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.
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 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 having achieved allocative
efficiency,productive efficiency, and zero economic profit.
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
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 this is true. Diagram the equivalent long-run equilibrium
points for each to demonstrate your answer.
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) 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.