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How does competition between capitalist firms trigger tendencies for overproduction?
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- How an increase in the market demand may reduce the importance of economies of scale as a barrier to entry?How are the elements of competition force affecting the willingness to pay for a product? What are the components Apple sources from Japan for iPhone?Distinguish between technical efficiency and economic efficiency
- explain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is rising ?What is the maximum weekly profit? What is the wholesale price per sleeping bag that should be charged to realize the maximum weekly profit?What does the rise of alternative products like Puff Bar tell you about the overall role of market forces?
- What is the average and marginal cost of gumball productionAllocative efficiency is an economic concept regarding efficiency at the social or societal level. It refers to producing the optimal quantity of some output, the quantity where the marginal benefit to society of one more unit just equals the marginal cost. The rule of profit maximization in a world of perfect competition was for each firm to produce the quantity of output where P = MC, where the price (P) is a measure of how much buyers value the good and the marginal cost (MC) is a measure of what marginal units cost society to produce. A monopolist... Group of answer choices Would try to achieve allocative efficiency to compete with the other firms who own a larger market share. Will prefer to operate where price < average total cost. Has no motivation to operate at an output level where P=MC, once a barrier is in place and no longer has to worry about competition. Will experience greater profits if it sets prices equal to average total cost.Under what conditions do economies of scale serve as an entry barrier? Do the same conditions apply to learning curves?