Answer the following Questions:
1. (Demand Under Perfect Competition) What type of demand curve does a perfectly competitive firm face? Why?
2. Explain the different options a firm has to minimize losses in the short run.
3. (The Short-Run Firm Supply Curve) Each of the following situations could exist for a firm in the short run. In each case, indicate whether the firm should produce in the short run or shut down in the short run, or whether additional information is needed to determine what it should do in the short run
a. Total cost exceeds total revenue at all output levels.
b. Total variable cost exceeds total revenue at all output levels.
4. (The Long-Run Industry Supply Curve) A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium. Briefly explain the short-run adjustments for the market and the firm to a decrease in consumer incomes. What happens to output levels, prices, profits, and the number of firms?
5. (Long-Run Industry Supply) Why does the long-run industry supply curve for an increasing-cost industry slope upward? What causes the increasing costs in an increasing-cost industry?
6. The National Council of Economic Education’s EconEdLink has an interesting module on the economics of Internet access at http://www.econedlink.org/teacher-lesson/10 http://www.econedlink.org/teacher-lesson/10 Please review the materials provided. Is provision of Internet access a competitive industry? Briefly discuss.
7. Commodities like gold often trade in markets that are examples of perfect competition. Think a commodity that you believe trades in a perfectly competitive market, and describe why you believe this is so.
8. (The Short-Run Firm Supply Curve) An individual competitive firm’s short-run supply curve is the portion of its marginal cost curve that equals or rises above the average variable cost. Explain why.
9. What are the major characteristics of perfectly competitive market?
10. (Perfect Competition and Efficiency) Define productive efficiency and allocative efficiency. What conditions must be met to achieve them?
11. Monopoly is nearly always seen as something undesirable. Courts have wrestled with monopoly for ages, sometimes defining it as: “the power to control prices and exclude competition”, “restraining trade”, or “unfair and anti-competitive behavior.” Should monopolistic practices be condemned and outlawed? Briefly discuss
Order Management
15%
get 15% discount on your first order
code:first15
Premium Service
- 100% Custom papers
- Any delivery date
- 100% Confidentiality
- 24/7 Customer support
- The finest writers & editors
- No hidden charges
- No resale promise
Format and Features
- Approx. 275 words / page
- All paper formats (APA, MLA, Harvard, Chicago/Turabian)
- Font: 12 point Arial/Times New Roman
- Double and single spacing
- FREE bibliography page
- FREE title page
0% Plagiarism
We take all due measures in order to avoid plagiarisms in papers. We have strict fines policy towards those writers who use plagiarisms and members of QAD make sure that papers are original.