Identify an industry that enjoys perfect competition
Problem
Identify an industry that enjoys perfect (or nearly perfect) competition. How do the competitors interact with each other and suppliers and customers?
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I'MaGadget Co. produces and sells widgets. Last year, it produced 9,000 widgets. What was I'MaGadgetCo's fixed cost? What was their average fixed cost?
Assume you are operating as a pure monopolist. What price should you charge and how many cookies will you sell? What are your total profits?
If the price increases to P1,100 the units for distribution increase to 13,000 pieces. Calculate the price elasticity of supply given the increase.
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What made the difference between the two analytical perspectives: societal vs. third-party payer?
Your analysis considered a price ceiling at a price lower than the final market equilibrium price (P2) determined. What does inelastic demand formally mean?
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