Homework Answers
Two firms producing identical products may merge due to the existence of economics of scale.
Economies of scale exist when there is decrease in average cost as there is an increase in production.
Answer: Option (b).
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Two firms producing identical products may merge due to the existence of Multiple Choice economies of...
Seved Help When there are economies of scope between two products which are separately produced by...
Seved Help When there are economies of scope between two products which are separately produced by two firms, merging into a single firm can! Multiple Choice 0 accomplish an increase in sales. accomplish a reduction in costs. ( lead to an increase in cost. ( lead to a reduction in sales.
Economies of scale refers to when: In the long run when average total cost does not...
Economies of scale refers to when:
In the long run when average total cost does not depend on the
quantity of output, this is called:
Commodities:
We assume that in the long run in a perfectly competitive
market:
Multiple Choice an increase in the quantity of output increases average total cost in the long run. None are correct. average total cost does not depend on the quantity of output in the long run. an increase in the quantity of output...
an economy is made up of a large number of identical firms producing identical products with...
an economy is made up of a large number of identical firms producing identical products with same cost curves. The firms all make the same positive accounting profits. therefore their economic profits must be a)positive b)negative c)Zero d) cant say for sure
Two firms, each producing different goods, can achieve a greater output than one form producing both...
Two firms, each producing different goods, can achieve a greater output than one form producing both goods with the same inputs. We can conclude that the production process involves: o diseconomies of scope. o decreasing returns to scale. increasing returns to scale. O economies of scale.
Consider an industry with N identical firms producing a homogeneous product and competing in quantities. The...
Consider an industry with N identical firms producing a homogeneous product and competing in quantities. The demand function is given by Q = α − P and each firm has constant marginal cost c. Two of the firms are planning to merge. If this merger occurs, the industry would then consist of N – 1 identical firms. Would such a merger occur? Comment more generally on the incentives for merger in oligopoly.
2. "Economies of scope" exhibits when the joint cost of producing two or more goods is...
2. "Economies of scope" exhibits when the joint cost of producing two or more goods is less than the sum of the separate costs. One of the examples is the oil refinery using the exhausted heat to cogenerate electric power. Please provide one more example of industry exhibiting economies of scope. A URL reference link to support your answer is a plus. Please answer all the two questions by one paragraph for each
Multiple Choice - Choose the correct alternative 1. The long-run competitive market supply curve is: a)...
Multiple Choice - Choose the correct alternative
1. The long-run competitive market supply curve is: a) The portion of the firms MC curve that is above the ATC curve b) The portion of the firms MC curve that is above the AVC curve c) The horizontal summation of all the firm's short-run supply curves d) A curve that is equal to the minimum of ATC e) a) and d) 2. Suppose the firms production process is given by Q =...
1.Consider an industry with only two firms that produce identical products. Each of the firms only...
1.Consider an industry with only two firms that produce identical products. Each of the firms only incurs a fixed cost of $1000 to produce and marginal cost is 20. The market demand function is as follows: Q=q1+q2=400-P a. Assuming that the firms form a cartel, calculate the profit-maximizing quantity of output, price and profits b. If the firms choose to behave as in the Cournot model, what would be the profit- maximizing quantities of output, price and profits? c. if...
New trade theory argues that, through its impact on economies of scale, trade can Multiple Choice...
New trade theory argues that, through its impact on economies of scale, trade can Multiple Choice increase the variety of goods available to consumers. increase the average costs of goods. enable the global market to support a wide range of enterprises. prevent diminishing of returns and promote constant returns to specialization. negatively affect the first-mover advantage for all products
1. The four market structures are and firms are producing a firms are produc 2. Perfect...
1. The four market structures are and firms are producing a firms are produc 2. Perfect competition is a market structure in which - - product and entry is 3. Monopolistic competition is a market structure in which ing a product and entry is 4. Oligopoly is a market structure in which product and entry is - 5. Monopoly is a market structure in which firms are producing a firm supplies a product and entry 6. Oligopoly is the only...
Seved Help When there are economies of scope between two products which are separately produced by two firms, merging into a single firm can! Multiple Choice 0 accomplish an increase in sales. accomplish a reduction in costs. ( lead to an increase in cost. ( lead to a reduction in sales.
Economies of scale refers to when:
In the long run when average total cost does not depend on the
quantity of output, this is called:
Commodities:
We assume that in the long run in a perfectly competitive
market:
Multiple Choice an increase in the quantity of output increases average total cost in the long run. None are correct. average total cost does not depend on the quantity of output in the long run. an increase in the quantity of output...
Two firms, each producing different goods, can achieve a greater output than one form producing both goods with the same inputs. We can conclude that the production process involves: o diseconomies of scope. o decreasing returns to scale. increasing returns to scale. O economies of scale.
2. "Economies of scope" exhibits when the joint cost of producing two or more goods is less than the sum of the separate costs. One of the examples is the oil refinery using the exhausted heat to cogenerate electric power. Please provide one more example of industry exhibiting economies of scope. A URL reference link to support your answer is a plus. Please answer all the two questions by one paragraph for each
Multiple Choice - Choose the correct alternative
1. The long-run competitive market supply curve is: a) The portion of the firms MC curve that is above the ATC curve b) The portion of the firms MC curve that is above the AVC curve c) The horizontal summation of all the firm's short-run supply curves d) A curve that is equal to the minimum of ATC e) a) and d) 2. Suppose the firms production process is given by Q =...
1. The four market structures are and firms are producing a firms are produc 2. Perfect competition is a market structure in which - - product and entry is 3. Monopolistic competition is a market structure in which ing a product and entry is 4. Oligopoly is a market structure in which product and entry is - 5. Monopoly is a market structure in which firms are producing a firm supplies a product and entry 6. Oligopoly is the only...
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