Whether the given market is competitive or not.

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Answer 1

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

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In the following table, complete the third column by determining the quantity sold in each country at a price of $18 per toy train. Next, complete the fourth column by calculating the total profit and the profit from each country under a single price. Price Single Price Quantity Sold Price Discrimination Country (Dollars per toy train) (Millions of toy trains) Profit (Millions of dollars) Price (Dollars per toy train) Quantity Sold (Millions of toy trains) Profit (Millions of dollars) France 18 Russia 18 Total N/A N/A N/A N/A Suppose that as a profit-maximizing firm, Le Jouet decides to price discriminate by charging a different price in each market, while its marginal cost of production remains $8 per toy. Complete the last three columns in the previous table by determining the profit-maximizing price, the quantity sold at that price, the profit in each country, and total profit if Le Jouet price discriminates. Le Jouet charges a lower price in the market with a relatively elastic…

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Answer 2

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

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Answer 3

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Answer 6

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Answer 7

Chapter 6, Problem 1Q

To determine

Whether the given market is competitive or not.

Answer 8

Expert Solution & Answer

Explanation of Solution

It is given that a firm has 55 percent share of global market for its product and the remaining 147 firms account for 45 percent share of the global market for their products. The key feature of perfectly competitive market is that no seller or buyer is big enough to influence the price prevailing in the market.

Thus, in this question, the presence of one such big firm that can influence the market price due its large share in the global market. Hence, a large number of sellers in a market will not automatically ensure that it is competitive; it is the share of output that each firm produces that matters the most.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Perfectly competitive market is a market where there are many sellers and buyers of a particular good in the market. Hence, due to this large number, each seller and buyer has a very small share in changing the market output; therefore, the market price remains uninfluential by action of an individual seller or buyer.

Answer 12

Ch. 6 - Prob. 1Q Ch. 6 - Prob. 2Q Ch. 6 - Prob. 3Q Ch. 6 - Use a graph to show the relationship between the...Ch. 6 - Prob. 5Q Ch. 6 - Prob. 6Q Ch. 6 - Prob. 7Q Ch. 6 - Prob. 8Q Ch. 6 - Prob. 9Q Ch. 6 - Prob. 10Q

Whether the given market is competitive or not.

Whether the given market is competitive or not.

Explanation of Solution

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