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- Which of the following are perfectly competitive markets? Market Tomato Growing Coffee vendor Manufacturing computers Constructing new homes Perfectly Competitive? Yes Yes No Yes Number of Firms Few Many Few Many Type of Product Identical or Differentiated Identical Differentiated Identical Ease of Entry High High Low HighExplain how market competition affect the mark –up in price setting and the fraction of the marginal product that the firm retains as profitWrite down the attributes of a perfectly competitive market (200 words).
- The market for smoothies is perfectly competitive and the market demand schedule is in the first two columns in the below table. Each of the 100 producers of smoothies has the costs given in columns 3- 6 when it uses its least-cost plant. What is the market price of a smoothie? $5.25 $4.25 $2.91 $2.20 Market demand schedule Quantity demanded (smoothies per hour) 1,000 Price (dollars per smoothie) 1.90 2.00 2.20 2.91 4.25 5.25 5.50 950 800 700 550 400 300 Output (smoothies per hour) 3 4 5 6 7 8 9 Producers of smoothies Costs Marginal cost (dollars per additional smoothie) 2.50 2.20 1.90 2.00 2.91 4.25 8.00 Average variable cost (dollars per smoothie) 4.00 3.53 3.24 3.00 2.91 3.00 Average total cost 3.33 7.33 6.03 5.24 4.67 4.34 4.25 4.44Suppose you are a seller in a perfectly competitive market, and you are not happy with the existing selling price of your product, would you raise the price even by a few centavos? explain your answerA Perfect Competition has [ Select ] producer(s), products are [ Select ] , it is [Select ] to enter the market, and producers in a perfect competition have [ Select ] control over prices.
- You are given the following information for a producer of organic grommets in a perfectly competitive market. TFC $8 Market price = $9 Quantity 1 2 3 4 5 6 MC ($) 8 7 6 8 10 13 The marginal cost of production appears in the table above. What is the profit-maximizing output? Is the firm making a profit or loss? How much? Output: (Click to select) $The market for paperback detective novels is perfectly competitive. We have two types of book publishers in the market- Small Press and Large Press. Each Small Press publisher's supply curve is given by P=76+5Q. Each Large Press publisher's supply curve is given by Q=2P-24 Suppose there is only 1 publisher of each type. What is market supply when market price is $60? Enter a number only. Remember, fractions of goods are possible.Farmer Smith grows wheat. The average total cost and marginal cost of growing wheat for an individual farmer are illustrated in the graph to the right. 10- MC 9- ATC Suppose the market for wheat is perfectly competitive. If the market price is $8 per bushel, then to maximize profits, farmer Smith should produce thousand 8- Price bushels of wheat. (Enter a numeric response using an integer.) 4- 3- 2- 10 20 30 40 Quantity of wheat (bushels per month in 1000s) 50 60 70 80 90 100 Price and cost (dollars per bushel)
- Refer to the accompanying figure. If the market for doughnuts is perfectly competitive, then assuming this firm can earn enough revenue to cover its variable cost, it should produce: Price (S/doughnut) 0.35 p 0.30 0.25 0.20 0.15 0.10 0.05 0 0 10 20 30 40 50 60 Marginal Cost 70 80 90 Quantity (doughnuts/day) Average Total Cost 50 doughnuts per day. the quantity of doughnuts at which average total cost is minimized. the quantity of doughnuts at which average total cost equals the market price. the quantity of doughnuts at which marginal cost equals the market price.Which market offers higher consumer surplus and why? The perfectly competitive firm or the monopoly firm?The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=305-2P Suppose we have identical book publishers, and each individual book publisher's Supply curve is given by P=4+2Q. We have 13 book publishers in the market. What is the market PRICE?. Enter a number only.