Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 9, Problem 2P
To determine
Barrier to the entry of new firm and the ways in which they block the new firms from the market.
Concept Introduction:
Economies of scale refer to the benefit achieved by the big entity over the small entity, because of producing in much effective and cost saving way. Larger the entity, lower is the cost.
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(Table: Barrels of Oil 2) Refer to the table.
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Chapter 9 Solutions
Econ Micro (book Only)
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Similar questions
- Question 2 suppose Boeing is the only firm that produces aeroplanes in the world. The marginal cost of producing an aeroplace of Boeing is $50,000. The quantity demanded for Boeing's aeroplane is provided as bleow. Table1 -Demand schedule Price/ Quantity (thousands $) 40,000 /10 30,000 /30 20,000 / 60 10,000 / 100 1) calculate Boeing's total revenue and marginal revenue. How many aeroplances will Boeing Produce? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this linearrow_forwardExplain the table Output (Units) Total Revenue (£) Total cost (£) Profit (£) Marginal revenue (£) Marginal cost (£) Change in profit (£) 0 0 3 -3 - - - 1 6 5 1 6 2 4 2 12 8 4 6 3 3 3 18 12 6 6 4 2 4 24 17 7 6 5 1 5 30 23 7 6 6 0 6 36 30 6 6 7 -1 7 42 38 4 6 8 -2 8 48 47 1 6 9 -3arrow_forward(1.) Johnny Rockabilly has just finished recording his latest CD. His record company marketing department determines that the demand for the CD is as follows: Number of CDs Price $24 10,000 22 20,000 20 30,000 18 40,000 6 50,000 3 60,000 The company can produce the CD with no fixed cost and a variable cost of $12 per CD. a. Find total revenues and marginal revenues for each of the quantities. b. What quantity of CDs would maximize profit? What would the price be?arrow_forward
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- 7 Chapter Subject: Monopoly Should Amazon be regulated by the U.S. Government? Explain.arrow_forward2. The demand curve facing a price-taking firm Falero is one of more than a hundred competitive price-taking firms in Miami that produce medium cardboard boxes for moving. The following graph shows the daily market demand and supply curves facing the medium cardboard box industry. PRICE (Dollars per medium box) 4 2 20 Demand 18 Supply 16 14 12 10 0 0 1 2 3 4 5 6 7 8 9 QUANTITY OF OUTPUT (Millions of medium boxes) 10 (?) On the following graph, use the green line (triangle symbol) to plot the demand curve for Falero's medium cardboard boxes. (Hint: Remember that perfectly competitive firms must accept the given market price.) 20 18 16 14 12 Demand (?)arrow_forwardProblem 07-04 (algo) A firm has $1,700,000 in sales, a Lerner index of 0.56, and a marginal cost of $50, and competes against 800 other firms in its relevant market. Instruction: Enter your responses rounded to two decimal places. a. What price does this firm charge its customers? b. By what factor does this firm mark up its price over marginal cost? %24arrow_forward
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