Prices

When prices in monopolistically competitive markets exceed those in a perfectly competitive equilibrium, this difference is the cost of: a. information b. market power c. inefficiency d. product differentiation

costs of regulation- managerial economics

Market demand and marginal revenue relations for Glove-Box units are:P=$500,000-$250Q;MR=$500,000-$500Q;OSHA mandates that GB must install new eqpmt that will increase the $200,000 marginal cost of mfg to $250,000 per unit.The fixed expenses of $50million per yr will be unaffected. a.calculate GB's profit maximizing price/outpu ...continues

Perfectly competitive firms

In the long run, firms will exit a perfectly competitive industry if: a. excess profits exceed zero., b.excess profits are less than zero., c.total profit equals zero., d.excess profits equal zero. Please explain.

Elasticity

Demand for cassettes can be characterized by the following point elasticities:price elasticity =-2,cross price elasticity with aaa batteries is -1.5, and income elasticity =3. please explain the following statement. a. A 3% price reduction in cassette players would be necessary to overcome the effects of a 2% decline in inco ...continues

Elasticity

Demand for cassette players can be characterized by the following:price elasticity=-2, cross-price elasticity with AAA batteries=-1.5, and income elasticity =3. Indicate if True or False and why: a.A price increase for cassette players will decrease both the number of units demanded and the total revenue of sellers. b. The cro ...continues

Competitive Firms

If an imperfectly competitive firm is able to produce at any output level, then the price and quantity which maximize total revenue, given the demand schedule attached are...? (see attached)

Competitive firms

Suppose an imperfect competitor faces the demand schedule attached and its marginal cost is constant at $2. If the firm is able to produce any output level, then it maximizes profits at (see attachment)

Marginal Revenue - Competitive Firms #34

If a firm under imperfect competition could find buyers for 9 units at a price of $5 (no excess quantity demanded), and if the marginal revenue due to the tenth unit were $2, the highest price at which a firm could find buyers for 10 units must be:

Marginal Revenue

Suppose that a firm has the opportunity to employ a new machine that will increase production by five units and will cost $10 to purchase. If each unit of output can be sold for $5, then the: a) marginal revenue product of the machine is less than its cost, and the firm should not take advantage of the opportunity. b) mar ...continues

Market price and Marginal Revenue in Imperfect Competition

In the situation of imperfect competition, the relation between market price P and marginal revenue MR for each supplying firm is that: a) P is less than MR at all or most output levels. B) P is greater than MR at all or most output levels. c) P is the same as MR at all output levels d) P is either less than MR at pa ...continues