A monopoly might form if which of the following conditions of perfect competition were violated? Question 24Answer a. Many consumers b. Fully informed consumers c. Free entry and exit d. Firms produce identical products
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Question 24Answer
Many consumers
Fully informed consumers
Free entry and exit
Firms produce identical products
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- Compare and contrast the decision-making processes of a competitive firm versus a monopoly firm. a. The difference between C and M markets in terms of the (homogeneity or uniqueness of product, barriers to enter and number of firms). b. You must point to the difference in the demand curve for a C firm and that for a M firm. c You must refer to the long run profit (or not) of the C as well as M firm. d. You must point to whether C and M firms are efficient or NOT. Graphs are welcome, not manadatory.Give two characteristics of the following:a. a perfectly competitive marketb. a monopolistic marketHere is a graph for monopolistic competition in long run equilibrium. After seeing thisgraph, explain why this is bad news for an individual food truck business.
- Compared to perfect competition there is a social cost under monopoly do you agree? Explain using illustrationsA perfectly competitive firm is considered to be more generous in terms of price and quantity of output in comparison to firm belonged to monopoly and monopolistic markets. a. Demonstrate a simplified graph to show that a perfectly competitive firm incurring loss, but has reached the minimum condition to keep operating in the market. b. Does the firm operate in the short or long run based on your answer to question (a). Why?3.1. Fill out the table below. Unit Marginal Marginal Quantity (Q) Price (P) Total Revenue (TR) Fixed Cost (FC) Variable Cost (VC) Total Cost (TC) Profit Cost Revenue 14 $10 $3 $43 15 $10 $51 16 $10 $60 17 $10 $70 18 $10 $81 3.2. Is the table above pertaining to a perfectly competitive firm or monopoly? How can you tell?
- A perfectly competitive firm is onsidered to be more generous in terms of price and quantity of output in comparison to firm belonged to monopoly and monopolistic markets. C. If firms incurring loss in this market begin to exit the market, what will happen to the market equilibrium? Demonstrate your answer using a simplified graph. d. The firm wishes to supply output more than the quantity determined under the equilibrium condition, is it worth to pursue?Looking at the demand curve below, what market type does its curve suggest? Select the correct answer below. O monopoly perfect competition Price monopolistic competition all markets Quantity 27 FEEDBACK MORE INSTRUCTION SUBMITExercise A.12. Explain the differences between the supply and demand curves of a firm in perfect competition and a monopoly.
- Can you help me with the question below? A firm with “market power” has: A. The ability to raise price above marginal costB. The ability to act without regard for the activities of other firms C. The ability to drive competitors from a defined marketD. The ability to set marginal revenue equal to marginal costE. None of the above.Discuss briefly why competition exists in the industry? Give atleast Five reasons.Please dont copy and paste the answers One of your former peers starts up a firm after graduating NYUAD. However, he didn’t take Markets so is unsure if he is behaving optimally. He’s asked you for help. His firm faces monopolistic competition, has diminishing returns to its inputs and uses a fixed input. He is producing at a quantity such that P=MC, and he makes a positive profit. a. Draw the Demand curve, MR, MC, and ATC reflecting this situation on a graph. Label the quantity, price and profit of the firm under his strategy. b. Is his strategy maximizing his profits? Explain how he would do so if not. Label the quantity, price and profit of the firm under the optimal strategy on your graph in part a. c. He asks you about what you predict might happen to his profits in the future. What do you expect will happen to profits in this industry as we go to long run and why? What is the key assumption of monopolistic competition that gives you your conclusion?