Suppose the cost schedule for a perfectly competitive firm producing brooms is:
If the market price is $5, how many brooms would the firm produce? Would the firm be making economic profit? How could you tell if the firm is in long-run equilibrium?
Answer to relevant QuestionsSuppose the firm is a monopoly and its price schedule is: How many brooms would the firm produce? Would the firm be making an economic profit? How does the behavior of an oligopolist differ from the behavior of a monopolist? From a firm in perfect competition? From a firm in monopolistic competition? What are the differences among horizontal, ver tical, and conglomerate mergers? Give examples of each. Suppose you read the 2004 Census of Manu factures in Canada and noted four-firm concen tration ratios and Herfindahl-Hirschman indexes for the following oligopolistic industries: Which one represents the most unbalanced oli ...Why would economists argue in favor of allowing monopolies and oligopolies to set their own prices undisturbed by government? What assumptions do they make concerning economies of scale?
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