Question
In: Economics
For each of the following, is the industry perfectly competitive? Referring to market share, standardization of...
For each of the following, is the industry perfectly competitive? Referring to market share, standardization of the product, and/or free entry and exit, explain your answers in detail.
1. Aspirin
2. Alicia Keys Concerts
3. SUVs
Solutions
Expert Solution
a) Aspirin
It is a perfectly competitive market. Aspirin is widely used around the world for inflammation and other needs. It is sold by many firms around the world and any new firm can enter and exit the market as per his choice. The product will be the same or be having the same salt composition.
b) Alicia Key concert: Not a perfect market. Alicia key is just one individual singer. IF other tries to imitate her it will be a parody or an imposter. The new copied product will be not even close to the original singer. There is no entry and exit in this market but a monopoly. There can be concerts by other singers but it will not be an Alicia key concert.
c) SUVs: Not a perfectly competitive market. there are many different variants of an SUV and the product is not standardized. THere are several barriers to entry for making the product like the technical know how. For example, a BMW Suv will be a BMW Suv and can't be copied by Audi. If Audi makes one it will be his own version.
Rahul Sunny answered 2 years agoRelated Solutions
For each of the following, is the industry perfectly competitive? Referring to market share, standardization of...
For each of the following, is the industry perfectly
competitive? Referring to market share, standardization of the
product, and/or free entry and exit, explain your answers in
detail.
Aspirin
Lady Gaga Concerts
SUVs
Also, come up with your own example of a competitive market.
What would you expect to happen to profits in this market over time
(short-run versus long-run outcomes in perfect competition) and
why? Use this industry as an example to explain the competitive
process in detail.
For each of the following, is the industry perfectly competitive? Referring to market share, standardization of...
For each of the following, is the industry perfectly
competitive? Referring to market share, standardization of the
product, and/or free entry and exit, explain your answers in
detail.
Aspirin
Alicia Keys Concerts
SUVs
Also, come up with your own example of a competitive market.
What would you expect to happen to profits in this market over time
(short-run versus long-run outcomes in perfect competition)?
Explain the competitive process in detail.
Can You please answer this with good detail
For each of the following, is the industry perfectly competitive? Referring to market share, standardization of...
For each of the following, is the industry perfectly
competitive? Referring to market share, standardization of the
product, and/or free entry and exit, explain your answers in
detail.
Aspirin
Lady Gaga Concerts
SUVs
Also, come up with your own example of a competitive market.
What would you expect to happen to profits in this market over time
(short-run versus long-run outcomes in perfect competition) and
why? Use this industry as an example to explain the competitive
process in detail.
Make a discussion ,for each of the following, is the industry perfectly competitive? Referring to market...
Make a discussion ,for each of the following, is the industry
perfectly competitive? Referring to market share, standardization
of the product, and/or free entry and exit, explain your answers in
detail.
Aspirin
Lady Gaga Concerts
SUVs
Also, come up with your own example of a competitive market.
What would you expect to happen to profits in this market over time
(short-run versus long-run outcomes in perfect competition) and
why? Use this industry as an example to explain the competitive
process...
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...
In a perfectly competitive market, industry demand is: P = 850 – 2Q, and industry supply...
In a perfectly competitive market, industry demand is: P = 850 –
2Q, and industry supply is: P = 250 + 4Q (Supply is the sum of the
marginal cost curves of the firms in the industry).
(a) Determine price and output under perfect competition.
(b) Now suppose that all the firms collude to form a single
monopoly cartel. Given that there is no change in the demand or
cost conditions of the industry, what price and total output would...
Each firm in a perfectly competitive industry A. produces a good that is identical to that...
Each firm in a perfectly competitive industry
A.
produces a good that is identical to that of the other
firms.
B.
has control over at least one unique resource to separate
themselves from their competitors.
C.
attains economies of scale so that its efficient size is large
compared to the market as a whole.
D.
produces a good that is slightly different from that of the
other firms.
E.
has an important influence on the market price of the good...
The widget industry is perfectly competitive, and the current market price of a widget is $60....
The widget industry is perfectly competitive, and the current
market price of a widget is $60. A typical firm in this industry
chooses to produce 200 widgets. The total fixed cost paid by each
firm is $2000.
(a) To produce a quantity of 200 widgets, the firm employs 300
workers, at a wage of $20. What is the firms average variable cost
(AVC) at a quantity of 200 widgets?
(b) Sketch a diagram showing the optimal decision of the firm....
Consider the tourism industry in a large city. The market for tours is perfectly competitive in...
Consider the tourism industry in a large city. The market for
tours is perfectly competitive in the city. Firms have no fixed
costs, and all firms have the same cost structure. The daily cost
of providing tours for any given firm is listed in the table
below.
Cost of providing tours
Total Tours
Cost of Providing Tours
1
$36
2
$68
3
$96
4
$120
5
$140
6
$156
7
$168
8
$184
9
$204
10
$228
11
$256
12...
Which of the following is true in a theoretical perfectly competitive market? market demand is perfectly...
Which of the following is true in a theoretical perfectly
competitive market?
market demand is perfectly inelastic
a firm's marginal revenue curve is equal to the market price
market demand in a perfectly elastic
an individual firm can obtain a higher price by reducing their
level of output.
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