Using ONLY a single market model, compare and contrast the long run equilibrium outcomes of perfectly...

Using ONLY a single market model, compare and contrast the long run equilibrium outcomes of perfectly competitive markets and monopoly markets. Make sure to clearly identify the deadweight loss that occurs along with labeling the prices and quantities charged by each market structure. (10 pts)

Expert Solution

Rahul Sunny answered 8 months ago

A) Compare and contrast the long run equilibrium point of a monopoly firm with that of...

A) Compare and contrast the long run equilibrium point of a monopoly firm with that of perfectly competitive firm by selecting most appropriate diagrams. B) Should the government break up a monopoly into a great number of perfectly competitive firms? Briefly explain. My work What are some of the implicit costs incurred by an entrepreneur in running his / her business ? How are these implicit costs estimated ? Briefly explain to justify your answer. Does the soft drink industry...

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand falls. By the...

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand falls. By the time all adjustments have been made, price will be __________ its original level if the industry is a(n) __________ costs industry. a. above; decreasing b. at; constant c. at; increasing d. below; increasing e. a and d

Suppose all firms in a perfectly competitive market are in long-run equilibrium. Illustrate what a perfectly...

Suppose all firms in a perfectly competitive market are in long-run equilibrium. Illustrate what a perfectly competitive firm will do if market demand rises.

Draw a graph showing a market and a perfectly competitive firm in long run equilibrium.

Suppose that the restaurant market is a perfectly competitive industry in long run equilibrium. Each of...

Suppose that the restaurant market is a perfectly competitive industry in long run equilibrium. Each of the identical restaurants has the same (long run) cost function: T C = 225 + q 2 , where q is the volume of sales by each establishment. Each of the identical firms therefore have the same marginal cost: MC = 2q. (a) What is the average cost function for the identical restaurants? (b) How much does each individual firm produce in the long...

Suppose the market for toilet paper is perfectly competitive. The long run equilibrium is characterized by...

Suppose the market for toilet paper is perfectly competitive. The long run equilibrium is characterized by the price being $2 per roll with 20 firms making toilet paper, each selling 5 million rolls per week for a total of 100 million rolls being sold each week. A pandemic then breaks out, where people are afraid that the world will run out of toilet paper. a) what happens in the short run to: -1) The price of a roll of toilet...

In general, Compare the social efficiency of oligopolistic market outcomes to perfectly competitive market outcomes and...

In general, Compare the social efficiency of oligopolistic market outcomes to perfectly competitive market outcomes and monopoly outcomes.

2. Assume the market for soybeans is perfectly competitive and in long-run equilibrium, and Norma’s Soybeans...

2. Assume the market for soybeans is perfectly competitive and in long-run equilibrium, and Norma’s Soybeans is a small farm in the market. Draw correctly labeled side-by-side graphs of both the market for soybeans and the firm, labeling the market equilibrium Pm and Qm and Norma’s Soybean equilibrium Pf and qf. Is Norma’s Soybeans earning economic profits, economic losses, or a normal profit? Now assume that in the soybean market there is a huge drought that ruins the soybean harvest...

Suppose that a perfectly competitive market is in long-run equilibrium such that all firms earn zero...

Suppose that a perfectly competitive market is in long-run equilibrium such that all firms earn zero economic profits. Suppose also that each individual firm reports a yearly profit of $100,000 to the government and its shareholders. Is this situation possible or impossible? Explain your answer in your own words. Hint: Consider total opportunity costs (b) Consider a perfectly competitive market. As the level of output increases, is the supply curve in the long run in a perfectly competitive market upward-sloping,...

Assume that a perfectly competitive hand sanitiser market is in long-run equilibrium. The price of hand...

Assume that a perfectly competitive hand sanitiser market is in long-run equilibrium. The price of hand sanitisers is observed to increase during the COVID 19 pandemic, and then it returns back to its normal price after the pandemic.Include in your discussion the profit levels in each case.

Question