If unlike a perfectly competitive market, a monopsonist has to
pay a higher wage to attract...
If unlike a perfectly competitive market, a monopsonist has to
pay a higher wage to attract more workers, why, other things being
equal, will a monopsonist pay a lower
Consider the perfectly competitive market for tertiary
education. Research has found that countries with higher level of
tertiary educated population have lower levels of crime.
Draw the market demand and supply for tertiary education,
labeling both the market outcome and the socially optimal outcome.
Explain your graph.
Is the market outcome and the socially optimal outcome the same?
Explain your answer.
If your answer in part (b) is no, explain two possible solutions
for achieving the socially efficient outcome. However,...
Use the perfectly competitive model of wage determination
(with a single labor market) to predict the e ects of repealing
immigration laws (i.e., opening the borders to all immigrants) on
the level of employment and the equilibrium wage in the United
States. What is the e ect on unemployment once the labor market
reaches the new equilbrium?
Suppose that a monopsonist is able to perfectly discriminate
among workers and pay each her reservation wage. Graphically
illustrate equilibrium employment and wages for a
perfectly-discriminating monopsonist. How do they compare to a firm
which hires labor in a perfectly competitive market? Assume the
firm has no monopoly power and sells output in a competitive
market. (You will need to draw the diagram, photograph your
diagram, email it to yourself, and copy-and-paste it into the space
below. Please type the...
Perfect CompetitionWork Sheet #96. If a market is perfectly competitive, then: a. the market demand curve for the
product is horizontal. b. the demand curve facing each
individual seller is downward sloping. c. the demand curve facing
sellers as a group and each individual seller is horizontal. d. the demand curve facing an
individual seller is horizontal.7. Which of the following is characteristic of a purely
competitive seller's (price taker's) demandcurve? a. It is the same as the market demand...
In a perfectly competitive market,
each of the 10 consumers in in the market
has demand characterized by P(q)=MWTP(q)=100 -
5.7*q. If 100 units are transacted, what is the market
price?
Consider the monopolistically competitive market structure,
which has some features of a perfectly competitive market and some
features of a monopoly. Complete the following table by indicating
whether each attribute characterizes a perfectly competitive
market, a monopolistically competitive market, both, or neither.
Check all that apply. Attributes Perfectly Competitive Market
Monopolistically Competitive Market Many sellers Easy entry Few
sellers Price equals average total cost in the long run
In a perfectly competitive market structure, a competitive firm
has the given price as a price taker and, therefore, its price is
equal to its MR shown on the same demand curve as the perfectly
elastic demand curve. On the other hand, a monopoly firm has a
downward sloping demand curve and its equilibrium price is always
larger than MR (P>MR). Briefly explain why? Use both equation
and diagram.
Suppose there is a perfectly competitive market for curry puffs.
The perfectly competitive equilibrium price in this market is RM5
per puff. The perfectly competitive equilibrium quantity is 5,000
curry puffs. (a) Using a diagram, illustrate the perfectly
competitive equilibrium in the market for curry puffs. Clearly
label the areas of consumer surplus, producer surplus, and social
surplus at this equilibrium. [3 marks]
(b) Suppose that the government introduces a price floor for
curry puffs at RM7 each.
Note: Use...
Describe the characteristics of a perfectly competitive
market and a monopolistically competitive market? How are they
similar? How are they different?
1. The market for
ice cream is a perfectly competitive market and has the following
inverse demand curve and inverse supply curve, where p is $ per
gallon and Q is billions of gallons of ice cream per year: Demand:
p = 16 – 5Q; Supply: p = 4 + 2.5Q
a. Provide a graph
of the market for ice cream. Calculate and show the equilibrium
price and quantity (in billions of gallons) in the market.
b. Calculate the
consumer...