/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Q. aFCT If the government were to decide... [FREE SOLUTION] | 91影视

91影视

Log out

Learning Materials

Features

Discover

Chapter 23: Q. aFCT (page 512)

If the government were to decide to limit the number of propane distributors to a handful of firms, would the propane-distribution industry still satisfy the characteristics of perfect competition? Explain.

Short Answer

Expert verified

Every stock's growth and financial linkages being standardized by just a substantial percentage both of customers and retailers.

Step by step solution

01

Introduction

Pure competition is really a conceptual monetary system for which real level of competition or sellers doesn't at all exists while multiple providers (and customers) all available as in market as soon supplying its same goods at fair value. Like a corollary, the provider has to have a small share that has little impact regarding current prices.

02

Given Information

Supplied to the market is rated the top industry setting since that greatest productively utilizes financial tools. As a corollary, straight antagonism also was emphasized.

03

Explanation

Only within trade, there is still a big buyers and sellers. Those that own chaotic, little, or moderate firms are vendors. Yet, an insufficient volume from both buying and selling maintains that market situation chains there in industry healthy. i.e., a customer would simply change enterprises to hunt for such item, while a vendor gains from such a huge pool among purchasers.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with 91影视!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Suppose that a firm in a perfectly competitive industry finds that at its current output rate, marginal revenue exceeds the minimum average total cost of producing any feasible rate of output. Furthermore, Marginal revenue (MR)is that the increase in revenue that results from the saleof 1 additional unit of output. While marginal revenue can remain constant overa specific level of output, it follows from the law of diminishing returnsand can eventuallyblock because the output level increases. Intheory, perfectly competitive firms continue producing output until marginal revenue equalsincremental cost.
Is the firm maximizing its economic profits? Why or why not?

Identify the characteristics of a perfectly competitive market structure

Suppose that the firm with the costs and revenues tabulated in Figure 23-2 is contemplating whether to produce 12 units of output. If it were to produce this many units, what (if anything) would happen to the market price? What would be the firm's marginal revenue for the 12th unit produced? What would be the firm's total revenues per hour?

Consider the diagram nearby, which applies to a perfectly competitive firm, which at present faces a market clearing price of \(20per unit and produces 10,000units of output per week.

a. What is the firm's current average revenue per unit?

b. What are the present economic profits of this firm? Is the firm maximizing economic profits? Explain.

c. If the market clearing price drops to \)12.50per unit, should this firm continue to produce in the short run if it wishes to maximize its economic profits (or minimize its economic losses)? Explain.

d. If the market clearing price drops to $7.50per unit, should this firm continue to produce in the short run if it wishes to maximize its economic profits (or minimize its economic loses)? Explain.

Consider a market for online movie rentals. The market supply curve slopes upward, the market demand curve slopes downward, and the equilibrium rental price equals $3.50. Consider each of the following events, and discuss the effects they will have on the market clearing price and on the demand curve faced by the individual online rental firm.

a. Peoples tastes change in favor of going to see more movies at cinemas with their friends and Family members.

b. More online movie-rental firms enter the market.

c. There is a significant increase in the price to consumers of Purchasing movies online.
See all solutions

Recommended explanations on Economics Textbooks

Taxation Economics

Read Explanation
View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.