Questions from General Economics

Q: Ball Bearings, Inc. faces costs of production as follows:

Ball Bearings, Inc. faces costs of production as follows: a. Calculate the company’s average fixed costs, average variable costs, average total costs, and marginal costs at each le...

Q: Does a competitive firm’s price equal its marginal cost in the short

Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? Explain.

Q: Describe the three attributes of monopolistic competition. How is monopolistic competition

Describe the three attributes of monopolistic competition. How is monopolistic competition like monopoly? How is it like perfect competition?

Q: Does a competitive firm’s price equal the minimum of its average total

Does a competitive firm’s price equal the minimum of its average total cost in the short run, in the long run, or both? Explain.

Q: Draw the cost curves for a typical firm. Explain how a

Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and tota...

Q: In the long run with free entry and exit, is the

In the long run with free entry and exit, is the price in a market equal to marginal cost, average total cost, both, or neither? Explain with a diagram.

Q: How does a competitive firm determine its profit-maximizing level of

How does a competitive firm determine its profit-maximizing level of output? Explain. • When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market?

Q: Only one firm produces and sells soccer balls in the country of

Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist’s de...

Q: Based on market research, a film production company in Ectenia obtains

Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P = 1,000 − 10Q Total Revenue: TR = 1,00...

Q: Many schemes for price discriminating involve some cost. For example,

Many schemes for price discriminating involve some cost. For example, discount coupons take up the time and resources of both the buyer and the seller. This question considers the implications of cost...