What happens to the market price

Assignment Help Macroeconomics

Reference no: EM132123816

Question: According to the definition, a perfectly competitive firm cannot affect the market price by any changing only its own output. Producer No. 27 in problem 2 decides to experiment by producing only 8 units.

a. What happens to the market price?

b. Calculate the elasticity of demand facing Producer No. 27 for its own output.

c. What happens to Producer No. 27's revenue as a result of cutting output?

d. Experiment to find the approximate number of firms that must agree to cut their output by 2 units apiece before it becomes profitable for them to do so as a group. Might the reduction in output fail to raise profits even if all firms in the market agree to make such a cut? Explain.

Reference no: EM132123816

Questions Cloud

Calculate difference between price and marginal cost : If the perfectly competitive firm produces the output at which its marginal cost equals market price, it receives no profit (or a very tiny one).

Calculate the transmission efficiency of protocol : Calculate the transmission efficiency of this protocol. Determine the effective data rate of sending these characters over the circuit using the above-defined

Why competitive firm generally does not maximize profit : Explain why a perfectly competitive firm generally does not maximize its profit by producing the output at which average cost is minimized.

Analyze media coverage of a news items : Reflect upon and analyze media coverage of a news items related to the course material - show that reflecting upon our learning is a valuable way

What happens to the market price : According to the definition, a perfectly competitive firm cannot affect the market price by any changing only its own output. Producer No. 27 in problem.

Multiple longest words print the first one : How to design a Java program that reads a sentence, say s, consisting of lower-case words with .nextLine() method, identifies the words

Why university should have spent some time training : Why the university should have spent some time training their employees how to use the new system if they were going to use the plunge approach?

Draw the demand and supply curves : Draw the demand and supply curves and find the equilibrium price, quantity, and profit per producer. What is the elasticity of market demand at the equilibrium.

Java program that reads two diagonal points : How do you make a Java program that reads two diagonal points, say p1 and p2, of an up-right rectangle and finds both the smallest

User Account

All Pages