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
What tow characteristics does a market structure need to have for firms in that industry to...
What tow characteristics does a market structure need to have
for firms in that industry to engage in technological advance? What
market structure best meets these criteria?
Suppose that firms A,B,C and D are Bertrand duopolists in the salt industry. The market demand...
Suppose that firms A,B,C and D are Bertrand duopolists in the
salt industry. The market demand curve can be specified as
Q=100-3p, Q=qA+qB+qC+qD. The cost of firm A is C(qA)=7qA The cost
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.
QuantityTotal Cost0100110221163154422853506532778681124Use the table above to answer the following question.Assume a perfectly competitive firms cost structure is given by
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
rival’s output as given (i.e., the firms behave as Cournot
oligopolists), what will be the equilibrium quantities selected...
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.
Question: If each firm acts to maximize its profits, taking its
rival’s output as given (i.e., the firms behave as Cournot
oligopolists), what will be...
What is the oligopoly market structure of the music industry?
What is the oligopoly market structure of the music
industry?
Market Structure Exercise ANSWER ALL 2. Perfect competition is a market structure in which_____________ firms are...
Market Structure Exercise ANSWER
ALL
2. Perfect competition is a market structure in
which_____________ firms are producing a __________ product and
entry is _____________.
3.Monopolistic competition is a market structure in
which_________ firms are producing a _________ product and entry is
______________.
4. Oligopoly is a market structure in which _________ firms are
producing a ____________ product and entry is ________________.
5. Monopoly is a market structure in which ________________ firm
supplies a product and entry ________________.
6. Oligopoly is...
Suppose that there are two industries, A and B. There are five firms in industry A...
Suppose that there are two industries, A and B. There are five
firms in industry A with sales at $5 million, $2 million, $1
million, $1 million, and $1 million, respectively. There are four
firms in industry B with equal sales of $2.5 million for each firm.
The four-firm concentration ratio for industry A is:
A. 0.9.
B. 1.0.
C. 0.8.
D. 0.7.
I don't understand why the answer is 0.9 can someone explain to
me.
Identify one or more firms and how their behavior affects the market structure of the market...
Identify one or more firms and how their behavior affects the
market structure of the market they are in. (behavior examples:
limit pricing, non-competitiveness, advertising, etc) OR show how
market structure affects a firm's behavior giving example(s) of a
firm and the behavior. Explain in a minimum of 5-8 paragraphs
(500-900 words).
Any market structure (Monopoly, Monopolistic competition,
perfect competition, oligopoly) would work. The purpose of the
exercise is to demonstrate that firm behavior affects market
structure and market structure...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
- The birthday paradox says that the probability (chance) that two people in a room will have...
- #include <iostream> #include "lib.hpp" using namespace std; int main() { // declare the bool bool...
- Why do we compare means instead of individual scores? for comparing average SAT test scores across...
- NPV Your division is considering two projects with the following cash flows (in millions): 0...
ADVERTISEMENT