Long-run average total cost is the cost of production per unit of output under conditions in which all inputs are variable. The minimum point on the long-run average total cost curve defines theminimum efficient scalefor the firm. 企业的长期平均成本最小时的规模 Specialization efficiencies((劳动...
Why are the monopolist's and the monopolistically competitive firm's demand curves downward sloping while the competitive firm's demand curve is horizontal? Why is the demand curve of the firm under the perfect competition perfectly elastic?
1) Describe/Explain Monopolistic Competition; how do profits get "squeezed" in the short run and what is the most likely outcome in the long run. 2) Calculate profits in a duopoly under cartel pricing Explain why the demand curve ...
1. Why does a perfectly competitive firm face a perfectly elastic demand curve? 2. Why does a monopolist face a downsloping demand curve? 3. Why are long-run profits not unlikely under conditions of p How does monopolistic competition differ ...
Similarly, a producer under monopolistic competition has to study the degree of elasticity of demand in pricing his product. If the demand for his product is more elastic in relation to the other producers, he can attract some additional customers by lowering the price of his product. On the ...
That is, variation in trade costs across import markets provides the price variation necessary to trace out the slope of the demand curve. There are differences across import markets in expenditures (due to size or idiosyncrasies in demand) and price indices (due to the intensity of competition)...
Answer: B Diff: 2 Section: 10.3 6) Under which of the following scenarios is it most likely that monopoly power will be exhibited by firms? A) When there are few firms in the market and the demand curve faced by each firm is relatively inelastic B) When there are many firms in the ...
Aggregate demand is a measure of the desired total quantity of goods and services that is demanded throughout the economy in some period of time. The aggregate demand curve shows how that total demand for goods and services varies with the price level. Total spending and total income are ...
in which the complete knowledge of the demand by the agent can be doomed, as noticed in [2], by “... lagged response of buyers to changing prices, exogenous changes in tastes, techniques, government policies... ”, and the demand curve can change “its slope, being highly elastic for...
(Publisher) f.Wecanalsothinkaboutmarketsintermsofthedifficultyofentrywith i.competitivemarketsbeingeasytoenterand ii.monopolisticmarketsbeingdifficulttoenter. 3.Demand a.TheDemandCurve:TheRelationshipbetweenPriceandQuantity Demanded i.Quantitydemandedistheamountofagoodthatbuyersarewilling Chapter4:TheMarketForcesof...