Could you explain to me how a decrease in cost would change the
profit maximizing behavior...
Could you explain to me how a decrease in cost would change the
profit maximizing behavior of firms in monopolistic competition
without being worried about the change in number of firms in the
industry?
Solutions
Expert Solution
The explanation of the above question mentioned in below
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Could you explain to me how to solve for the appropriate values
in the cost reconciliation table (as seen in number 4)?
I followed the problem in all the other sections, but not for
this one:
http://www.chegg.com/homework-help/scribners-corporation-produces-fine-papers-three-production-chapter-4-problem-10e-solution-9780077386214-exc
The first half of the table, labeled "costs to be accounted for"
was confusing.
Describe the Behavior of the Profit-Maximizing Firm. How does
the firm account for costs? Define and explain the two types of
costs associated with production? How do decisions change from the
short-run to the long-run?
3) Price Discrimination
Graphically show and explain, given a constant marginal cost,
how the profit maximizing price and quantity are determined by
a
a) Single priced monopolist
b) Perfect (first degree) price discriminating monopolist
c) (Third degree) price monopolist who can separate the buyers
into two groups and charge them each a single but different
price.
Compare or rank (from highest to lowest) the resulting price and
quantity and producer surplus in each of these three monopolistic
situations, explaining why...
1. Explain whether each of the following actions would affect
the firm’s profit-maximizing decision. (Hint: how would each affect
MR and MC?)
i.An increase in the per unit cost of a variable input such as
labor
ii.A decline in the output price for a price-taking firm
iii.Institution of a small fixed fee to be paid to the
government for the right of doing business
iv.Institution of a 50 percent tax on the firm’s economic
profits
v.Institution of a per-unit tax...
Show how the profit-maximizing
graph would differ for a firm if the city does away with the
medallion system and allows new firms to enter the taxi business at
will which leads to a large number of new entrants.
How would the use of an economic pricing strategy
(profit-maximizing rule or price discrimination) improve the
operational profitability of most organizations in the current
economic environment? How would the practice benefit the business
or organization for which you are working? Explain.
no less than 250 words in length, make at least one reference to
your text or other course materials and provide in-text citations.
As you reference information from a source, be sure to provide APA
citations in text and...
How do you find the profit maximizing PRICE (not level of
output) on a graph for a monopoly with demand, marginal revenue,
marginal cost, and average total cost curves.
Find the point where MR = MC and go straight over to the price
axis.
Find the point where demand hits marginal cost and go straight
over to the price axis.
Find the point where MR = MC, go straight up until you hit the
demand curve, and then go straight...