Describe the demand curve for a perfectly competitive firm and explain why the demand curve looks the way it does. 2. (a) What are the two critical questions a firm must answer? (b) What is the main economic objective of every firm? 3. a) F
1200 words total between the 6 questions….3 References in APA format…..
- Describe the demand curve for a perfectly competitive firm and explain why the demand curve looks the way it does.
2. (a) What are the two critical questions a firm must answer?
(b) What is the main economic objective of every firm?
3. a) Fill in the table below and answer the following questions. Show your step-by-step calculations either by typing them in the text box below or by submitting a photo of your handwritten calculations to the Drop Box.
(b) How much output will the firm choose to produce? Explain why the firm chooses this level of output.
|
Quantity |
Price |
Total Revenue |
Total Cost |
Profit |
Marginal Revenue |
Marginal Cost |
|
0 |
$45 |
$50 |
||||
|
1 |
$45 |
$90 |
||||
|
2 |
$45 |
$120 |
||||
|
3 |
$45 |
$140 |
||||
|
4 |
$45 |
$170 |
||||
|
5 |
$45 |
$210 |
||||
|
6 |
$45 |
$260 |
||||
|
7 |
$45 |
$330 |
4. Choose a firm that has monopoly power. Explain how each of the three barriers to entry would apply to that firm. Do not choose a firm that is covered in the text or course materials.
5. Describe the demand curve for a monopolist. Why does the monopolist’s demand curve look different than the demand curve of a perfectly competitive firm?
6. What is meant by Average Cost Pricing in terms of monopoly regulation? Discuss the difficulties in Average Cost Pricing.
