Explain why same profit-maximizing behavior for firm leads

Assignment Help Microeconomics
Reference no: EM131919274

Problem

Compare the efficiency of perfectly competitive markets, monopoly markets, and oligopoly markets. Explain why the same profit-maximizing behavior for the individual firm leads to different levels of efficiency in these three types of markets.

Reference no: EM131919274

Questions Cloud

Why cost of advertising be relevant to a consumer decision : Why might the cost of advertising be relevant to a consumer's decision about which brand of a product to purchase?
Draw a diagram that illustrates the textbook supply chain : Draw a diagram that illustrates the textbook supply chain from the publisher's point of view. Who are the various customers for textbooks?
How much will be in your account when you retire : If you retire in 40 years and can earn an interest rate of 9 percent, how much will be in your account when you retire?
What has been enlightening about logic of backward design : What has been exciting for you to learn and/or what has been enlightening about the "logic of backward design"?
Explain why same profit-maximizing behavior for firm leads : Explain why the same profit-maximizing behavior for the individual firm leads to different levels of efficiency in these three types of markets.
Donate to the college to accomplish goal : Assuming an interest rate of 7 percent, how much would you need to donate to the college to accomplish this goal?
What is the present value of the cash flow stream : If the appropriate interest rate is 7 percent, what is the present value of the cash flow stream that the company is offering you
What will be the inventory turnover rate : How many cases of cereal should Foods Galore order each time it places an order? What will be the average inventory? What will be the inventory turnover rate?
Why does a firm selling goods in setting need to advertise : Imagine that you have a program on your cell phone that allows you to walk up. Why does a firm selling goods in this setting need to advertise? Why or why not?

Reviews

Write a Review

Microeconomics Questions & Answers

  Illustrate how work incentives are reduced

Consider a welfare program (such as food stamps) with benefits that decrease as an individual's income increases. Draw the individual's budget constraint.

  Determining the price of carpet in the long run

We mentioned that carpet manufacturing looks like a decreasing cost industry. In American homes, carpets are much less popular than they were in the 1960s.

  What is the sacrifice ratio

How much cyclical unemployment does the economy have to experience to have inflation rate of 2% and What is the sacrifice ratio?

  Determine the firms cost function and its marginal cost

Suppose a firms production function is: q = L 0.5+K0.5. Assume that the price of labor is w = 1 and the price of capital is r = 1. Determine the firms cost function and its marginal cost.

  Why wages and prices cause high unemployment

In 1980, the inflation rate in the US was 12.5%. At that time, the consensus outlook claimed inflation could not decline by more than 1% per year.

  What are the expected mean and standard deviation

What are the expected mean and standard deviation for your sample, assuming the distributor's claim is true? (Show your work)

  Explain the two main causes of banking crises

Suppose the economy is significantly weakened, real GDP is far below potential GDP, and the unemployment rate is high. The Federal Reserve is concerned.

  Find the general structure of html file and how is this

what is the general structure of an html file and how is this structure related to the display of the web page? what is

  The solution to a recessionary gap

According to the Keynesian Model, the solution to a recessionary gap or an inflationary gap is the same. Change the level of aggregate demand.  True or False. Explain Why?

  Consider the market for minivans for each of the events

consider the market for minivans. for each of the events listed here identify which of the determinants of demand or

  Which argument for trade reactions is often advanced

The nation of Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing rice, exporting steel, and neither importing nor exporting TVs. We can conclude..

  Concept of the law of diminishing returns

Describe the concept of the law of "diminishing returns" and why does it take place only in short run? Differentiate between "the long run return to scale" and "economies of scale."

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