Question
In: Economics
The market structure of an industry is determined by: a. the ownership structure of firms. b....
The market structure of an industry is determined by:
a. the ownership structure of firms.
b. learning by doing.
c. minimum efficient scale relative to industry demand.
d. differences in the quality of managers across industries.
Solutions
Expert Solution
The answer is (c) minimum efficient scale relative to industry demand
The minimum efficient scale relative to industry demand determines if the industry will be competitive or have monopoly firms or a small number of large firms (oligopoly),
All other options are incorrect as they do determine the market structure of an industry
Rahul Sunny answered 2 years agoRelated Solutions
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of firm B is C(qB)=3qB The cost of firm C is C(qC)=7qC The cost of
firm D is C(qD)=5qD
Firm A will earn?
Firm B will earn?
Firm C will earn?
Firm D will earn?
Assume a perfectly competitive firms cost structure is given by the table above, and that the market price in this industry is $58.
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the table above, and that the market price in this industry is $58.
If the firm is profit maximizing, how much should they produce?
Match the industry structure to the description. - A. B....
Match the industry structure to the description.
- A.
B. C.
D.
Price = Marginal Cost = Marginal Revenue = Average Total Cost,
and Profit = 0
- A.
B. C.
D.
Many, many firms, all of which must charge the given market
price
- A.
B. C.
...
Two firms, A and B, compete as duopolists in an industry. The firms produce a homogeneous...
Two firms, A and B, compete as duopolists in an industry. The
firms produce a homogeneous good. Each firm has a cost function
given by:
C(q) = 30q + 1.5q2
The (inverse) market demand for the product can be written as:
P =300−3Q, where Q = q1 + q2, total output.
(a) If each firm acts to maximize its profits, taking its
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Two firms, A and B, compete as duopolists in an industry. The firms produce a homogeneous...
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firms produce a homogeneous good. Each firm has a cost function
given by: C(q) = 30q + 1.5q2 The (inverse) market demand
for the product can be written as: P = 300 − 3Q , where Q = q1 +
q2, total output.
Question: If each firm acts to maximize its profits, taking its
rival’s output as given (i.e., the firms behave as Cournot
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ALL
2. Perfect competition is a market structure in
which_____________ firms are producing a __________ product and
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3.Monopolistic competition is a market structure in
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______________.
4. Oligopoly is a market structure in which _________ firms are
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5. Monopoly is a market structure in which ________________ firm
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I don't understand why the answer is 0.9 can someone explain to
me.
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Identify one or more firms and how their behavior affects the
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firm and the behavior. Explain in a minimum of 5-8 paragraphs
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