11b b. List and explain the conditions under which the Oligopolistic firm achieves profit maximization and...

11b b. List and explain the conditions under which the Oligopolistic firm achieves profit maximization and loss minimization using the MR-MC approach. Be thorough.
i. Using the MR MC approach, discuss how to determine when the oligopolistic firm maximizes profit or minimizes loss in the kinked demand curve model.

Expert Solution

Rahul Sunny answered 2 years ago

1. 1. Discuss the conditions for profit maximization for the perfectly competitive firm in the short...

1. 1. Discuss the conditions for profit maximization for the perfectly competitive firm in the short run. In addition to the basic criteria, describe the cost and revenue situations on either side and why, in terms of cost and revenue, the firm will move toward that optimal point. Consider an avocado farmer operating as such a firm. He owns four acres of land on which to plant a single crop. To plant one acre of avocados, he must pay $30...

Explain each of the best conditions in the issue of corporate profit maximization and cost minimization....

Explain each of the best conditions in the issue of corporate profit maximization and cost minimization. Compare and explain the balance conditions of the fully competitive market and the balance of the Cournot and Bertrand in the oligopoly model.

Profit maximization does not adequately describe the goal of the firm because I. profit maximization does...

Profit maximization does not adequately describe the goal of the firm because I. profit maximization does not require the consideration of risk II. profit maximization considers the timing of a project's return III. maximization of dividend payout ratio is a better description of the goal of a firm IV. both I and II V. None of the above Which of the following goals of the firm are synonymous (equivalent) to the maximization of shareholder wealth? I. profit maximization II....

compare the profit maximizing conditions of a firm operating under perfect competition versus a firm operating under monopoly. explain and justify the similaries and differences.

Q3) Explain, with the aid of graph(s), why profit maximization for a firm is a perfectly...

Q3) Explain, with the aid of graph(s), why profit maximization for a firm is a perfectly competitive market implies that the short-run shutdown point is at the quantity where p=AVC(q).

Explain business's role beyond profit maximization.

c. Compare the profit-maximizing conditions under monopoly to those under oligopoly. d. Compare the profit-maximizing conditions...

c. Compare the profit-maximizing conditions under monopoly to those under oligopoly. d. Compare the profit-maximizing conditions under monopolistic competition to those under perfect competition both in the long-run.

Imagine a profit-maximizing monopoly operating under the following conditions. The price which maximizes profit is $12....

Imagine a profit-maximizing monopoly operating under the following conditions. The price which maximizes profit is $12. The marginal revenue (MR) curve and marginal cost (MC) curve intersect where the quantity of output is 10 units and marginal cost is $6. The socially efficient quantity of production is 14 units. The demand curve and MC curves are linear. What is the size of the deadweight loss created by this monopolist? $4 $6 $12 $16

briefly discuss two limitations of "profit maximization" as a goal for the firm.

2) Show that second-order conditions for cost minimization are weaker than second-order conditions for profit maximization.

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