Does omega operate in perfectly competitive market

Assignment Help Business Economics

Reference no: EM131378535

Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic profits because numerous competitors have entered the market over the last few years. Based on this information, does Omega operate in a perfectly competitive market? Why or why not?

Reference no: EM131378535

Questions Cloud

What problem is the economy facing : Assume that an economy is in the long-run equilibrium with the GDP deflator of 150 and potential output of $40 billion. The economy is experiencing a shock – a sharp drop of stock prices. What problem is the economy facing? The government decides to ..

Anticompetitive division of federal trade commission : Litigation is more likely to be effective than regulation at deterring a company's harmful (negligent) behavior if: The anticompetitive division of the Federal Trade Commission examines mergers to ensure that they do not create situations in which ab..

Suppliers produce more goods-services when price increases : Phillip’s Curve: For each of the following draw an AD/AS diagram and a corresponding Phillip’s curve assuming the following: suppliers produce more goods and services when price increases; Again assume actual GDP is at 9,200, in both diagrams show th..

State revenue and increase employment in the state : If the cross elasticity of demand between Coke and Pepsi is? 2.02, then Coke and Pepsi are. Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the? state's revenue and incr..

Does omega operate in perfectly competitive market : Omega Travel competes in the highly competitive market for travel. Consumers know that Omega has the best agents in the industry and offers superior service. Nonetheless, Omega earns zero economic profits because numerous competitors have entered the..

Production relationship in total product and units of labor : Consider the production relationship between total product (Q) and units of labor (L) employed that is presented in the table below. What is the average and marginal product of the 6th worker? Find the marginal product of capital at K=5 when you use ..

Cross-price elasticity of demand conditions facing firm : Discuss both the price elasticity of demand and the cross-price elasticity of demand conditions facing a firm in a monopolistically competitive industry. Include the role of advertising and the creation of brand loyalty.

Competitive markets is the cost to society of variety : Economists say that excess capacity in monopolistically competitive markets is "the cost to society of variety." What is the cost that economists are talking about, and why is this cost the result of having a variety of goods and services?

What is elasticity of supply at the solution point : Find Q*, P*, consumer surplus, producer surplus, and total variable costs. Make a graph and label it. What is the elasticity of supply at the solution point? What is the elasticity of demand?

User Account

All Pages