Question

Offered Price $ 12.00

Suppose the monopolistically competitive barber shop

Question # 00554225
Subject: Economics
Topic: Microeconomics
Due on: 06/29/2017
Posted On: 06/29/2017 06:46 AM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
98267
Tutorials:
98494
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

This is microeconomics. Please write graphs and explanation.


Suppose the monopolistically competitive barber shop industry in a community is in long-run equilibrium, and that the typical price is $20 per haircut. Moreover, the population is rising.

  1. Illustrate the short-run effects of a change on the price and output of a typical firm in the market.
  2. Show what happens in the long run. Will the final price be higher than $20? Equal $20? Be less than $20? Assume that nothing happens to the cost of producing haircuts.
  3. Suppose that, initially, the price of a typical children’s haircut is $10. Do you think this represents price discrimination? Why or why not?

Consider the same industry as in Problem 1. Suppose the market is in long-run equilibrium and that an annual license fee is imposed on barber shops.

  1. Illustrate the short-run effects of the change on the price and output of haircuts for a typical firm in the community.
  2. Now show what happens to price and output for a typical firm in the long run.
  3. Who pays the fee in the long run? How does this compare to the conclusions of the model of perfect competition?
Tutorials for this Question
Available for
$ 12.00

Suppose the monopolistically competitive barber shop

Tutorial # 00551606
Posted On: 06/29/2017 06:46 AM
Posted By:
Best Tutors for school students, college students dr.tony
Expert tutors with experiences and qualities
Questions:
98267
Tutorials:
98494
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview … the …
Attachments
Monopolistic_Market.docx (458.54 KB)
Preview: and profits.Consider the same industry as in Problem 1. Suppose the mark.....
Purchase this Tutorial @ $12.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
List of Main Subjects
Accounting
Anthropology
Architecture
Art
Asian Studies
Astronomy
Biology
Business
Chemistry
Communications
Computer Science
Economics
Education
Engineering
English
Finance
Foreign Languages
Gender Studies
General Questions
Geography
Geology
Health Care
History
Kindergarten
Law
Linguistics
Literary Studies
Marketing
Mathematics
Music
Nursing
Performing Arts
Philosophy
Physics
Political Science
Psychology
Religious Studies
Sociology
Statistics
Urban Planning and Policy
View all subjects...
Loading...