Finally, if long run average cost is constantly falling the least cost way to provide a good or service is through a single firm. Capital requirements: Production processes that require large investments of capital, or large research and development costs or substantial sunk costs limit the number...
The monopoly might make an economic profit, even in the long run, because the barriers to entry protect the firm from market entry by competitor firms. A Single-Price Monopoly’s Output and Price Decision Figure 12.4 illustrates the profit-maximizing choices of a single-price monopoly. In part...
In the long run, a firm in monopolistic competition maximizes its profit by producing the quantity at which its marginal revenue equals its marginal cost, MR = MC. Price and Output in Monopolistic Competition As firms enter the industry, each existing firm loses some of its market share. The...
You can rip up the money! The truth is we don't know how long your game will last, so if you play for so long that you run out of money, just rip your bills in half! Then your M500 bill will become two M500 bills! Just keep one half and stick the other half in the Bank. ...
Pure CompetitionPure Competition: Long-Run EquilibriumPure MonopolyPure Monopoly: Demand, Revenue and Costs, Price Determination, Profit Maximization and Loss MinimizationPrice DiscriminationPure Monopoly: Economic EffectsMonopoly RegulationMonopolistic CompetitionMonopolistic Competition: Short-Run Profits and Losses...
MonopolyProfits Thisdiagramshowsthatmonopolyprofitsdependontherelationshipbetweenthedemandandaveragecostcurves.Profitispositiveifmarketpriceexceedsaveragetotalcosts,butifpriceislowerthanaveragecosts,thenamonopolistcanoperateonlyatalongtermloss.ResourceAllocationandWelfare Aperfectlycompetitiveindustrywillstrivetoallocatetheir...
Why is it that firms can earn profits in the long run in monopoly and oligopoly, but not in monopolistic competition and perfect competition? Is the product being a commodity a characteristic of perfect competition, monopolistic competition, oligopoly, or monopoly? Explain...
Why can a monopolist continue to make positive profits even in the long-run while a perfectly competitive firm can make only zero economic profits in the long-run? A.Because a monopoly only has one firm while perfect competition has many. B.Because mo...
Here is the solution brief between Juniper and Wandl. Wandl is a planning tools who can simulate traffic across the network. With this tools, now planning can be enhance to simulation of new services, rerouted traffic and calculation.
Why might a monopoly earn an economic profit in the long-run? How does it differ from the situation faced by a perfectly competitive firm? Explain. In pure monopoly, what is the relation between the price and the marginal revenue?