EBK ECON MICRO
6th Edition
ISBN: 9781337671828
Author: MCEACHERN
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 2P
To determine
The long-run
Concept Introduction:
Perfect Competition- A market is said to be perfectly competitive when it has a virtually infinite number of buyers and sellers selling a homogenous product with free entry into and exit from the market. The buyers and sellers have perfect knowledge about the products and markets and there are no selling and transportation costs. The sellers are price takers and they face a perfectly elastic
The monopolistic firm- A form of imperfect competition where there are a very large number of buyers and sellers in the market. The products are nearly but not perfectly homogenous, i.e. there is product differentiation. The entry and exit of firms are free. Unlike the perfect competition, the firms have selling costs and imperfect knowledge marks the structure of the market. The market is a deviation from the ideal but not as competitive as the oligopoly or duopoly market. The demand curve facing the firm here is high though not perfectly elastic. It is a downward sloping demand curve.
Marginal Revenue (MR) - The revenue earned by a firm by selling one additional unit of the output is the marginal revenue of the firm.
Marginal Cost (MC) - The cost incurred by a firm in the production of one more unit of output is the marginal cost of the firm.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Introduction and Problem Statement
This report examines …
[Include a statement of the main problem in the case.]
Background
[Detailed company/case background tying directly to the context of the specific case study. Summarize data from the case scenario that is pertinent to solving the stated problem.]
Analysis
[Thoroughly analyze the questions asked of you here as well as the main questions suggested within the case study.]
Alternatives and Evaluation
[This section should list some options available as solutions and discuss the pros and cons of each alternative.]
Recommendations
[This section should suggest the recommended solution and validation for this selection.]
Action Plan
[This section should provide a step-by-step actionable guide to achieve the recommended decision divided by short and long term activities.]
Conclusion
[Concisely summarize the case options, recommended decision and future predictions ofr the company.]
References
Include any references used.…
What is Bitcoin?
How important is it to businesses and individuals?
How does it cause environmental damage and is that damage worth continued uses of Bitcoin?
While visiting and chatting with an old friend who lives in a rural area, a man's teenage daughter joins the conversation and shared that she wants to work on a farm after she graduates from college and that farming is her passion. She shared the graph that follows from the Bureau of Labor Statistics that she recently obtained that shows the average wage (salary) by profession. She was very confused about why different professions pay people different wages. She was expecting the pay rate for people who work in the farming industry to be paid more than other “unnecessary” professions. While sharing the data with you, she asked the following questions:
Why do workers in business and financial operations get paid more than those who work in farming and health care? After all, farmers make food and health care workers help people’s health.
I don’t get it, but who decides how much people in certain professions get paid? I mean who decides how much I should be compensated for my work?
Why…
Knowledge Booster
Similar questions
- Instructions:- Need to do in assembly language. Submit your DOC file with all explanation, also submit your code file. no chatgpt pls no plagirism plsarrow_forward'producing more goods and services lowers environmental quality' is not the correct answer.arrow_forwardA movement along an economy's production possibility frontier with output on one axis and environmental quality on the other shows that: technological improvements may lead to a sustainable economy with higher consumption in the future and better an improved environment. producing more goods and services lowers environmental quality. producing more goods and services raises environmental quality. a high use of natural resources to produce more goods and services today may lead to an unsustainable economy with lower consumption in the future.arrow_forward
- Don't used Ai solutionarrow_forward= - 12. Recall the market setting in Question 3, where the demand curve is P = 10 – 2Q, and mar- ginal cost is c 2. Now suppose that two firms, numbered 1 and 2 compete over this de- mand curve. They produce quantities Q₁ and Q2, hence total output is given by Q = Q1+Q2. The best response function of firm 1 to firm 2, labeled Q₁ = B₁ (Q2) is given by (a) 2-2Q2 - 4 (b) 2-Q2 (c) 2 – 02 Q2 Q2 (d) 2- (e) 2-Q 4 13. In the previous question, the Cournot-Nash equilibrium quantity produced by each firm is (a) 1 (d) 2 (b) 3 2 (e) 52 (c) 43 3arrow_forward2. Sweet taxes make the world sweeter! According to a study conducted by the World Health Organization, noncommunicable diseases, such as heart disease, cancer, diabetes, chronic lung disease, and stroke, are the main leading causes of deaths—almost 90% worldwide. These diseases also have social and economic costs. Cardiovascular diseases, for example, cost the economy of the European Union about 210 billion Euro in 2015. One method some European countries adopted to try to reduce the death rate from those leading causes was to impose high taxes on sugar-sweetened beverages. Assume that your next president loves the idea of sugar taxes and proposes a 30% tax on all sugary beverages in the country. And assume you are a marketing manager at a company that makes sugary soft drinks. The owner of the company heard the news and came to you for advice and asked you the following questions: So, buddy, should I be worried about our business if this sugar tax policy is implemented? Why? How do…arrow_forward
- 3. The world is more beautiful with just a bit of makeup. Your friend Nora is an artist, and she loves makeup, so she decided to become a beautician. She recently began recording videos of herself applying makeup to others and posting those videos on social media. She typically charges about $250 for full facial makeup for special occasions like weddings, engagement parties, graduation parties, and so forth. Her work is great, and her videos made her famous on social media outlets, and now she has over 500,000 followers. The demand for her services has risen. People have to book her months in advance if they want her to do their makeup. She was excited about her success, and she wants to take advantage of it, so she wants to learn more about her opportunities and has texted you the following questions: Now people want my services so badly, do you think I should raise my prices from $250 to $500 to make more revenue (sales)? Or should I reduce my price to $150? Please educate me on…arrow_forwardDon't used Ai solution and hand raitingarrow_forwardDiscussion - Why are planning and organizing important to an organization's success? Requirement: Include Introduction, Body, and Conclusion. Your initial Discussion posting should be at least 150 words in length. Be sure to include a related Title, at least two different citations and references to support your statementarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning