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Identify the market
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Explanation of Solution
Figure-1 illustrates the market demand curve and cost curve of PC chips producers, Intel, and AMD below:
In figure-1, the x-axis shows the quantity produced by both firms per year and the y-axis shows the price and costs. There are only two producers for PC chips. Thereare no legal barriers to the entry of new firms. Thus, the market for PC chips can be considered as a market for the natural oligopoly than a natural duopoly. However, the given demand curve and the
Duopoly: A duopoly is an imperfect market situation, wherein only two sellers produce the goods and services.
Average total cost: The average total cost refers to the cost per unit. It is the summation of the
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Chapter 15 Solutions
Microeconomics (13th Edition)
- check if my answers are right for the questions and draw the graphs for me pleasearrow_forwardcheck my answers and draw the graph for me.arrow_forwardThe first question, the drop down options are: the US, Canada, and Mexico The second question, the drop down options are: the US, Canada, and Mexico The last two questions are explained in the photo.arrow_forward
- Respond to isaiah Great day everyone and welcome to week 6! Every time we start to have fun, the government ruins it! The success of your business due to the strong economy explains why my spouse feels excited. The increase in interest rates may lead to a decline in new home demand. When mortgage rates rise they lead to higher costs which can discourage potential buyers and reduce demand in the housing market. The government increases interest rates as a measure to suppress inflation and stop the economy from growing too fast. Business expansion during this period presents significant risks. Before making significant investments it would be prudent to monitor how the market responds to the rate increase. Business expansion during a decline in demand for new homes could create financial difficulties.arrow_forwardPlace the labeled CS to represent the new consumer surplus in the market and the area labeled PS to represent producer surplusarrow_forwardNot use ai pleasearrow_forward
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
- Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
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