Explain where equilibrium price would be

Assignment Help Econometrics

Reference no: EM133428291

Questions:

1. Assuming firms in a market face a linear downward-sloping demand curve and constant marginal and average costs, carefully DRAW AND EXPLAIN where equilibrium price would be if it were a competitive market.

2. Using the same diagram, and supposing a horizontal merger occurs between firms in the industry, DRAW AND EXPLAIN under what circumstances the merger might be allowed by the anti-trust authorities if the industry is pricing competitively prior to the merger, but raises the market price after the merger.

Reference no: EM133428291

Questions Cloud

What factors in indonesia constitute major opportunities for : What factors in Indonesia constitute major opportunities for U.S. investors? Identify at least three opportunities that can be seized upon by a U.S. investor.

What do you infer that saunders is arguing : Identify by name, at least 2 logical fallacies made by characters in Saunder's "Puppy". Include quotes with signal phrases and in-text citations that SHOW

What is the relationship between x and y that would make : What is the relationship between X and Y that would make you indifferent between switching Jim and Sally to the more fuel efficient vehicles described above?

How does the system work or not work to your benefit : Describe "ability grouping" and how it compares or contrasts to "relative age". Describe "accumulative advantage" - How does the system work or not work

Explain where equilibrium price would be : Assuming firms in a market face a linear downward-sloping demand curve and constant marginal and average costs, carefully DRAW AND EXPLAIN where equilibrium

Compare and assess the contributions : Compare and assess the contributions or achievements of two or three notable people working within the same field or occupation. They may be educators

How does the forest gump movie compare to art : What are the Significance of objects in Forest Gump movie and How does the Forest Gump movie Compare to art

When should we use this supply and demand model in deciding : When should we use this Supply and Demand model in deciding the market price, and the change of the market price? Tell us about your daily experience.

How the process of ensuring alignment allows preschool : How the process of ensuring alignment allows preschool teachers to assess the effectiveness of both your daily lessons and Their program's curriculum?

User Account

All Pages