Marginal cost, Managerial Economics

A firm in a perfectly competitive market invents a new situation of production that lowers its marginal costs.  What happens to its 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 execute this new method. Will it be possible to bribe the employee not to do this? Describe why or why not.

b. Why should this employee probably took to tell only some of the other firms rather than all of them?


Posted Date: 3/25/2013 6:10:10 AM | Location : United States

Related Discussions:- Marginal cost, Assignment Help, Ask Question on Marginal cost, Get Answer, Expert's Help, Marginal cost Discussions

Write discussion on Marginal cost
Your posts are moderated
Related Questions
Q. What do you mean by Kinked Isoquant? This isoquant presumes only limited substitutability of labour andcapital. There are just a few processes for generating any one commodi

diagram of production function with one varaible

Define Managerial economics according to McNair and Meriam McNair and Meriam:  "Managerial economics comprises the use of economic modes of thought to analyse business situatio

(a) Define and explain, using diagrams, consumers' surplus; producers' surplus and total surplus that a society can derive from production and consumption of a good at a particu

Development of Transportation and Marketing Facilitates: The expansion of an industry may expedite the development of transportation and marketing facilities that will decrease th

Discuss and analyze following statement: When Burton Cummings graduated with honors from the Canadian Trucking Academy, his father gave him a $350,000 tractor-trailer rig. Rec

Question 1: Martha National County Club is a golf club in an isolated wealthy community and accepts only females as members. There are 1,000 identical female members of the club an

Cross-elasticity is the measure of responsiveness of demand for a commodity to the changes in price of its substitutes and complementary goods. For example, cross-elasticity of dem

STAGFLATION The term stagflation is a recent arrival in economic literature derived from joining together the stage of stagnation and flections of inflation. The term has been