Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 18, Problem 2SPPA
To determine

To explain:

The varying barriers to entry in the automobile industry and the way combination of market demand and economies of scale has changed the structure of the automobile industry.

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What could McDonald’s do to create barriers that would prevent others from entering the markets and would make it harder for remaining hamburger shops to remain in the market?   The third question assumes the previous 2 questions I submitted were answered. in order to answer this question, you need to know the marginal revenue and marginal costs. + how much should McDonald’s charge for its hamburgers to maximize profit?     McDonald’s  Quantity    Variable Costs  Fixed Costs  Total Costs  Price  Total Revenue  Profit  Marginal Costs  Marginal Revenue  1,000  500  5,000  5,500  4.00  $4,000  -1,500        2,500  1,000  5,000  6,000  3.50  $8,750  2,750    0.33  3.17  4,000  1,400  5,000  6,400  3.00  $12,000  5,600  0.27  2.17  9,000  2,400  5,000  7,400  2.00  $18,000  10,600    0.20  1.2  13,000  3,400  5,000  8,400  1.00  $13,000  4,600    0.25  -1.25…
1. Do you believe that Netflix will become or is already a monopoly? What are some of the monopoly traits that would make you believe it will soon be or is already a monopoly? 2. In a competitive business environment, firms are said to be break-even in the long run. What does this exactly mean, why does it happen? Does this long-run break-even outcome apply to all market structures, and why?
Use the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 10 90 15 80 20 70 25 60 30 50 35 40 900 1200 1400 1500 1500 1400 675 825 1025 1250 1500 1850 What is marginal revenue when quantity is 25? What is marginal cost when quantity is 15? If this firm is a monopoly, at what quantity will profit be maximized? If this is a perfectly competitive market, which quantity will be produced? $ 20 $ 90 Incorrect quantity: 6 Incorrect quantity: 8 Incorrect
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