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1both short run and long run average cost curves may be nbspshaped but the explanations for their respective shapes are
1why do marginal cost curves intersect both the average variable cost curve and the average cost curve at their lowest
1why might it make sense for a firm which cannot sell its output at a profit to continue in production for the time
1if the industry under perfect competition faces a downward sloping demand curve why does an individual firm face a
1if supernormal profits are competed away under perfect competition why will firms have an incentive to become more
1is it a valid criticism of perfect competition to argue that it is incompatible with economies of scale
1why is the profit maximising price under monopoly greater than marginal cost in what way can this be seen as
1think of three examples of monopolies local or national and consider how contestable their markets
1in what ways is a monopolistically competitive firm likely to be less efficient than one under perfect
1are there any shops in your area that stay open later than others if so does this affect the prices they charge why do
1give three examples of oligopolistic industries in what ways do the firms in each of these industries compete why do
a the production curve will look like in the upper part of figure s31b the average product of labor is the total
1why under oligopoly might a particular industry be collusive at one time and yet highly price competitive at
1what is meant by the prisoners dilemma game when applied to the behaviour of oligopolists what will determine the
the answer depends of which assumptions we make middot if we assume that the firm always chooses an efficient
1think of two examples of price discrimination in what ways do the consumers gain or lose what information would you
a the marginal rate of technical substitution ismrts deltakdeltalif labor input l is decreased by one unit by how
a we often distinguish between the marginal product of labor and of capital they are defined asmpl deltaqdeltalmpk
a in figure s14 the area under the budget line corresponds to all baskets a consumer can choose given her income and
1would it be possible for firms to calculate their maximum profit output if they did not use marginal cost and marginal
1what is meant by the principal agent problem give two examples of this problem that you havecome across in your own
a we have a consumer who maximizes her utility at a certain point on the budget line in that point the budget line must
1a firm will always prefer to make more profit rather than less do you agree with this statement is it compatible with
1a firm under monopoly or oligopoly that aims to maximize sales revenue will tend to produce more than a firm that aims
a consumer theory is similar to that part of producer theory that deals with long-run productionmiddot