Competition in quality and in service may be just as effect

Assignment Help Microeconomics
Reference no: EM131031341

1. "Competition in quality and in service may be just as effective as price competition in giving buyers more for their money." Do you agree?  Why?

2.Explain why monopolistically competitive firms frequently prefer nonprice to price competition.

3.What purpose does product differentiation serve from a firm's perspective? 

4.What purpose does product differentiation serve from society's perspective? 

Two point questions:

5. a) Explain how the entry of firms into its industry affects the demand curve facing a monopolistic competitor, and

            b) how that, in turn, affects its economic profit.

6.Suppose that a monopolistically competitive restaurant is currently serving 300 meals per day (the output where MR = MC). At that output level, ATC per meal is $13, AVC is $10, and consumers are willing to pay $12 per meal. What is the size of this firm's profit or loss? Will there be entry or exit? Will this restaurant's demand curve shift left or right as a result of the entry or exit?

Reference no: EM131031341

Questions Cloud

Determining the rule of probability : What percent of those who took the test in 2009-2010 majored in either engineering or science? Which rule of probability did you use to find the answer?
Student live on campus or off campus : (i) Does the student live on campus or off campus? (ii) What is the student's age in years? (iii) Ask how much money in coins (not bills) the student is carrying. (iv) Record the student's letter grade at the end of the course.
What is the equilibrium price of the good before trade : What is the equilibrium price of the good before trade? After trade, how many units of the good will be imported? How much did the consumer surplus grow with trade? How much did the total surplus grow with trade?
Remains inconsistent across the nations hospitals : In 1999, the Institute of Medicine report, To Err is Human, generated a brief flurry of concerns about avoidable hospital deaths. While progress has been made in addressing system errors and deficiencies, it remains inconsistent across the nation’s h..
Competition in quality and in service may be just as effect : 1. "Competition in quality and in service may be just as effective as price competition in giving buyers more for their money." Do you agree?  Why? 2.Explain why monopolistically competitive firms frequently prefer nonprice to price competition.
Determine the mass of the refrigerant in the tank : Determine (a) the mass of the refrigerant in the tank and (b) the amount of heat transferred. Also, show the process on a P-v diagram with respect to saturation lines.
Determining the proportion of heads : Set the probability of heads in the Probability applet to 0.5 and the number of tosses to 20. Click "Toss" to simulate 20 tosses of a balanced coin. What was the proportion of heads?
Based on this information, tangshan''s book value per share : At year end, Tangshan China Company balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 shares of common stock outstanding. Based on this information, Tangshan's book value per..
Question regarding the random mechanism : Problem: Random digits. The table of random digits (Table B) was produced by a random mechanism that gives each digit probability 0.1 of being a 0.

Reviews

Write a Review

Microeconomics Questions & Answers

  Interpreted the regression after running the regression

You have been assigned the task of creating a multiple regression equation of at least three variables that explains Microsoft's annual sales. Consider using a time series of data of at least 10 years.

  Calculate arc elasticity at the interval

Calculate arc elasticity at the interval between P = 5 and P = 6.

  Analyze the situation using economic reasoning

Let us connect economic theory to actual events. 1.  Find an article in a recent newspaper or magazine illustrating a change that will affect national output. 2.  Analyze the situation using economic reasoning.

  Question about keynesian economics

Identify a person in an organization, or event(s) that should be given credit for the relatively low, stable rate of inflation we've had in the United States since the late 1980s?

  Special-purpose machine is to depreciated as linear function

A special-purpose machine is to be depreciated as a linear function of uses (units-of-production method). It costs $35,000 and is expected to produce 150,000 units and then be sold for $5,000. Up to the end of the third year, it had produced 60,000 u..

  The british phonographic recordingindustry is comprised of

the british phonographic recordingindustry is comprised of record labels that produce promote and distribute recorded

  Would this be convincing evidence

A certain large shipment comes with a guarantee that it contains no more than 15% defective items. If the proportion of defective items in the shipment is greater than 15%, the shipment may be returned. You draw a random sample of 10 items. Let X ..

  How can economics and comparative advantage explain

The United States has been the largest exporter of corn for over 40 years. How can Economics and comparative advantage explain this? Other countries have no use for corn since they produce other foods.

  Difference between adverse selection and moral hazards

Difference between adverse selection and moral hazards? Use detailed examples to explain what the two concepts imply. In the context of your examples, discuss how the problems associated with moral hazards and adverse selection can be resolved.

  Why would labor be treated as a variable cost

What qualities would ideally suit a monopolistic firm with regard to barriers to entry - Why would labor be treated as a variable cost?

  What will happen to capital productivity in omega

Suppose 20 foreign workers with exactly the same skills and same education level asdomestic workers immigrate to country Omega and try to find a job. Holding everything else constant, what will happen to capital productivity in Omega

  On the topic of ticket pricing

On the topic of ticket pricing

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