*Draw two models to represent the operating position of:A price - taking firm in a competitive market in long-runequilibrium, Why might thisapply to an Australian fruit grower (e.g., grapes or other fruits as an example of aprimaryfood producery? 1. A firm with a considerable degree of market power. To what extent does this apply toan Australianfood retailer (like Coles or Woolworths)? What is the source of theiarket power enjoyed by Coles and Woolworths?

2. A firm with a considerable degree of market power: In this model, the firm is a large player in…

Answered: *Draw two models to represent the…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 5SQP

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1 Complete the Table Note: TFC = 5. QTC MC ATC 0 1 2 3 4 5 6 29 38 X 2 6 X 5 5 2 Maximize Profit Presume the table on the left is for a price taker firm when the market price is $8. What is the: Profit maximizing quantity: Profit: $ 3 Optimizing When a consumer is optimizing, what is the mathematical expression that will be true for any two goods? Translate that math into English.
How can I describe the equilibrium situation of the firm operating in the perfectly competitive market and the firm operating in the monopoly market by drawing graphics, and at the same time, how can I explain the cost, revenue and demand structures with graphics? b210801021@subu.edu.tr You can send a reply to this address. If it can be in Turkish, I would be happy, but if it is not, it is not a problem.
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $1.71 is only 150,800. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine…
In the world market for copper, there are two types of copper mines: Type 1 (primarily locatedin North America) and Type 2 (primarily located in Asia and South America). Each type of mineincurs five “buckets” of costs: (1) direct materials; (2) energy inputs (such as electricity andnatural gas); (3) shipping; (4) production labor; and (5) production and administrative overhead.Direct materials, energy inputs, and shipping services are purchased in competitive spotmarkets, and the total monthly costs that a firm incurs on these items vary in direct linearproportion to the quantity of copper produced in the mine during that month. If a mineproduces no copper in a particular month, it incurs no direct materials, energy, or shippingcosts.By contrast, the total monthly costs for production labor and overhead are volume- insensitive:the levels of these costs do not vary with the volume of production in the mine. Even if themine temporarily suspended operations for a month (i.e., produced…
Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in thousands) 130 120 110 100 90 80 70 60 40 20 10 15 30 45 75 MC D 60 90 105 201355 $150¹65180195 Quantity per period (in thousands) Tools
Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output TC MC ATC 25,400 $104,000 $0.54 50,400 154,000 1.04 75,400 191,500 2.54 100,400 279,500 3.04 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? Yes c. Suppose that the market price for a bottle of vitamins is $2.54. At that price the total market quantity demanded is 105,560,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.54 is only 75,400. How many firms will be in this industry? firm(s)
Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…
Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…
Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…
The following graph shows the marginal cost curve for Oiram-46, a competitive firm producing magic hats. Suppose that currently, the prevailing market price is $1.50 per magic hat. On the following graph, use the blue points (circle symbol) to plot Oiram-46's price line. Then use the grey points (star symbol) to indicate the profit maximizing quantity of output produced by Oiram-46. TOTAL COST (Dollars) he 12 11 10 a 8 N 3 2 1 0 + Oiram-46 7 0 MC + H 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 QUANTITY (Magic hats per week) Based on the graph, Oiram-46's profit-maximizing quantity is Demand Profit maximizing quantity ? magic hats, average revenue is $ and marginal revenue is
1 Is it possible for a firm to experience both increasing and diminishing returns at the same time? 2 What other firms, in other industries, might be in similar situations to Microsoft, and in what respects? 3 What is the nature of the fixed factor that is causing the law of diminishing returns in Microsoft’s case? 4 Are there any ways in which Microsoft can reduce the undesirable effects of the law of diminishing returns?
Assume that a purely competitive firm has the schedule of costs given in the table below. output TFC TVC TC 0 $500 $0 $500 1 500 150 650 2 500 200 700 3 500 260 760 4 500 340 840 5 500 450 950 6 500 590 1090 7 500 770 1270 8 500 1000 1500 9 500 1290 1790 10 500 1650 2150 Indicate what output the firm would produce and its profits in the following table and transform the information of price and quantity supplied into a supply curve in a diagram. Price Quantity supplied Profit (+) or loss (−) $ 50 150 250 _____ _____

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