light on how vital the use of economic tools is in making managerial decisions as reflected in the simulation. Decision making process of management is described in different market structures. Just as it pertains to any for-profit business organization, the goal is to cut and maximize profits in each type of market structure. Based on the information provided in the simulation, Quasar Computers were involved in an extensive research in developing a pioneer product “the Optical Notebook.” In 2003
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|Comments | |Identification of market structure |X |You did a good job explaining that the shampoo market | | |Yes No |is a Monopolistic market. | |Assumptions regarding market structure and elasticity |X |I completely agree with you with Pantene
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all inputs are variable and the scale of production can change. The economy of scale is the reduction of the cost of production as production increase. This low cost helps the firm to be more productivity and give an advantage to company in the market. Figure 1. The long run average cost curve with economies and diseconomies of scale As seen above in the diagram, The LRAC is represented in the form of a U shape. Therefore the Long Run Average Curve is known as the “envelope curve”, because
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Elasticity of Demand and Market Structure Cece’s Famous BBQ Sauce is a homemade traditional sauce carefully made with the freshest ingredients. Southerners take great pride in barbecuing and there is a current debate as to who has the best BBQ sauce. There are a wide variety of BBQ sauces readily available to consumers and you can find them in any grocery store in the U.S. This describes a Perfect Competition structure; no single company can influence market price or market conditions. Although there
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will probably face competition from newly entering firms. | | | d. In the short run, Susan should continue to operate her business, and she is also in long-run equilibrium. | | Question 3 Marks: 1 A firm in a competitive market has the following cost structure. Output | Total Cost | 0 | $5 | 1 | $10 | 2 | $12 | 3 | $15 | 4 | $24 | 5 | $40 | This firm will shut down Choose one answer. | a. if
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This Task centers on the competency of marginal analysis with two structured objectives. First is the requirement to describe the relationship between marginal revenue (MR) and marginal cost (MC) at the point of profit maximization. Second is the requirement to explain the concept of profit maximization. ACTIONS OF APPROACH: 1- Prior to turning in the Task, consider attending a Live Webinar on the Task. Students that attend are much more likely to pass the Task. You can always find an updated schedule
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Introduction The spectrum of market structures varies diversely from highly competitive markets where there are a large number of buyers and sellers, each of whom having little or no power to alter the market price to a situation of pure monopoly where a market or an industry consists of one single supplier who enjoys considerable control over the market price, unless specific restrictions are placed directly by the government. A market structure such as the Chicken Meat Industry can be deemed
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competition are similar in that both market structures include A) price-taking behavior by firms. B) a homogeneous product. C) no barriers to entry. D) very few firms. Answer: C Diff: 1 Topic: Market Structures 2) Perfect competition and monopolistic competition are similar in that firms in both types of market structure will A) act as price takers. B) produce a level of output where price equals marginal cost. C) earn zero profit in the long run. D) act
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Chapter 1: MANAGERS, PROFITS, AND MARKETS Multiple Choice 1-1 Economic theory is a valuable tool for business decision making because it a. identifies for managers the essential information for making a decision. b. assumes away the problem. c. creates a realistic, complex model of the business firm. d. provides an easy solution to complex business problems. 1-2 Economic profit a. is a theoretical measure of a firm’s performance and
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firm's demand curve is perfectly elastic. C. a monopolist can influence market price while a competitive firm cannot. D. a competitive firm has a U-shaped average cost curve while a monopolist does not. 2. If a monopolist increases output from 14 to 15 by lowering its price from $32 to $31, marginal revenue is: A. $ 1. B. $ 17. C. $448. D. $465. [pic] 3. Refer to the graph above. The maximum possible total profit this monopolist who charges only one price can earn is: A. $ 0. B
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