Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

A firm in a perfectly competitive market invents a new method of production that lowers its marginal costs. What happens to its output? What happens to the price it charges?

(a). The firm has an employee who threatens to tell all other firms in the industry about how to implement this new technique. Will it be possible to pribe the employees not to do this? describe why or why not.
(b). Why should this employee probably choose to tell only some of the other firms rather than all of them?
(c). What factors willdetermine the best number of firms to sell the secret to? (assume that those who get the information keep the secret instead of selling it to still others.)

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M964160

Have any Question?


Related Questions in Microeconomics

Question john and jane are friends and they both work at

Question: John and Jane are friends and they both work at the university. They shop at the same stores, have the same circle of friends, and spend most of their time at or around the university. John decides to live in t ...

Question what is the maximum amount you would pay for an

Question: What is the maximum amount you would pay for an asset that generates an income of $10,000 at the end of each of the three years of the opportunity cost of using funds is 3.5 percent? The response must be typed, ...

Question wendys serves its hamburgers fresh off the grill

Question: Wendy's serves its hamburgers "fresh off the grill" This ensures high quality but creates leftover burgers if the staff overestimates the demand. Wendy's solves this problem by using the meat in chili, tacos, a ...

The number has jumped 60 since last year when prices were

The number has jumped 60% since last year. When prices were falling, the number fell from 2,000 in 2015 to only 480 in 2016. For the week of March 10, 2017 the number was at 762. The elasticity of the supply is around 0. ...

Question - price elasticity cross-price elasticity and

Question - Price Elasticity, Cross-Price Elasticity, and Income Elasticity in the Market for Alcoholic Beverages Many public policy issues are related to the consumption of alcoholic beverages. These issues include under ...

Question since we are at full employment draw a as-ad graph

Question: Since we are at full employment, draw a AS-AD graph showing us at full employment. Be sure to label everything. a. Now suppose oil prices double over the next 12 months. Draw and label the impact of the change ...

Question also during the 1990s the ratio of capital

Question: Also during the 1990s, the ratio of capital spending to GDP rose, while the personal saving rate declined almost to zero. The profit ratio did not rise very much; hence almost the entire increase in saving came ...

Question imagine that you are the administrator of a city

Question: Imagine that you are the administrator of a city hospital and you have been asked by your hospital's legal counsel to prepare a presentation for your hospital's medical team that discusses negligence in the hea ...

Question a balance sheet is often used by analysts to

Question: A balance sheet is often used by analysts to examine a company from a financial point of view. Describe the strengths and weaknesses of the document for this purpose. The response must be typed, single spaced, ...

Question explain which factors would cause the is curve to

Question: Explain which factors would cause the IS curve to be steeper, and which would cause it to be flatter. When is the IS curve more likely to be steep - during recessions or booms? The response must be typed, singl ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved