KAPLAN MT445 UNIT 5 ASSIGNMENT LATEST 2016 FEBRUARY
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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Rating:
5/
Solution: KAPLAN MT445 UNIT 5 ASSIGNMENT LATEST 2016 FEBRUARY