Using the notion of total surplus, explain why perfectly competitive firms are efficient by monopolies are...

Using the notion of total surplus, explain why perfectly competitive firms are efficient by monopolies are not. Be sure to draw graphs to explain your answer.

Expert Solution

Rahul Sunny answered 8 months ago

Explain why monopolistically competitive firms are considered to be less efficient than the perfectly competitive ones...

Explain why monopolistically competitive firms are considered to be less efficient than the perfectly competitive ones in the long run despite the fact that both are operating at the break-even points.

explain why both monopolies and perfectly competitive firms produce the output where MR=MC. since MR=MC for...

explain why both monopolies and perfectly competitive firms produce the output where MR=MC. since MR=MC for both monopolies and perfectly competitive firms, why is the profit-maximizing price based on MR=MC higher than MC for the monopoly but equal to MC for perfect competition?

Explain why a perfectly competitive agricultural firm (a farm) is perfectly efficient in the long run...

Explain why a perfectly competitive agricultural firm (a farm) is perfectly efficient in the long run having achieved allocative efficiency,productive efficiency, and zero economic profit.

Why don't monopolies innovate as much as competitive firms?

Question: Perfectly competitive industries are believed to be more efficient than either Monopolies or Oligopolies yet...

Question: Perfectly competitive industries are believed to be more efficient than either Monopolies or Oligopolies yet there are few such industries operating within the U.S. Draft a memo addressed to your Congressman or Senator outlining the case for promoting more perfectly competitive industries and restricting the number of Monopolies and Oligopolies currently operating in the country.

Using the definition and characteristics of perfectly competitive industries, explain why—in the long run—firms earn zero...

Using the definition and characteristics of perfectly competitive industries, explain why—in the long run—firms earn zero economic profits. Does this mean that competitive firms earn zero accounting profits? Your response should be at least 75–150 words (1–2 paragraphs) in length.

Monopolistic competitive markets are said to be less economically efficient than perfectly competitive markets. Explain why...

Monopolistic competitive markets are said to be less economically efficient than perfectly competitive markets. Explain why this is true. Diagram the equivalent long-run equilibrium points for each to demonstrate your answer.

Explain why the firms in a perfectly competitive industry will earn zero economic profits in the...

Explain why the firms in a perfectly competitive industry will earn zero economic profits in the long run. I need the answer in 1 hour, please?

Compare how perfectly competitive firms choose their profit maximizing quantity with how monopolies choose their profit...

Compare how perfectly competitive firms choose their profit maximizing quantity with how monopolies choose their profit maximizing quantity? Explain why a monopoly can make economic losses. Will the monopoly exit the industry if it is making economic losses?

1) Explain the similarities and differences between monopolistically competitive markets, monopolies, and perfectly competitive markets. 2)...

1) Explain the similarities and differences between monopolistically competitive markets, monopolies, and perfectly competitive markets. 2) Does the presence of asymmetric information in a market justify governmental intervention? Justify your answer using economic principles. 3) Explain bargaining power, the factors that determine it, and its impact in determining the outcome of negotiations.

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