Determine the best number of firms to sell the secret to

Assignment Help Microeconomics
Reference no: EM13187725

A firm in a perfectly competitive market invents a method of production that lowers marginal costs. What happens to output? What happens to the price it charges?

A. The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to bribe this employee not to do this? Explain why or why not.

B. Why should the employee choose to tell only some of the other firms rather than all of them?

C. What factors will determine the best number of firms to sell the secret to?

Reference no: EM13187725

Questions Cloud

Use of the one factor between-subject analysis of variance : Which of the following is not a necessary assumption underlying the use of the one factor between-subject Analysis of Variance technique?
Death and dying in the classroom : Articles from journals, literature, no books Topic how to teach elementary students about death and dying in the classroom especially fourth graders APA form bibliography title, who wrote the article date and pulisher.
State what is the theoretical yield of agcl : What is the theoretical yield of AgCl if 30.2 mL of 0.1000 M AgNO3 reacts with an excess of 0.1000 M HCl
Which scale will allow her to make the tallest model : A building is 479 feet tall. For a class project, Kari is to make a scale model of the building to place in the front hall display case. The display case is 21 inches tall. Which scale will allow her to make the tallest model that will fit in the ..
Determine the best number of firms to sell the secret to : A firm in a perfectly competitive market invents a method of production that lowers marginal costs. What happens to output What happens to the price it charges A. The firm has an employee who threatens to tell all other firms in the industry about..
State the equilibrium constant will yet another reaction : The equilibrium constant willYet another reaction has an equilibrium constant at 25 . It is an exothermic reaction, giving off quite a bit of heat while the reaction proceeds. If the temperature is raised to 200 , what will happen to the equilibri..
Role do ability-willingness-insight and commitment play : What role do ability, willingness, insight, and commitment play in the decision making process? can you relate an experience from your work.
Find the point of equilibrium for a system that has a demand : Find the point of equilibrium for a system that has a demand equation p = 45 - 0.0003x and a supply equation p = 29 + 0.00002x
Board of governors from political pressure : Do you think that the fourteen-year nonrenewable terms for governors effectively insulate the Board of Governors from political pressure?

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculating equilibrium price and quantity

Assume a company has the following demand equation, Q = 1,000 - 3,000P + 10A, where Q = quantity demanded, P = product value, and A = advertising expenditures

  Compute preferred stock required rate of return

EMC has preferred stock outstanding which pays a dividend of $5.00 at the end of each year. This stock was issued in perpetuity and has no maturity date.

  Regression modeling

Developing a regression model with Sample Regression Model

  Give two reasons that oil might be produced from high cost

Show that if oil is produced from two reservoirs, one with high marginal cost and one with low marginal cost, it is not possible for the Hotelling rule to be satisfied for each reservoir simultaneously. Give two reasons that oil might be produced ..

  How much rice do domestic farmers produce in japan

What is the free trade level of rice consumption in Japan, how much rice do domestic farmers produce in Japan

  What is the short-run equilibrium price

Suppose there are two technologies for producing steel. Under technology A, a firm's short-run total cost function is STCa(q)=1/2q^2+100q+10 with SMCa(q)=q+100, and using technology B it is STCb(q)=2q^2+6 with SMCb(q)= 4..

  Explain direct impact to the economy

Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month.

  How much does best buy have to charge in order to break even

When you buy a set of speakers, Best Buy asks if you would like to purchase insurance for your speakers. Assume that paying for new speakers for customers who listen to music at a reasonable level (thus minimizing damage) costs, on average, $150, ..

  Calculate the profit that the manager

The manager of EverClean finds two output levels that appear to be optimal. Show what these levels of output are, and explain which one is actually optimal.

  Determine the average nominal income

If the CPI equaled 1.30 in 1990, 1.69 in 2000, and the nominal income of agricultural workers was $35,000 in 2000, what was the average nominal income of agricultural workers in 1990?

  Discuss the implications of your analysis

The particular index that you will compare to the Thumbtack measure is Forbes-overall . You are to include your index along with the five X variables suggested by the authors of the report of the Thumbtack survey.

  Monopoly behavior and government intervention

Discuss are a good thing since they transfer resources from lower rated to higher rated activities thereby helping to maximize society's happiness?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd