Describe why competitive markets usually lead profit

Assignment Help Microeconomics
Reference no: EM13391576

Most commercial fish species in nearly every ocean and sea are being rapidly depleted in what marine biologists and other specialists warn is evolving into one of the worst ecological disasters of modern times. According to the United Nations, the world's 15 million fishermen and 23 million tons of fishing vessels represent twice as much fishing power as major stocks of fish can sustain."

Assume that ocean fishing resembles a competitive market in the following ways...there are no significant barriers to entry and there are enough individual fishermen so that none of them can affect the market price of fish.

a) Explain why competitive markets normally lead profit maximizing firms to make choices about resource use that lead to an "efficient" allocation of resources to the market?

b) If unregulated competitive markets promote "efficient" patterns of resource use, why has unregulated competition led to such serious over allocation of resources to fishing?

Reference no: EM13391576

Questions Cloud

Explain advantages andor disadvantages of distributing : suppose that the governmental authorities wished to decrease use of a pesticide that is leaching into groundwater
In the month of june jose heberts beauty salon gave 4000 : in the month of june jose heberts beauty salon gave 4000 haircuts shampoos and permanents at an average price of 30.
One role of seasoned experienced human resources : one role of seasoned experienced human resources professionals is to mentor junior professionals. you have decided to
Why is the planning stage often referred to as phase 0 zero : a why is the planning phase often referred to as phase 0 zero of the generic product development process?b what is a
Describe why competitive markets usually lead profit : most commercial fish species in nearly every ocean and sea are being rapidly depleted in what marine biologists and
What is the best manner to handle manufacturing overhead : what is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?a. the
Some might argue that the production-line approach might : 1. some may argue that the production-line approach may not treat the process as a service process but as what
Within the proposal you should also discuss ways in which : the company you work for is considering changing its applicant testing process. your supervisor has asked you to
Consolidation work and financial statements subsequent to : consolidation work and financial statements subsequent to acquisition background and information palus corporation

Reviews

Write a Review

Microeconomics Questions & Answers

  What mechanism allows the ecnomy to move toward equilibrium

If the price level is above the equilibrium price level, how does the aggregate quantity of goods and services demanded compare to the aggregate quantity of goods and services supplied at the price level? Is this a condition of equilibrium? If no..

  What is the equation of budget line

What is the equation of his budget line and sketch the budget line and two possible indifference curves that Herbert

  Evaluate the goodness to fit using rmse

Develop a one year monthly or weekly forecast or a two year quarterly forecast (for the hold out period) using the time series decomposition model you evaluated in c) above.

  Evaluate the gdp impact of positive change in government

you are told that 75 cents out of every extra dollar pumped into the economy goes toward consumption as opposed to

  If money is worth 5 percent what is the equivalent present

A $90,000 investment is made. Over a 5 year period, a return of $30,000 occures at the end of the first year. Each successive year yields a return that is 10 percent less than the previous year's return. If money is worth 5 percent, what is the equiv..

  Xyz common currently sells for 3share you believe that

xyz common currently sells for 3share. you believe that one-month hence the stock could be worth 8 or could be

  Determine excess demand

Recent increases in rents have caused the citizens of Elmville to vote for a rent ceiling of $1200. Assuming all rental units in Elmville are identical and the supply and demand for rental units are given by Qs = -1000 + 20P Qd = 50000 - 10P

  Suppose that price of silk ties in perfectly competitive

assume that the price of silk ties in a perfectly competitive market is 19 and that the typical firm confronts the

  Questionnbspdo brief research on asean economic community

questionnbspdo brief research on asean economic community aec and discuss on the following questions how does the aec

  Should effects of policy on real gdp be taken into account

The government is considering a policy to reduce air pollution by restricting the use of "dirty" fuels by factories. In deciding whether to implement the policy, how, if at all, should the likely effects of the policy on real GDP be taken into acc..

  Divide the market equally among the three of them

A, B, and C decide to act illegally as a cartel, to divide the market equally among the three of them, and to set the price and output that will maximize their total profits. What price and output do they set? What is the output level that each..

  How does the charging the monoply a specific tax per unit

how does the charging the monoply a specific tax per unit affect the monopoly optmum and 5the welfare of

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