KAPLAN MT445 UNIT 5 ASSIGNMENT LATEST 2016 FEBRUARY

Question # 00234571 Posted By: kimwood Updated on: 04/02/2016 12:34 AM Due on: 05/02/2016
Subject Economics Topic Managerial Economics Tutorials:
Question
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Unit 5 Assignment

Student Name:

Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed.

1. How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market? Explain.

2. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $140.

Output FC VC TC TR Profit/Loss

0 $90 $ 0 ___ ___ ___

1 90 90 ___ ___ ___

2 90 170 ___ ___ ___

3 90 290 ___ ___ ___

4 90 430 ___ ___ ___

5 90 590 ___ ___ ___

6 90 770 ___ ___ ___

a. Complete the table.

b. What level of output should the firm produce to maximize profits?

c. Assume this firm is making a loss when it produces its 7th unit of output. What should the firm do in the short-run?

3. How does the profit maximization condition for a monopoly differ from that for a perfectly competitive firm? How does this difference impact efficiency under each market structure?

4. The following table provides market share information about the soft-drink industry.

Company

Market Share

Coca-Cola

37%

Pepsi-Co

35

Cadbury Schweppers

17

Other

11

a. Do you think the Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companies listed? Explain.

b. Do you think this market has barriers to entry? If so, what might they be?

Directions for Submitting your Assignment

Complete your Assignment in this Microsoft Word® document and save it as Username-MT445Assignment-Unit#.doc (Example:TAllen-MT445Assignment-Unit5.doc). Submit your file by selecting the Unit 5: Assignment Dropbox by the end of Unit 5.

Unit 5 Assignment

Content and Analysis

Points Possible

Points Earned

Problem #1

How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market? Explain.

8

Problem #2

A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $140. Complete the table (a)

7

What level of output should the firm produce to maximize profits? (b)

4

Assume this firm is making a loss when it produces its 7th unit of output. What should the firm do in the short-run? (c)

4

Problem #3

How does the profit maximization condition for a monopoly differ from that for a perfectly competitive firm? How does this difference impact efficiency under each market structure?

8

Problem #4

The following table provides market share information about the soft-drink industry. (a-b)

8

Writing Style, Grammar, and APA Format.

6

Total

45

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Tutorials for this Question
  1. Tutorial # 00229779 Posted By: kimwood Posted on: 04/02/2016 12:34 AM
    Puchased By: 2
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    sloping curve; however a perfectly competitive firm’s demand curve ...
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