Explain why perfect competition is a natural n-opoly

Assignment Help Business Economics
Reference no: EM13874433

1. For the case considered in the text where the cost function of a firm is C(q) = cq2 + f, find the level of industry output for which the industry is a natural triopoly.

2. Provide a diagram and explain why perfect competition is a natural n-opoly, where n is very large.

3. Assume that the costs of production are C(q) = cq + f and that the demand curve is P = A - Q.

(a) Show that the market is a normative natural monopoly.

(b) Show that whether it is a positive natural monopoly depends on the nature of competition postentry. For what values of f and A is the equilibrium market structure (assuming Cournot competition and free entry) a monopoly, duopoly, and triopoly?

Reference no: EM13874433

Questions Cloud

What range of output is the technology a natural monopoly : For what range of output is this technology a natural monopoly? What are the second-best-where P = AC and the market clears-price and output?
Actually go sleep in the same way mammal do : Fish have____ eyelids. They are___ able to shut their eyes, and although they rest, they do____  actually go sleep in the same way mammal do.
Common shares outstanding for the entire year : Show how Mangold Corporation would report its earnings per share for the current year.
Describing the importance of competition in markets : How does a lack of competition affect prices and output?
Explain why perfect competition is a natural n-opoly : Provide a diagram and explain why perfect competition is a natural n-opoly, where n is very large. Assume that the costs of production are C(q) = cq + f and that the demand curve is P = A - Q.
What are the benefits of earning a quality award : Research the criteria for the Malcolm Baldrige National Quality Award or a similar quality award provided by another organization. Investigate a company that has received this award. What steps did the company take to earn it? What are the benefit..
How tp build automation and control system : How tp Build Automation and Control System (BACS) is the brain of the building ? and What is the Conceptual Model of Smart Grid Framework by IEC ?
Statement of retained earnings for the current year : Last year, Owens, Inc., reported bad debt expense of $150,000.
What features belong to the god-idea : If we work our chain of logic to a First Cause, then how do we explain how this First Cause "got there"? Do you think it is "evident by the natural light [of reason]" that there must be a beginning to everything? What's your reasoning for this?

Reviews

Write a Review

 

Business Economics Questions & Answers

  What is the firms profit-maximizing output

A perfectly competitive firm has the cost curves drawn in the following diagram. If the firm's output sells for $16 per unit, what is the firm's profit-maximizing output? Why?

  Assume the demand for plastic surgery is price inelastic

Assume the demand for plastic surgery is price inelastic. Are the following statements true of false? Explain. When the price of plastic surgery increases, the number of operations decreases.The percentage change in the price of plastic surgery is le..

  Q1 beer n pizza is complements because they are often

q1. beer n pizza is complements because they are often enjoyed together. when the price of beer rises what happens to

  Important factor leading to rising health care costs

The dominant factor affecting medical care delivery and finance in the 1990s was. What is the most important factor leading to rising health care costs in the United States since 1980? Pharmaceutical companies receive patents as an exclusive right to..

  What happened to the equilibrium price level in japan

Research deflation in Japan and explain what happened to the equilibrium price level in Japan during the early 2000s. How did Japan's equilibrium price level adjust between the middle of 2008 and early 2010?

  Right-wrong direction among its present strategies.

By what reasons financial crisis as well as either United States is going in right-wrong direction among its present strategies.

  Analyze a two-period model for the market of computers

Analyze a two-period model for the market of computers in which two firms operate. Firm 1 only produces in period 1 and is endowed with an old technology providing a quality level vO to consumers. Firm 2 is a potential entrant in period 2 and it is a..

  Supply and demand for loan able funds model

Consider a closed economy. Use the supply and demand for loan able funds model to predict the effects of the following events on interest rates and investment.

  Discuss an increase in the personal income tax will slow

Discuss an increase in the personal income tax will slow the growth rate of the economy.

  The quantity theory of money states

According to the principle of monetary neutrality: If the Fed increased the supply of money, and velocity remains unchanged, according to the quantity equation: The quantity theory of money states that: Suppose the value of goods and services produce..

  What is the deadweight loss arising from mandated benefits

How do mandated benefits affect labor market outcomes? Why do these outcomes differ from those resulting from a payroll tax? What is the deadweight loss arising from mandated benefits?

  Government moves to reduce budget deficit

Suppose a government moves to reduce a budget deficit. Using the model developed in class: a) Graphically illustrate the impact of reducing the government’s budget deficit by increasing (lumpsum) taxes on household income. Be sure to label:

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