| | | | * Question 5 0 out of 5 points | | | Under asymmetric information,Answer | | | | | Selected Answer: | sellers make profits in excess of competitive returns | Correct Answer: | at best you get what you pay for | | | | | * Question 6 5 out of 5 points | | | In the purely competitive case, marginal revenue (MR) is equal to:Answer | | | | | Selected Answer: | price | Correct Answer: | price | | | | | * Question 7 | | | All
Words: 1480 - Pages: 6
the Northwest in 2007 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competing in a monopolistically competitive market structure. In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium. This paper will cover the benefits of this new monopoly
Words: 752 - Pages: 4
There are three market structures that individually play a role in the economy. The competitive market is a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker. The monopoly is a market structure in which many firms sell products that are similar but not identical. The Oligopoly market is a market structure in which only a few sellers offer similar or identical products. Each of these markets has different characteristics, play different
Words: 1074 - Pages: 5
Business Economics Project Paper 1 January 2011 1) Everyone’s Gasoline Problem Gasoline prices in Chicago have risen from $2.64 to $2.92 between September 2009 and September 2010(2) with a series of price changes in between. Prices change for a number of economic reasons. One such reason is supply and demand. Gas prices rise after 9/11 and after the start of the war with Iraq, it seems to rise when there is any major crises. Supply and demand plays a major part in the fluctuation of gasoline
Words: 1124 - Pages: 5
Market Structures & Amp Maximizing Pro XECO/212 Momoh Dudu 10/12/2011 What is a the number of companies rivaling in a certain market, how they differ and how they are similar, and the task they venture when entering and exiting the market determines that companies market structure. What roles does each market structure play in the economy. Many assumptions are made about the different types of markets, including competitive markets, monopolies, and oligopolies. This paper will break
Words: 769 - Pages: 4
information processing using computational power to help client partner enhance their business due to revolution in global marketplace resulting from integrated digitization of processes and infrastructures. The “Smarter Planet” Business strategy aligns perfectly with IBM’s core value and mission statement. While the core values state that IBM is dedicated to every client’s success and focused on innovation, the mission for IBM is to strive and lead invention and development of industry’s most advanced information
Words: 555 - Pages: 3
ECO/365 WEEK 3 HOMEWORK 1. Sally is considering opening her own beauty salon. She anticipates the following costs/year: Furniture: | $20,000 | Equipment: | $14,000 | Rent: | $12,000 | Coloring products: | $6,000 | Styling products: | $4,000 | Additionally, Sally is withdrawing $34,000 from her savings account that pays 4% interest/year to purchase the furniture and equipment; she will quit her current job that pays $25,000 per year. She expects total revenues from the new
Words: 695 - Pages: 3
Running Head: StubHub Stub Hub was started by Jeff Fluhr and Eric Baker. They found a niche market for their business idea relating to tickets. In early 2004, consumer’s mainstream channel for purchasing tickets was from either a primary ticket seller (venue organizer) or a primary authorized ticket seller like Ticketmaster. If the ticket holder wished to resell their tickets, there was no proper devoted channel to allow this type of transaction in a safe, secure and swift manner. Major ticket
Words: 2080 - Pages: 9
ECON 203 - Case Study case study I. Table of Contents I. Table of Contents ……………………………………………… 1 II. Summary of Article ……………………………………………… 2 III. Concepts from Microeconomics Applied to Article …………. 4 A) Monopolies vs. Perfect Competition…………………… 4 B) Natural Monopolies……………………………………… 4 C) Price Discrimination……………………………………… 5 D) Price Controls for a Natural Monopoly……………… 5 E) Picking an Output Level………………………………. 6 IV. Analysis of Paper
Words: 1717 - Pages: 7
Effects of Market on Pricing THE market conditions facing suppliers of goods and services vary considerably. Customers of gas and water supply companies may feel they are being exploited with high prices and poor service levels provided by companies who know that their customers have little choice of supplier. On the other hand, customers are constantly being wooed by seemingly countless travel and motor insurance companies, all trying to offer deals which buyers will consider to be better than
Words: 2588 - Pages: 11
