Compare the industry output and price in a Cournot versus a competitive equilibrium. Do firms earn economic
Question:
Compare the industry output and price in a Cournot versus a competitive equilibrium. Do firms earn economic profits in the Cournot model? Does economic theory predict that firms always earn economic profits in oligopolistic industries? Explain. What does the empirical evidence indicate?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
Output is lower and price is higher in the Cournot equilibrium Firms earn economic profits ...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Managerial Economics and Organizational Architecture
ISBN: 978-0073375823
5th edition
Authors: James Brickley, Jerold Zimmerman, Clifford W. Smith Jr
Question Posted:
Students also viewed these Business questions
-
Characterize these different market structures in which a firm may operate: perfect competition, monopoly, oligopoly, and imperfect competition. Compare the industry output and price in a perfectly...
-
Assume you are the manager of Abba Cable Company, which provides commercial communication services to the town of Canyon Lake, Texas. Because of licensing restrictions in the market, only your...
-
In exercise 25.1, we checked how the Bertrand conclusions (that flow from viewing price as the strategic variable) hold up when we change some of our assumptions about fixed and marginal costs. We...
-
As our energy structure transitions toward renewable fuels, forest-based biomass fuels benefit from this transition. What are the likely effects of this transition on consumers, producers, and the...
-
Odintz traded machinery for machinery. Odintz originally purchased its machine for $150,000 and the adjusted basis was $90,000 at the time of the exchange. The machinery received was purchased for...
-
If Congress levies a new $1,000 per car tax on car manufacturers to pay for expanded Social Security benefits, how do you think this will impact unexpected inflation?
-
Suppose that the probabilities are, respectively, 0.40,0.40, and 0.20 that in city driving a certain kind of imported car will average less than 22 miles per gallon, anywhere from 22 to 25 miles per...
-
Jose Pena and Joseph Antenucci were medical doctors who were partners in a medical practice. Both doctors treated Elaine Zuckerman during her pregnancy. Her son, Daniel Zuckerman, was born with...
-
Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $685 were declared at the end of the year, and 500 additional shares of common...
-
Cascade of Poses (COP) is a business that specialises in the delivery of arrangements of roses. Cascade of Poses uses six main suppliers of roses, and has worked hard over the past two years to...
-
In 1981, the United States negotiated an agreement with the Japanese. The agreement called for Japanese auto firms to limit exports to the United States. The Japanese government was charged with...
-
Candak Corporation produces professional quality digital cameras. The market for professional digital cameras is monopolistically competitive. Assume that the inverse demand curve faced by Candak...
-
Match each of the key terms above with the definition that best fits it. PERT (Program Evaluation Review Technique) ____ A systems analyst with a diverse set of skills management, leadership,...
-
Scenario 17:Accountant 17 is the former manager of the audit dept. She says: when covid hit I decidedto retire. I was a cpa for 30 years but im no longer practicing, can I still call myself a cpa? Do...
-
The following information is presented for the year-end reporting for Alcoy, LLC: Sales Price per Unit $24, Total Fixed Costs 150,000, Variable Cost per Unit 8, Total Units Sold 14,000. How much is...
-
Phelps competed at the Olympics. He won several gold medals and cash prizes, all worth $300,000. In addition, in the year that Phelps competed in the Olympics, he received several commercial...
-
Laverne owns 100% stock of the Pizza Bowl, Inc. (PB), which operates a classy combination bowling alley/pizza parlor. Her basis in the stock is $24,000. In its first year of existence, PB earned...
-
Float is defined as the difference between the balance shown on the books and the balance in the bank account. A lag often occurs between the time receipts and disbursements are recorded on the...
-
A bicycle wheel is rotationally accelerated at the constant rate of 1.2 rev/s 2 . a. If it starts from rest, what is its rotational velocity after 4 s? b. Through how many revolutions does it turn in...
-
What is the difference between the straight-line method of depreciation and the written down value method? Which method is more appropriate for reporting earnings?
-
Fill in the blanks in the following table: Units of labor Total product Average product Marginal product 1 40 48 3 138 44 24 6 210 7 29 8 -27 4.
-
Refer to Table 8.3 and explain precisely why using 10 units of labor and 2 units of capital is not economically efficient. (1) (2) Total product (Q) (3) Average product (AP= Q/L) (4) Marginal product...
-
The following table shows the amount of total output produced from various combinations of labor and capital: a. Calculate the marginal product and average product of labor when capital is held...
-
Include your strategies for capitalizing on your strengths and overcoming your weaknesses in order to become successful in your work related goals
-
when Recognizing and Identifying Child Abuse and Neglect, Include some strategies for capitalizing on strengths and overcoming weaknesses in order to become successful in your work-related goals?
-
What can be the most beneficial when learning about Recognizing and Identifying Child Abuse and Neglect? How can Recognizing and Identifying Child Abuse and Neglect will assist you in achieving...
Study smarter with the SolutionInn App