Evaluate the perfect competition market structure as a benchmark against which the functioning of all other types of market structures can be compared in terms of allocative efficiency and productive efficiency. Kindly provide a very detailed answer.
Q: Consider the following portfolio choice problem. The investor has initial wealth w and utility u(x)…
A: Note:- since you have posted multiple subparts, as per guidelines we can solve only the first 3…
Q: Please explain briefing how fiscal policy works, what spending multipliers are, when is the spending…
A: Fiscal policy is how government spending and taxation is used to influence the economy. The main…
Q: Question 3 (a) Assume that a government cuts its expenditure and therefore runs a public-sector…
A: Public expenditure refers to that component of aggregate demand which is influenced by the…
Q: Use the table to determine the discounted payback period using 7% per year Period (n) Cash flow…
A: The discounted payback period is the method to find the time it takes for an investment to generate…
Q: a) What is more in your company's interest to compete or cooperate with the rival company? Keep in…
A: Optimal production strategy refers to the level of output that, given a company's costs and the…
Q: From the information in the table, can you determine the short run supply curve? If so, what would…
A: The supply curve shows the quantity of a good or service that producers are willing and able to…
Q: If you invest P500 at an annual interest rate of 10% compounded continuously, calculate the final…
A: Compounding alludes to the method involved with earning interest on the initial investment as well…
Q: Attributing the gender wage gap to ongoing discrimination by employers will likely be incorrect…
A: The analysis of the job market and the way it affects jobs, salaries, and distribution of income is…
Q: Currently, 1600 people ride a certain commuter train each day and pay $16 for a ticket. The number…
A: Price elasticity is measured as the percentage change in quantity divided by the percentage change…
Q: The figure depicts a demand-for-loanable-funds curve and two supply-of-loanable-funds curves. S₂…
A: In the loanable funds market, the businesses will be the demanders while the households will be the…
Q: 53) Refer to Table 12-1. Suppose the fixed cost of production rises by $500 and the price per unit…
A: Total Cost: The term total cost refers to the cost that encompasses two types of cost which are…
Q: per unit, how many units do you have to sell for the vertical integration to yield the same profit…
A: A company develops its operations through vertical integration, a business strategy in which it owns…
Q: You are the manager of a monopoly that sells a product to two groups of consumers in different parts…
A: Optimal markup pricing rule that is consistent with MR = MC P = MCe1+e where e is the elasticity of…
Q: When price for product Y is dropped by 15%, the sales (in units) of that product increased by 10%.…
A: ep is a measure of the responsiveness of Qd of a product or service to a change in its P. It shows a…
Q: Use the graph below and the following information to answer the next question(s). The world price of…
A: Deadweight loss due to tariff is the difference between the amount of economic welfare in the…
Q: Point out the basic characteristics that define monopolistic competition and indicate the…
A: A competitive market is a market structure where there are many buyers and sellers, and no…
Q: Consider the production of handmade rugs and assembly robots in India and Canada. Assume that Canada…
A: Free trade is a strategy that advances international trade with no barriers like tariffs, quotas, or…
Q: A small town has a duopoly in its tattoo market. Two firms, "Thread the Needle" and "Ink about it"…
A: A market structure where there are only two dominant firms or companies that are competing against…
Q: Describe the ppf curve and explain bow it illustrates the principle of opportunity close, what are…
A: The Production Possibility Frontier (PPF) is a graphical representation of the maximum amount of two…
Q: Question 10 Consider the following table which shows a hypothetical case of India and the US. Both…
A: An exchange rate is the value of one country's currency compared to another country's currency. It…
Q: According to economic theory, if trade opens up between a rich country and a poor country, the…
A: Trade alludes to the exchange of goods and services between at least two parties, typically for…
Q: I'm not sure if my numbers are correct the overall profit for the 2nd option is different. I got…
A: Subjective probability refers to the probability of something happening based on an individual's own…
Q: Suppose a banking system has $ 130,000 of checkable deposits and actual reserves of $ 20,000. If the…
A: The reserve ratio is the portion of reservable liabilities that commercial banks must hold onto,…
Q: Determine the optimal consumption and production at Home and Foreign under autarky. Depict this…
A: Without involvement in international trade, autarky is a state in which all products and services…
Q: What are the gains from trade, and explain why countires might still decide to trade even if no…
A: The gains from trade are the gains from trading instead of producing i.e. the advantages that accrue…
Q: Discuss thoroughly 1 macroecomic issue in the Philippines and explain throughly why it is relevant…
A: A macroeconomic issue is a major problem or challenge faced by an economy as a whole, rather than by…
Q: In this unit we have seen that monopolistically competitive firms could increase the amount they…
A: Monopolistic competition is one type of market condition where many sellers face the market demand…
Q: Suppose that the for every 10% increase in the price of gasoline, consumers will decrease the…
A: Price elasticity of demand is the percentage change in quantity demanded divided by the percentage…
Q: Compare the profits of Firm A when both firms respect the collusive agreement to the profits of Firm…
A: When both firms collude, then both will charge high price. If firm A cheats in the collusion, in…
Q: 28 29 # Question with the answer 30 # What is the impact on r and I, if there is a negative shock to…
A: Y=18000 C=300+0.8(Y-T) G=3000 I=3500-400r T=2500
Q: On a diagram, demonstrate the effects of (I) a fall in investment and (II) a fall in the money…
A: The IS-LM framework is a macroeconomic model used to analyze the interaction between the real…
Q: Assume an aggregate production function with a constant marginal product of capital and with capital…
A: The growth rate of output alludes to the rate change in the degree of output over a predetermined…
Q: If a firm's average total costs decrease as it increases its scale of production, the firm is…
A: Economies of scale is when the increasing production decreases the average total cost. Diseconomies…
Q: In a financial market a stock is traded with a current price of 50. Next period the price of the…
A: To find the prices of Arrow-Debreu securities, we first need to calculate the probabilities of the…
Q: draw the demand for capital for the firm in the RBC model
A: RBC model is the new classical macroeconomic model that highlights the fluctuations of growth in the…
Q: Elisabeth’s utility function is min{x, 5y + 2z}. The price of x is £1, the price of y is £5, and the…
A: A utility function is a mathematical equation of an individual's preference or contentment with many…
Q: Can you do a IS and LM both shifting to the left a graph
A: The IS-LM model is a macroeconomic model that shows the relationship between interest rates and…
Q: Refer to Table 11-6. Table 11-6. The table below applies to an economy with only two goods-…
A: CPI: CPI refers to the total expenditure made in a particular year by the consumers of the economy.…
Q: In hypothesis testing if the null hypothesis is reje O the data must have been accumulated…
A: In the regression model, we have two hypotheses. i.e., Null hypothesis and alternative hypothesis.…
Q: The productivity of a country is given by f(x,y) = 100x0.650.35, where x is the amount of labor and…
A: Marginal productivity is defined as the change in the total productivity due to change in the amount…
Q: An economy is described by the following equations: C = 1,800+ 0.6 (Y - T) IP = 900 G = 1,500 NX =…
A: The overall amount of spending that is anticipated in an economy, taking into consideration the…
Q: Determine the FW of the following engineering project when the MARR is 13% per year. Is the project…
A: Future worth FW is the value of the investment at a specified point in the future at a certain rate…
Q: Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the…
A: Expenses =$14500 per year Expenses are made at the end of the year. Inflation rate=3.9% MARR=15%
Q: The demand curve and long-run supply curve for carpet cleaning in the local market are: QD=1000-10P…
A: A competitive business refers to a type of industry in which there are huge number of buyers and…
Q: Illustrate and describe the effects of an expansionary fiscal policy action with a flex ER and NFM…
A: Global trade is critical to a the nation's economic expansion and prosperity. It allows countries…
Q: Select the correct colored supply and demand graph for iPads that represent the impact of an…
A: Demand and supply are two fundamental concepts in economics that describe the behavior of buyers and…
Q: Barnes' Binoculars is considering licensing the technology to manufacture a new bifocal binocular.…
A: Initial Cost of License = 1 million Probability of prototype to be working = 60% Probability of…
Q: Use a graph of your choice to briefly illustrate the overall welfare effects of introducing an…
A: Import tariffs are one type of trade restriction that a govt imposes on its economy. It is usually…
Q: suppose a company has two production facilities with two different TC functions. in facility A total…
A: The tends to distribute the output across the plant in such way that marginal cost becomes equal…
Q: effect of fiscal and montary policy on economic growth in Zimbabwe
A: Macroeconomic policy is described as functions undertaken by governments to accomplish macroeconomic…
Evaluate the
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Productive efficiency is achieved at minimum average cost, while
- Evaluate the perfect competition market structure as a benchmark against which the functioning of all other types of market structures can be compared in terms of allocative efficiency and productive efficiency. Please provide diagrams with this answer.Comparison between Pure competition and the perfect competition in market structure of the economy?Why is the perfect competition often used as a benchmark? Question 3 options: The perfect competition model is more frequently observed in the real world compared to other market models It provides a useful comparison to markets that operate in more complex, real-world conditions. It accounts for a variety of issues like pollution, inventions of new technology, poverty, and government programs that other models do not account for. In the real world, all markets are perfectly competitive, so this model allows us to compare them to one another.
- Q3 : Elaborate the Perfect Competition Model in detail.why do economists and policy makers use perfect competition as a benchmark to analyze market structure and performance?Describe the main differences between each of the four market structures we've studied in class. Be sure to comment on how the characteristics of the market/industry structures affect economic efficiency as well as firms' ability to earn economic profit in the long run.
- How is the PROCESS (steps) of adjustment or transition from short to long term equilibrium in perfect competition? To solve this, you must base yourself on the GRAPHIC model, starting from what happens in the market equilibrium as more companies join, more competition, and like this, it influences the entrepreneur's decisions until reaching the long-term mathematical equilibrium / equality.Which of the following products/markets is most consistent with the perfect competition model? Apple iPhones a bustling farmers' market Kellogg's Frosted Flakes electric utilities automobiles 2 Adam Smith’s “invisible hand” refers to The mechanism that moves market price and quantity to equilibrium The natural tendency of markets to avoid monopolies and ensure competition The market’s incentive to lower price in order to increase quantity sold The lack of government role in the free market due to the market’s ability to self-regulate The tendency of firm’s to seek to merge in order to realize synergies and market dominance 3 A company facing inelastic demand for a product sees an increase in its costs after a worker strike forces a wage increase. What is likely to happen to the price and quantity sold of that product? Price will fall slightly while…Discuss the economic conditions that are necessary to achieve productive and allocative efficiency under pure competition?
- There are various market kinds in the market structure where each type of market has its own characteristics. Explain all types of markets along with their respective characteristics. Support your explanation with the help of suitable examples for each sub division of market accordingly.If all assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development?Describe how firms in Perfect Competition achieve both allocative and productive efficiency and their significance in relation to the other market models. Why is the portion of the marginal cost curve above the minimum average variable cost the short run supply curve in Perfect Competition?