Question: Please answer in 15 minutes Question 1 (12 marks) Consider two firms (A and B) which are about the same size, but firm A is

Please answer in 15 minutes

Question 1 (12 marks) Consider two firms (A and B) which are about the same size, but firm A is in a perfectly competitive industry and firm B is in monopolistically competitive industry. In your own words (using complete sentences), and without using diagrams, answer the following questions. a) What is the main difference between the two firms that causes them to be classified as operating in different industries? b) Contrast how the two firms set their selling price. c) Suppose both firms are in a long run equilibrium. Which firm would you expect to be more profitable? Why? d) Suppose both firms are in a long run equilibrium. Which firm would you expect to be more productively efficient? Why

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Consider two firms, A and B, where firm A is a potential entrant and firm B is the incumbent in the industry. They play the following sequential game: First firm A decides whether to enter (E) or to...

aI need this answer as soon as possible please! Thank you so much. Question 1 (Essay Worth 10 points) (03.01-03.07 HC) Product A is sold in a perfectly competitive, constant-cost industry. a. Draw a...

Question 4 (20 minutes) The province wishes to improve our environment and accordingly will subsidise your municipality $ 2 for every $1 you spend on sewage facilities up to a maximum of $ 1920. Your...

Could you please help me answer the question8? Thank you. The University of Melbourne Department of Accounting & Business Information Systems ACCT30004 Auditing and Assurance Services Semester 2,...

SECTiON A [100 MARKS] Answer ALL the questions in this section. Choose the most appropriate answer. Write down the letter that represents the correct answer next to each number in your answer...

1 For each example below, identify which statement is not characteristic of a perfectly competitive industry. O A. One firm produces a large portion of the industry's total output. O B. There are...

QUESTION 1 (10 MARKS) Consider the following independent situations: a) Keira Knight, sole proprietor of an audit firm, plans to establish a separate business that will provide management consulting...

please read briefly and answer the question urgently needed. please i will give good rating 1. (10 marks) Consider the three articles provided after this page, read them and write a shon literature...

Discuss these findings and comment on the implications of free cash flows from an agency theory perspective. Also discuss the relevance of these findings in the current business environment."...

Write down the economic thoughts of Mahatma Phule.

Say that the bundle of goods purchased by a typical consumer in the base year consisted of 20 gallons of milk at a price of $1 per gallon and 15 loaves of bread at a price of $2 per loaf. What would...

Accrued salaries payable of $ 1 1 8 , 0 0 0 were NOT recorded at December 3 1 , 2 0 2 3 . Office supplies on hand of $ 6 6 , 0 0 0 at December 3 1 , 2 0 2 4 were erroneously treated as expense...

Staff authority gives managers the right to issue orders to other managers or employees. True False

How clear are you about your research questions and the implications of them for choosing appropriate quantitative data analysis tests?

What are the strengths and limitations of the data you have collected? What are the implications of the sample size and response rate for your analysis? What seem to be the main features of the data...

Factor analysis can be used to: a. Assess whether some variables can be grouped or clustered together to form a coherent composite variable. b. Work out the extent to which two variables are...