Which of these would be associated with perfect competition in a market?Question 7 options:a)a market in which firms sell their product at the market equilibrium priceb)a market in which firms are impacted significantly by the actions of the other firmsc)a market with many sellers, with each producing a similar though not identical version ofa productd)a market with high costs of entry into the industryThe long-run industry supply curve iselastic in the long run.Question 14 options:a) flatter; moreb)c)d)steeper; moreflatter; lesssteeper; lessA price taker is a firm that:Question 17 options:a)b)c)has no control over the market price.has the ability to control the price it charges.takes the maximum price that each and every consumer is willing to pay.d) takes bribes.than the short-run industry supply curves because supply isFor a perfectly competitive firm, total revenue is equal to:Question 20 options:a)b)d)marginal revenue x quantity.marginal cost x quantity.the market price.total revenue x quantity.

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Which of these would be associated with perfect competition in a market? Question 7 options: a) a market in which firms sell their product at the market equilibrium price b) a market in which firms are impacted significantly by the actions of the other firms c) a market with many sellers, with each producing a similar though not identical version of a product d) a market with high costs of entry into the industry

Which of these would be associated with perfect competition in a market? Question 7 options: a) a market in which firms sell their product at the market equilibrium price b) a market in which firms are impacted significantly by the actions of the other firms c) a market with many sellers, with each producing a similar though not identical version of a product d) a market with high costs of entry into the industry

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. The cost function for any potential firm in a manufacturing industry is C(y) = 2+ 8y + 2y? (if a firm exits the industry, then its cost is zero). The inverse market demand function is given by P(y) = 100 – 2y. (b) If the industry allows free entry and all the firms are price takers, what is the number of firms in equilibrium?
Exercise 2.9 Firms in a competitive industry have production costs C(q)=q²+20q+100 and the industry demand is QD(P)=1200-10P; a) Find the price, the production of the representative company, the production of the industry and the number of companies that will be part of the industry it in the long-term equilibrium. b) Suppose that demand shifts to Qº'(P) = 1.800 - 12P. Find the price, quantity and profits of companies in the short term. Calculate the social welfare corresponding to this equilibrium. (c) Calculate the final long-term equilibrium. Describe the adjustment process in a graph.
4. Consider a market where every firm and every potential entrant has the iden- tical cost function C(q) = 3q³-6q² +6q. (a) Find the firm's inverse supply function. (b) Suppose the market demand function is given by QP (P) = 20-2P. Find the long-run equilibrium price, quantity, and the number of firms. (c) Suppose the demand function suddenly becomes perfectly inelastic at quan- tity Q = 7. Find the long-run equilibrium price, quantity and the number of firms. (d) Suppose the demand becomes perfectly inelastic at quantity Q = 7, and the government decides to collect a per unit tax t = 4 from the producers for every unit of the good they sell. Find the long-run equilibrium price, quantity and the number of firms.
Feedback Imagine that the flat-screen TV market is made up of one large firm that leads the industry and sets its own price first, and another firm that follows the leader when deciding its own profit-maximizing strategy. The leader has a cost function of c₁ (91) = 5q1, and the follower has a cost function of CF (ar) = 4, where Q =q₁ + qr. Total market demand for flat-screen TVs is given by the function Q = 250.00-2p. Calculate the following values: Leading firm's production: q = Follower firm's production: qp = Equilibrium price: p= $49.37 9 OF 16 QUESTIONS COMPLETED 118.33 32.92 (Round to two decimals if necessary.) (Round to two decimals if necessary.) (Round to two decimals if necessary.) See Hint 4 VIEW SOLUTION SUBMIT ANSWER
Q4) Answer the following, providing a graphical illustration along with your answer where necessary: a) What is the profit maximising condition? b) Explain what is meant by abnormal profit? What is the adjustment process from short-run abnormal profit to long-run equilibrium in a perfectly competitive market? c) Please find below Pricing options for firm A and B, along with individual payoffs (Firm A's payoff/Firm B's payoff) Firm A Price £2 Price £1 Assume you are the pricing manager at Firm A; i) ii) Price £2 £10,000/£10,000 £12,000/£5,000 Firm B Price £1 £5,000/£12,000 £6,000/£6,000 What is your payoff for a 'maximin' strategy? What is your payoff for a 'maximax' strategy? Does a dominant strategy exist within this prisoners' dilemma?
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $26, $14, $10, $5, and $3 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $10, $14, $26, $34, and $42 (one buyer at each price). For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied. Price Quantity Demanded Quantity Supplied ($ per widget) (widgets) (widgets) $3 $5 $10 $14 $26 $34 $42 In this market, the equilibrium price will be per widget, and the equilibrium quantity will be widgets.
Question 15 (1 point) Suppose you are an analyst for the Coca-Cola Company. An individual's inverse demand for Coca-Cola is estimated to be P = 98 - 4Q (in cents). If Coca-Cola is produced according to the cost function C(Q) = 1,000 + 20Q (in cents), compute the surplus consumers receive when Coca-Cola charges the optimal block price. %3D $11.52 (1,152 cents) $0 $576 (57,600 cents) $1,152 (115,200 cents)
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Refer to the figure above. The competitive market player will have $____ of profits. A)0 B)100 C)1800 D)4050