Monopolistic competition and collusion

Assignment Help Microeconomics
Reference no: EM1370656

Even if firms in the monopolistically competitive market collude successfully and fix price, economic profit will still be competed away. Describe (include an explanation of economic profit in your explanation). Will price be higher or lower under such the agreement in long-run equilibrium than would be the case if firms didn't collude? Discuss.

Reference no: EM1370656

Questions Cloud

Question about operating of a business : Assume you decide to open a copy store. You rent store space, and you take out a loan at a local bank and use the money to buy 10 copiers.
Conclude the net charge contained within the cube : A helicopter is ascending perpendicularly with a speed of 5.02 {rm m/s}. At a height of 115 {rm m} above the Earth, a package is dropped from the window.
Find the maximum loan the bank can extend : Assume the Required Reserve Ratio is 10% and the balance sheet of the People's National Bank looks like the accompanying example:
Write application to inputs ten numbers from user : Write the application to inputs ten numbers from user, each number can be between 10 and 100, inclusive. As each number is read in determine if it is number already entered.
Monopolistic competition and collusion : Describe (include an explanation of economic profit in your explanation). Will price be higher or lower under such the agreement in long-run equilibrium than would be the case if firms didn't collude? Discuss.
Compute equivalent annual cost : An engineering student requires to replace the battery in her car so that she can drive home for a vacation after Spring Semester. She has located following possibilities:
Explain we live in a very complex and culturally diverse : Explain We live in a very complex, and culturally diverse society and When we bring individuals together from diverse backgrounds in a work environment conflict can arise
Design stored procedure to accept optional parameters : Design a stored procedure named spBalanceRange that accepts three optional parameters. Procedure returns a result set consisting of VendorName, InvoiceNumber and Balance for each invoice with a balance due
Question about online bill payment : The Wall Street Journal reported that businesses are aggressively pushing customers to pay their bills electronically. Numerous banks dropped their monthly fee for online bill paying,

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Demand function-profit fuction

Determine Acme's total profit function. Assuming that Acme is effectively able to charge different prices in the two markets, what are the profit-maximizing price and output levels for the product in the two markets? What is Acme's total profit und..

  Role of advertising for marketplace

In the early 1980's just as serious health effects were being noted regarding sugar consumption, Kellogg's changed the name of Sugar Pops to Corn Pops (the sugar content didn't change) and the name of Sugar Flakes to Frosted Flakes (still sugar co..

  Total revenue with the price reduction

What is the Exy and what does that number mean and what is the relationship between these two goods - What would happen to total revenue with the price reduction

  Define consumer surplus, and gi en good

Define the term Consumer surplus, Gi en good and Income elasticity of demand using graph and equation.

  Costs and price in perfectly competitive firm

A perfectly competitive firm encounters the following monthly costs and price. What is the fixed cost of this firm? What is the optimal output of this firm?

  Determining sources of economic profit

How do the concepts of accounting profit and economic profit differ? Why is economic profit smaller than accounting profit? What are the three basic sources of the economic profit? Classify each of following according to those sources:

  Break-even quantities and operating leverages

Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.

  Marginal product change for resource

Describe how the marginal product for a resource can change. Conclude with an explanation for what can change the demand for a resource.

  Short-run cost structure

Comment on the statement. Do you agree with the speaker? Explain. Use a graph to illustrate the answer indicating the firm's short-run cost structure

  Determining monopolist demand function

Derive a total revenue function and a marginal revenue function for the firm. Calculate the profit maximizing level of price and output for One and Only Inc.

  Substitution-law of demand

Apply the substitution and income effects to the purchase of meat given the lower price. How is this related to the law of demand? Hint: use chicken as a substitute good in your discussion.

  Alleviate the shortage of math and science

Using the principles of supply and demand, develop a plan to alleviate the shortage of Math and Science teachers within this country. Try to use price and non-price determinants as your tools to reach equilibrium.

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