Question 1a in a competitive market place pure competition

Assignment Help Microeconomics
Reference no: EM13346906

Question 1:

A) In a competitive market place (pure competition) is it possible to continually sell your product at a price above the average cost of production?  Why or why not?

B) Why do marginal and average cost curves take a "U" shape?

Question 2:

Define "Monopoly".  Is it true that a monopolist will maximize profit where Marginal Revenue equals the Average Cost of Production?  Why or why not?

Question 3:

Define Elasticity.  If you have a product where elasticity is less than one, what does that mean?  Is it good, bad for the firm?

Question 4:

Why will firms not shut down as soon as the price of their product drops below the Marginal cost?  At what point will most firms go out of business (shut-down) and why?

Reference no: EM13346906

Questions Cloud

Part-11 what is diversity2 explain assimilition and : part-11. what is diversity?2. explain assimilition and pluralism views of diversity.3. race gender and ethnicity are
The general method for constructing the parameters of the : the general method for constructing the parameters of the rsa cryptosystem can be described asnbspfollows select two
Write an essay on the youngest billionairedevelop an : write an essay on the youngest billionaire.develop an appropriate thesis to argue in essay. no formal research is
Part-11 how is job costing in service organizations : part-11. how is job costing in service organizations different from job costing in manufacturing environments?2. if
Question 1a in a competitive market place pure competition : question 1a in a competitive market place pure competition is it possible to continually sell your product at a price
Question 1a in a competitive market place pure competition : question 1a in a competitive market place pure competition is it possible to continually sell your product at a price
1 synchronization within monitors uses condition variables : 1. synchronization within monitors uses condition variables and two special operation wait and signal. a more general
Exercise 1 implementation of classes chart and barchart : exercise 1 implementation of classes chart and barchart. class barchart chould display a simple textual representation
1 calculate the dc voltage applied to the 10 load resistor : 1. calculate the dc voltage applied to the 10 ? load resistor in the circuit shown below assume the diode threshold

Reviews

Write a Review

Microeconomics Questions & Answers

  Questions based on economic theory

Represent this economy using the AD/AS model and explain the model and what problem will occur in the economy if no fiscal policy is pursued? What fiscal policy tools could be used to combat the problem? ECOM4000

  The quantity demanded of corn increase percent

What percentage would the quantity demanded of corn increase?percent.

  Define the rightward shift of the aggregate demand curve

A fall in the value of the dollar against other currencies makesUS final goods and services cheaper to foreigners even though theUS aggregate price level stays the same. As a result,foreigners demand more American output.

  Investment decision based on the macroeconomic data

How will you rank the countries for the investment decision based on the macroeconomic data, Justify. Present the scorecard you used in your analysis.

  Externalities of education

Use technology and information resources to research economic problems and issues and write clearly and concisely about economic problems and issues using proper writing mechanics.

  Culturally appropriate and linguistically sensitive material

Identify the following components for a lesson you might want to teach intended grade level for instruction

  Which explains the source of consumer surplus forgood

a. Good Ais an inferior good and Goods A and B are substitutes. b. Good Ais an inferior good and Goods A and B are complements. c. Good Ais a normal good and Goods A and B are substitutes. d. Good Ais a normal good and Goods A and B are complements. ..

  A cable company is considering a new suburban market

A cable company is considering a new suburban market

  Elasticity of demand for a good

Elasticity of demand for a good with respect to its own price, yet pay careful attention to the algebraic sign of the elasticity of demand for a good with respect to another good's price.

  At what interest rate would you be willing to lend

Suppose two types of firms wish to borrow in the bond market. Firms of type A are in good financial health and are relatively low risk. The appropriate premium over the risk-free rate for lending to these firms is 2%. Firms of type B are in poor f..

  What factors may help determine the value of information

In economics, what factors may help determine the value of information Can you provide factors in the case when information is treated as a consumption good Can you provide factors in the case when information is treated as an input in the decisio..

  How to maximize the profit?

Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

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