Question
In: Economics
a)A firm operating under perfect completion is earning an economic profit of K20m, in a long...
a)A firm operating under perfect completion is earning
an economic profit of K20m, in a long run, is this a feasible
outcome and why?
b) what are the implications of a having a kinked demand curve
under oligopoly markets
c) what is the key different between perfect competition and
monopolistic competition?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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.
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.
1. Does earning a normal profit or when economic profit = 0 mean a firm is...
1. Does earning a normal profit or when economic profit = 0 mean
a firm is not earning a profit? Explain.
2. Why can there be excess profits in the short run but not in
the long run?
Thank you!
(b) Draw a diagram that shows a firm under perfect competition making a profit in the...
(b) Draw a diagram that shows a firm under perfect competition
making a profit in the short run. How is price determined in this
case?
(c) Draw a diagram to illustrate the case of perfect competition
where there is a negative production externality. Show how, if the
production externality is ignored, output will differ compared to
the alternative where society’s needs are taken into account.
Explain briefly how a tax could be relevant in achieving the social
optimum
(a) Sketch...
Key objective: discovering zero economic profit in a small-business operating in the perfect competition of market...
Key objective: discovering zero economic profit
in a small-business operating in the perfect competition of market
structure.
Setting: As a manager and an entrepreneur, you
will face a new challenge – business venture structured on the
theory of the firm. You are opening a restaurant in your selected
town in the State of NY (please name it up front in your
assignment). As to simplify the scope of your consideration, we
narrow down the problem with several assumptions. You will...
Q. Why a firm remains in business even by earning zero economic profit? Elaborate the answer.
Q. Why a firm remains in business even by earning zero
economic profit? Elaborate the answer.
6. What does it mean to say that: “A firm operating under perfect competition conditions is...
6. What does it mean to say that: “A firm operating under
perfect competition conditions is a price taker"?
Why Can't this firm set any price it chooses? What if it
operates in a monopolistically competitive market, would it be able
to set the price? Why? Give some real life examples to support your
answe
How can a firm stay in business if it makes no economic profit in the long...
How can a firm stay in business if it makes no economic profit
in the long run? Explain.
When is it optimal for a firm to shut down? Explain the
circumstances and time horizon relating to this decision.
Can you please answer them one by one and write legibly and go
step by step please and thank you
How does the long run economic profit converges to zero in perfect competition?Explain the process starting...
How does the long run economic profit converges to zero in
perfect competition?Explain the process starting from short-term
profit or loss.
4. How does the long run economic profit converges to zero in perfect competition? Explain the process...
4. How does the long
run economic profit converges to zero in perfect competition?
Explain the process starting from short-term profit or loss.
both perfect competitors and monopolistic competitors? 1. earn zero economic profit in the long run? 2....
both perfect competitors and monopolistic competitors?
1. earn zero economic profit in the long run?
2. use marginal cost pricing?
3. experience product differentiation?
4.find prices pushed to the min of long-run ATC by entry
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