Assignment 1 Q4

The graph above illustrates the electricity market. Consider market competition between firms where price is based on AR and select the most appropriate answer.   Question 5 options:   in the short-run, the demand curve and average revenue shift as other firms enter the market and increase competition.   in the short-run, the demand curve and average revenue shift as other frims leave the market and decrease competition.   in the long-run, the demand curve and average revenue shift as other frims enter the market and increase competition.   in the long-run, the demand curve and average revenue shift as other frims leave the market and decrease competition.

Consider the weekly market for gyros in a popularneighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (SMC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. (?) (0) 50 45 PRICE (Dollars per gro) 4.0 3.5 30 2.0 15 1.0 D 3.5 30 25 Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obcain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this change does not affect demand and that the marginal cost curve of the new…

What are the “monopolistic” and the “competitive” elements of monopolistic competition?Instructions:  In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.Similar to a monopoly, a monopolistic competitor: can restrict output to increase price (at least in the short run).checked can make profits or losses in the short run.unanswered faces a downward-sloping demand curve.unanswered faces high barriers to entry.unanswered makes economic profits in the long run.unanswered produces where P > MR = MC.unanswered has one seller.unanswered Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.Similar to a perfect competitor, a monopolistic competitor: faces a perfectly elastic demand…

A good example of a monopolistically competitive market would be?   Group of answer choices   1-The production of tennis balls where 4 firms dominate – Wilson, Dunlap, Spalding, and Penn   2-The 4 Companies that control over 80% of the US beef market: Tyson, Cargil, Swift, and National Beef Packing Company   3-Gas stations in Texas   4-Airlines

Question #3: Dell and Sony compete primarily by price. Each firm must choose either a high price or a low price simultaneously. Use the following information to create the profit matrix:1. If Dell and Sony both set high prices, Dell’s profit is $40 million and Sony’s profit is $35 million.2. If Dell sets high price and Sony sets low price, Dell’s profit is $25 million and Sony’s profit is $40 million.3. If Dell sets low price and Sony sets high price, Dell’s profit is $50 million and Sony’s profit is $10 million.4. If Dell and Sony set low prices, Dell has $20 million and Sony has $15 million.Please answer the follow questions:a. Does Sony have a dominant strategy? Dell? If so, which one?b. If Dell and Sony maximize their profits non-cooperatively, what is the Nash-equilibrium for this profit matrix?c. Instead, if Dell and Sony maximize their joint profits cooperatively, what is the equilibrium? Assume they keep their agreements.

You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following questions  F. How many burgers should you make if you want to optimize your profit?G. If you produce at the profit-maximizing level (or loss-minimizing level), what is theamount of economic profit (or loss) per burger will you make?H. Illustrate graphically BurgerDeals supply curve.

9 . Perfect Competition The market for peanut butter in Nutville is monopolistically competitive and in long-run equilibrium. The following graph shows the marginal-cost (MC) curve and the average-total-cost (ATC) curve for a peanut-butter-producing firm. It also shows the demand curve and marginal-revenue (MR) curve faced by a firm operating in a monopolistically competitive environment. On the following graph, use the black point (plus symbol) to show the profit-maximizing output and price for a typical firm operating in a monopolistically competitive environment. Demand Profit Max Under MC Perfect Comp. Outcome ATC MC MR Quantity Price, Cost, Revenue

Read the passage. Then answer the question that follows. The Denim Company is a producer of jeans, while Sheets to the Wind produces toilet paper. There is a significant level of competition in each of their particular markets, partly due to the fact that there are few barriers to entry. What type of market structures do these two businesses belong in? Omonopolistic competition O perfect competition O monopoly O oligopoly (? 56°E Cloudu

There are two groups of firms below.   Group 1: firms in the retail sector (e.g. Amazon;  Wal-Mart; Target; Kohl's; Sears; Macy's) Group 2: firms in the wireless services industry (e.g. Verizon; AT & T; Sprint/T-Mobile) (this about telecommunication services, not about the sale of phones) For each group determine and explain if the group is monopolistic competitive or an oligopoly. You need to specific for both in which market structure the firms operate) Then choose one of the firms from one group.  Using a Porter's analysis what are the threat to profitability?

Help me please

In recent years in the brewing industry, a couple of large firms that have historically had most of the beer sales (Anheuser-Busch and Miller) have faced competition from many small “micro” brands. In terms of the continuum of competition, how would you explain this change?

From the following graph, show the equilibriums under each scenario.   Market is in equilibrium at A under competitive market. (a) Show the equilibrium under monopoly. Call this point B (b) When the demand increased in the area due to immigration, show the new competitive equilibrium, call this point C. (c) Show the new monopolistic equilibrium with increased demand and call this point D.

Which of the following firms would most likely be part of a competitive market? Group of answer choices Tony’s brick oven pizza sells pizza by the slice in Georgetown. Abbot, a pharmaceutical company, is a major developer of insulin monitors. Marcus sells eggs that he collects from his hens to Safeway grocery. Central Gas & Electric, the single supplier or electricity.

pic 1 :  A small town is served by many competing supermarkets, which all have the same constant marginal cost.   Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus.      pic 2 : Now suppose that the independent supermarkets combine into one chain.   Use the black point (plus symbol) to show the profit-maximizing monopoly outcome. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Finally, use the black area (plus symbol) to shade the area representing deadweight loss.     Which of the following statements is true about the changes that occur after the supermarkets merge?…

Question 24 Which of the following is a difference between perfect competition and monopolistic competition?     No barriers to entry     Zero profit condition     Excess capacity     No fixed cost in the long run

Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. PRICE (Dollars per gyro) 5.0 PRICE (Dollars per gyro) 4.5 4.0 3.5 1.0 0.5 5.0 4.5 4.0 0.5 0 0 10 20 0 10 30 Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obtain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this change does not affect demand and…

Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Competitive Market 4.0 S-MC 35 30 X 2.0 1.5 1.0 + 20 30 PRICE (Dollars per gyra) 5.0 0.5 RICE (Dollars per gyro) 0 5.0 4.5 4.0 3.5 3.0 2.5 Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obtain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this…

The diagram below depicts the market for smart mobile phones for selected brands. Price Apple Iphone Nokia Lumia Samsung Galaxy Benefit Value Map of selected brands of Smartphone i. Refer to the value map. Which firm is in the superior competitive position?

encient? Suppose that a company operates in the monopolistically competitive market for electric razors. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. 3; 100 50 90 80 88 + 70 70 60 550 40 PRICE (Dollars per razor) 30 30 10 MC 20 20 0 10 10 ATC +. ? Mon Comp Outcome MR Demand 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of razors) Min Unit Cost

You decide to create a burger restaurant named BurgerDeals to help pay for college fees. The table below contains total pricing information for your single product, large extra-cheese burger. Your town's burger market is fiercely competitive, with big extra-cheese burger selling for $7 on average. Fill in the blanks in the table and answer the following question. What is BurgerDeals TFC?

Subject:Business economics Q.1): A publisher faces the following demand schedule for the next novel from one its popular authors: Price                   Quantity demand $100                         0 novels 90                             100,000 80                              200,000 70                              300,000 60                               400,000 50                               500,000 40                               600,000 30                               700,000 20                                800,000 10                                900,000 0                                1,000,000 the author is paid $2 million to write the book & the marginal cost of publishing the book is a constant $10 per book e) if the author were paid $3million instead of $2million to write the book how would this affect the publisher decision regardig what price to charge? explain

3. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. PRICE (Dollars per scooter) 500 450 400 350 300 250 200 150 100 50 0 MC 0 50 100 ATC Demand 150 200 250 300 350 400 450 500 QUANTITY (Scooters) MR Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, Citrus Scooters is earning Profit or Loss sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to…

In economics we categorize markets by number of firms, barriers to entry/exit, product differentiation, etc.  According to the Five Forces Analysis for the Pharmaceutical Industry, which of the following is NOT TRUE regarding factors affecting New Entrants?   A. Regulation and legal frameworks are significant.   B. There is significant IP involved.   C. There is significant up-front investment to develop an entirely new biotech drug.   D. Patent protection can be a major barrier to entry.   E. Manufacturers expend substantial costs on marketing.   F. All of the above are true.

Short Answer 1 Fill in the table below. Number of firms Type of product Influence over price Barriers to entry into markets Perfect competition Market structure Monopolistic competition Oligopoly Monopoly Short Answer 2 In the long run, do perfectly competitive markets satisify technical efficiency, allocative efficiency, and economic efficiency? Explan your reasoning for each.

Fill in the blank Columns:_Four Market Models. Monopolistic Competition Characteristics Pure Competition Pure Monopoly Oligopoly Number of firms Type of product Control over price Conditions of entry Non price Competition Give Examples

Please answer only # 5 & 6.  Rebecca owns Louisiana Sugar Company, a manufacturer of sugar. Since there are  lots of domestic manufacturers and importers  of sugar and it is difficult to practice brand differentiation, the sugar industry is highly competitive. Suppose the demand for sugar increases. (1)  What will be the effect on the market price and quantity of sugar in the short run and in the long run?  Explain why. (2)  What will happen to the economic profits of Louisiana Sugar Company in the short run and in the long run?  Explain why. Now suppose that the demand for sugar increases again,  In order to protect the US sugar industry, the US government forbids the import of sugar into the United States (3) What will be the effect on the market price and quantity of sugar in the short run and in the long run?  Explain why (4) What will happen to the economic profits of Louisiana Sugar Company in the short run and in the long run?  Explain why. (5) Are the economic profits of…