pricing compare with the production and pricing of your area’s donut shops when there was a perfectly competitive market?
What could Dunkin’ Donuts do to create barriers that would prevent others from entering the market and make it harder for you to remain in the market?
If they take those measures, what could you do to remain in the market?
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