What are the characteristics of perfect competition

Assignment Help Business Economics
Reference no: EM13741226

What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition?

Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe how your firm would maximize its short-run profits.

Why might firms in perfect competition choose to be open on Monday, typically the slowest day of the week, when their revenues do not seem to be sufficient to warrant doing so?

What are the long-run benefits of running a firm in perfect competition?

Under what conditions would your value-menu fast-food restaurant decide to be open on Mondays, and when would it decide not to be open on Mondays? When is losing money on Mondays still a good business decision?

Explain how your experience as a manager would change if the value-menu fast-food restaurant you were in charge of operated under a different market structure monopolistic competition, oligopoly, and monopoly. For example, in each case, how would you decide what price to charge? What would your profits look like? Would consumers be better off in terms of welfare, when you compare a firm in monopolistic competition, oligopoly, and monopoly to one in perfect competition?

Two sources in addition to your textbook are required for this paper.

Reference no: EM13741226

Questions Cloud

Discuss the process of adjustment to the new equilibrium : Use a money supply and demand diagram to answer the following problem: Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium.
Production of three different quantities of ditches : Suppose that for a firm that digs ditches for laying cable or pipeline, backhoes and backhoe operators are pure complements in production, being used on a one-for-one basis. Draw the isoquants (on a graph with backhoe, “K”, and backhoe operators, “E”..
Discuss the motivational methods : Write a 1,050- to 1,400-word paper in which you discuss the motivational methods you would use when introducing such a significant change to your organization. Address the following:
Under a situation of majority voting : How can a small special-interest group win, since the benefits flow only to a small group, under a situation of majority voting?
What are the characteristics of perfect competition : What are the characteristics of perfect competition? Why does this type of fast-food restaurant tend to display characteristics of perfect competition? Imagine you are running a firm with the characteristics of a perfectly competitive firm. Describe ..
Management information system-automating inventory : Write a 3 page paper that addresses how a management information system for automating inventory management, invoice generation, receiving processes, requiring customer order fulfillment, and having Web-based self-services would help her business ..
Payable in six equal end-of-year payments : An engineer borrowed $3000 from the bank, payable in six equal end-of-year payments at 8%. The bank agreed to reduce the interest on the loan if interest rates declined in the United States before the loan was fully repaid. At the end of three years,..
Real interest rate with his notation : In macroeconomics from williamson (4th edition) in chapter 11, it says that demand for credit is R=q (totally elastic), but in williamsons notation, R is in nominal terms and q in real terms. Isnt that mistaken? shouldnt it be r=q? (r=real interest r..
Percentage change in total revenue after tariff increases : The price elasticity of demand for imported mineral water is estimated to be ?0.20 over a wide interval of prices. The federal government decides to raise the import tariff on foreign mineral water, causing its price to rise by 20 percent.

Reviews

Write a Review

 

Business Economics Questions & Answers

  Explain what you think of an alternative way to restructure

Explain what you think of an alternative way to restructure the compensation of EFT's sales force that could potentially enhance profits.

  Rate of return would the firm earn in its asset base

Illustrate what output would be produced, Illustrate what would total profits be also Illustrate what rate of return would the firm earn in its asset base.

  Explain why dose the profits of firms that buy their inputs

Explain why dose the profits of firms that buy their inputs in perfectly competitive market and sell their output in imperfectly competitive markets tends to increase when there is excess supply

  Who were the stakeholders primary also secondary most

Who were the stakeholders primary also secondary most affected by Google's original decision to self-censor in China.

  Simple model of multiple deposit creation

Using the simple model of multiple deposit creation, state the ultimate impact on M1 from the Fed's sale.

  Evalute your answer with calculations

After 1, 2, and 3 years, it will pay a dividend of $5.You expect to sell the stock after 3 years for $120. Is XYZ a good investment. Support your answer with Calculations.

  What do economists call the percentage change in real gdp

Illustrate what do economists call the percentage change in real GDP from year to the next. Under a business agreement 70/30 why should the 70% shareholder decision carry all day.

  Overall speedup by using the floating-point processor

You have a system that contains a special processor for doing floating- point operations. You have determined that 60% of your computations can use the floating-point processor. When a program uses the floating-point processor, the speedup of the flo..

  Elucidate the opportunity costs for the manager

Elucidate the opportunity costs for the manager of being in this business relative to returning to his old job. what is the economic profit of the business.

  Car industry sales of big ticket items in particular the

car industry sales of big ticket items in particular the autos declined strongly during the current recession and the

  Steak knives be a normal good

Suppose that Lorena consumes only three different goods: steak knives, butter knives, and butcher knives. If, according to Lorena’s preferences, butter and butcher knives are inferior god, must steak knives be a normal good?

  Qassume that each criminal i has the following utility

q.assume that each criminal i has the following utility function uibo-fo2 where onumber of crimes committed bper unit

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