#2 2. A perfectly competitive firm is said to face a perfectly elastic demand curvea. List 2 reasons why the price elasticity is so high under perfect competition (twocharacteristics of perfect competition):b.List two examples of different types of barriers to entry (where only one can bedependent on government enforcement):

Solution-a) Many Buyers and Sellers: In a perfectly competitive market, there are numerous buyers…

Answered: 2. A perfectly competitive firm is said…

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 4QFR

See similar textbooks

Similar questions

If you were developing a product (like a web browser) for a market with significant barriers to entry, how would you try to get your product into the market successfully?
How is monopoly different from perfect competition?
How is the perceived demand curve for a monopolistically competitive film different from the perceived demand curve for a monopoly or a perfectly competitive film?
A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?
E . Why is the marginal revenue of a perfectly competitive firm equal to the market price?xplain three reasons why monopolies arise
a. The perfectly competitive firm exhibits resource allocative efficiency (P = MC), but the single-price monopolist does not. What is the reason for this difference?b. Explain three reasons why monopolies arise. c. Why is the marginal revenue of a perfectly competitive firm equal to the market price? d. Would a perfectly competitive firm produce if price were less than theminimum level of average variable cost? Why?
A difference between a perfectly competitive industry and a monopoly is that A. a firm in a perfectly competitive industry can perfectly price discriminate but a monopoly cannot. B. only monopolies have an incentive to maximize profit. C. in the long run, firms in a perfectly competitive industry make zero economic profit and a monopoly can make an economic profit. D. a barrier to entry protects perfectly competitive firms in the short run and protects a monopoly in the long run. E. perfectly competitive firms can have a public franchise.
1 )The entry of firms into a competitive industry causes the supply curve toa. increase its slope.b. decrease its slope.c. move farther toward the right.d. move toward the left. 2) The nation listed below whose economy currently comes closest to a free market isa. North Korea.b. Germany.c. Venezuela.d. Cuba. 3) To be a natural monopoly, a firm musta. control an essential natural resource input.b. be very large.c. have a continuously rising average cost curve as output rises.d. have falling average costs over a substantial range of total market demand. also see attached figure 10-1 please help me understand, thanks! The Red Cross is virtually the only operator of blood banks in the United States. In Figure 10-1 are the demand and cost curves facing the Red Cross blood bank. If the Red Cross were to set price and quantity at the level that it would obtain in the long run in a competitive industry, how much blood would it sell?a. OAb. OBc. ODd. OC
1.Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using diagram and also explain the condition thoroughly. a. P=14: AC=16: AVC=10 and O=40 b. P=10; AC=10; AVC=8 and Q=20 2.Show using the same dagram for both monopoly and porfect competition make sructure the consumer surplus of each market and how tlirisuhia secking lbe incrme is destributed and the 10 marks deadweight loss expetienced. Explaineyour Owa words.
Compare and contrast the decision-making processes of a competitive firm versus a monopoly firm. a. The difference between C and M markets in terms of the (homogeneity or uniqueness of product, barriers to enter and number of firms). b. You must point to the difference in the demand curve for a C firm and that for a M firm. c You must refer to the long run profit (or not) of the C as well as M firm. d. You must point to whether C and M firms are efficient or NOT. Graphs are welcome, not manadatory.
Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly? Select one: a. Each must lower its price to sell more output. b. Each sets a price for its product that will maximise its revenue. c. Each maximises profits by producing a quantity for which marginal revenue equals marginal cost. d. Each maximises profits by producing a quantity for which price equals marginal cost. e. Each minimises average total cost by producing a quantity for which price equal average revenue
Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Price 51 48 45 42 Quantity 3 4 5 6 7 8 Total Revenue 153 192 225 252 273 288 Marginal Revenue A. Comcast should produce 6 units in the short run and shut down in the long run. O B. Comcast should shut down in the short run and produce 6 units in the long run. C. Comcast should shut down in the short run and in the long run. O D. Comcast should produce 6 units in the short run and in the long run. O E. None of the above. 39 33 27 21 15 Total Cost 108 129 153 180 210 243 Marginal Cost - 21 24 27 30 33 39 36 Suppose the local government imposes a $73 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $45.) Suppose that the flat per-month tax is replaced with a tax on the firm of $12 per cable subscriber. (Assume that Comcast will sell…

Recommended textbooks for you

Microeconomics A Contemporary Intro

Economics

ISBN:

9781285635101

Author:

MCEACHERN

Publisher:

Cengage

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Economics: Private and Public Choice (MindTap Cou…

Economics

ISBN:

9781305506725

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Microeconomics A Contemporary Intro

Economics

ISBN:

9781285635101

Author:

MCEACHERN

Publisher:

Cengage

Principles of Economics 2e

Economics

ISBN:

9781947172364

Author:

Steven A. Greenlaw; David Shapiro

Publisher:

OpenStax

Economics: Private and Public Choice (MindTap Cou…

Economics

ISBN:

9781305506725

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Microeconomics: Private and Public Choice (MindTa…

Economics

ISBN:

9781305506893

Author:

James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:

Cengage Learning

Essentials of Economics (MindTap Course List)

Economics

ISBN:

9781337091992

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Economics:

Economics

ISBN:

9781285859460

Author:

BOYES, William

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS