Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Microeconomics Expert

Consider the demand for boccie balls shown in the diagram below. Demand is given by P = 80 - Q. Boccie balls can be produced at a constant marginal and average total cost of $20.
a. If the boccie ball industry were perfectly competitive, what quantity would be sold, and what price would prevail in the market?
b. Suppose that the boccie ball industry were a monopoly. Draw in a marginal revenue curve and determine the profit-maximizing quantity.
i. Divide the monopoly (one-firm) quantity by the competitive quantity to determine the proportion of competitive output that a monopolist provides. Present your answer in reduced fractional form.
ii. Determine the price, and draw a dot on the demand curve indicating the monopolist's price and quantity.
c. Suppose the boccie ball industry were a Cournot duopoly (two-firm), with two firms. Use the procedures developed in this chapter to determine the industry output.
i. Divide the duopoly quantity by the competitive quantity to determine the proportion of competitive output that a duopoly provides. Present your answer in reduced fractional form.
ii. Determine the price, and draw a dot on the demand curve indicating the duopoly's price and quantity.
d. Hypothesize as to the fraction of competitive output that would be sold if the boccie ball industry had three identical Cournot competitors. Then check your answer.
e. In general, what fraction of the competitive output level will be brought to market if there are N identical firms in the industry?
f. What happens to the quantity sold as more competitors are added to the industry? The price? What happens to consumer surplus and deadweight loss? Does this provide support for the government's desire to ensure competitive industries rather than monopolies or small oligopolies?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M938582

Have any Question? 


Related Questions in Microeconomics

Short answer amp essay questionsyou must complete two short

Short Answer & Essay Questions You must complete two Short answer questions and one Essay question All answers must be in the form of a paragraph (minimum of 5 sentences per paragraph). Please select from below: Short An ...

Assignmentwrite a 5-6 page paper on one of the following

Assignment Write a 5-6 page paper on ONE of the following topics. Advice: Read the question you choose very carefully, and make sure you are answering it. What you write must be clearly relevant to answering the question ...

Questionsexercisesseminar 11nbsp discuss what you

Questions/Exercises Seminar 1 1.  Discuss what you understand by the following: a) the law of demand b) the conditions of demand c) a demand curve d) a normal good e) an inferior good f) a Giffen good G) the law of suppl ...

Assignmentlearning objectives covered1explain 3 ways the

Assignment Learning Objectives Covered: 1. Explain 3 ways the statement of goals, application of rewards, and institution of discipline affect and motivate ethical behavior in individuals 2. Demonstrate how roles and aut ...

The economy is full employment now the government wants to

The economy is full employment. Now the government wants to change the composition of demand toward investment and away from consumption without, however, allowing aggregate demand to beyond full employment. What is requ ...

Create the demand and supply of the labor market and demand

Create the demand and supply of the labor market and demand and supply of the goods market using the production function and consumption utility function given. Solving the equations and graphing the models have to be th ...

Assignment money and pricethe organizations strategic plan

Assignment: Money and Price The organization's strategic plan you wrote about calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five ye ...

Question 1the document that lists and details the contents

Question 1 The document that lists and details the contents and conditions of a shipment is called: A. The Tariff B. Proof of Delivery C. The Invoice D. The Bill of Lading Question 2 Declining transport rates as the quan ...

Assignmentthe agile approach towards system analysis and

Assignment The agile approach towards system analysis and development emphasizes iterative and incremental development, in which requirements and solutions evolve through collaboration. Prepare a 1000 word essay on the r ...

1 this question is for discussion in teamsas the semester

1. This question is for discussion in teams. As the semester progresses. we will discuss these issues in class. Visit The World Factbook at https://www.cia.govlibrarypublications:The-world-factbook'. In "Please select a ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen