Question

In: Economics

Products are homogenous when: a)they are identical in the eyes of the purchasers b)some purchasers view...

Products are homogenous when:

a)they are identical in the eyes of the purchasers

b)some purchasers view the products as different

c)suppliers can charge different prices for the same good

d)they meet basic safety standards.

Solutions

Expert Solution

Answer;

Option A is the correct answer.

Products re homogeneous when they are identical in the eyes of the purchasers. A homogeneous product is basically the same in all ways and each can serve as the perfect substitutes.

Some purchasers view the products as different results from product differentiation.

Suppliers can charge different prices for the same good is known as price discrimination.

Basic safety standards are necessary for every good but its not an explanation for homogeneous products.

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Two companies (A and B) are duopolists that produce identical products. Demand for the products is...
Two companies (A and B) are duopolists that produce identical products. Demand for the products is given by the following demand function: P = 1,000 - QA - QB where QA and QB are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are: TCA = 50,000 + 200QA + .5QA2 TCB = 20,000 + 400QB + QB2 Assume that the firms form a cartel to maximize total industry...
Two companies (A and B) are duopolists that produce identical products. Demand for the products is...
Two companies (A and B) are duopolists that produce identical products. Demand for the products is given by the following demand function:           P = 10,000 - QA - QB where QA and QB are the quantities sold by the respective firms and P is the selling price. Total cost functions for the two companies are:           TCA = 500,000 + 200QA + .5QA2          TCB = 200,000 + 400QB + QB2 a) Assume that the two firms act independently...
In humans, the allele for brown eyes (B) is dominant. The allele for blue eyes (b)...
In humans, the allele for brown eyes (B) is dominant. The allele for blue eyes (b) is recessive. If a woman with genotype Bb and a man with genotype Bb have a child, what will be the likelihood of the child having blue eyes? a 0% b 75% c 50% d 25% e 100% ------------------------------ What would be the result of a cell that underwent mitosis but not cytokinesis? a Two daughter cells with no nucleus b One daughter cell...
Suppose we have two identical firms A and B, selling identical products. They are the only...
Suppose we have two identical firms A and B, selling identical products. They are the only firms in the market and compete by choosing quantities at the same time. The Market demand curve is given by P=200-Q. The only cost is a constant marginal cost of $17. Suppose Firm A produces a quantity of 50 and Firm B produces a quantity of 50. If Firm A decides to increase its quantity by 1 unit while Firm B continues to produce...
Problem 4 Consider a market for a homogenous product with n identical firms that compete by...
Problem 4 Consider a market for a homogenous product with n identical firms that compete by setting quantities. The cost function of each firm is 8 per unit. The inverse demand function for the product is P = S/Q, where Q is the aggregate quantity and S is a positive parameter. (a) Compute the symmetric Nash equilibrium in the market and the equilibrium profit of each firm. (b) Suppose that one firm can break itself into two independent divisions that...
There are two companies, X and Y, that produce two identical products, A and B. If...
There are two companies, X and Y, that produce two identical products, A and B. If their labor productivity of the respective products is as follows, determine the following advantages: Product A Product B Company X 100 units per labor hour 30 units per labor hour Company Y 40 units per labor hour 60 units per labor hour Who has the absolute advantage in producing A: ______; Who has the absolute advantage in producing B: ______; Who has the comparative...
Suppose there are two firms, Firm A and Firm B that produce identical products in a...
Suppose there are two firms, Firm A and Firm B that produce identical products in a duopoly. Firm A has a constant marginal cost of production, MCA = 10 and Firm B has a constant marginal cost, MCB = 14. The market demand curve for the the product is given by P = 42 − 0.004Q where Q = (QA + QB). (a) Suppose that Firm A has a first-mover advantage. That is, Firm A is able to choose output...
There are two main company(A, B) in a market. Their products are identical. The marginal cost...
There are two main company(A, B) in a market. Their products are identical. The marginal cost for producing is $3/1 product. Qd = -2000P + 15000 (Demand curve) What is a payoff matrix by finding two company’s profit if two company make a cartel and split the market equally? What is a payoff matrix by finding two company’s profit if company A makes 1000 more product while company B keeps the previous agreement? What is the Nash equilibrium in the...
1: The parasympathetic nervous system will cause a) your eyes to be dry b) your eyes...
1: The parasympathetic nervous system will cause a) your eyes to be dry b) your eyes to water 2: The sympathetic nervous system will have ______________ preganglionic neurons. a) long b) either short or long c) short 3: What type of receptor is on the effector in the sympathetic nervous system? a) muscarinic receptors b) alpha/beta receptors c) nicotinic receptors 4: What type of receptor is on the effector in the sympathetic nervous system? a) muscarinic receptors b) alpha/beta receptors...
There are two main company(A, B) in a market. Their products are identical. MC = $1/1...
There are two main company(A, B) in a market. Their products are identical. MC = $1/1 product. Qd = -1000P + 15000 (Demand curve) What is a payoff matrix by finding two company’s profit if two company make a cartel and split the market equally? What is a payoff matrix by finding two company’s profit if company A makes 1000 more product while company B keeps the previous agreement? What is the Nash equilibrium in the two situation? The cartel...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT