Discussion #6

12

12 unread replies.

12

12 replies.

1) What would be the profit maximizing quantity that a company would likely try to produce ifthe marginal cost did not rise ever - if it stayed the same no matter how many units are produced?Give a reason for your answer.

Also, I would like you to go to the section in the latter half of Chapter 9 that discusses the market structure of perfect competition.

1)I would like you to comment on the idea expressed by the author that there is not a good example of perfect competition in real life except grain farmers.

2)Can you think of any other industry where there are many, many competitors selling products that are considered by the customers to be identical (the customers could be anyone - regular people or big or small businesses) and are price takers?Try to come up with an example and explain how it fits perfect competition.

Keep in mind that different locations (like gas stations) technically mean that the product is different from the competition.You wouldn't go to any gas station in the state or country for your gasoline, would you?Therefore, even though the gasoline is roughly the same from station to station, the total experience of being a customer at different stationsis not.Also, gas stations set their own price, even though it seems that they play "follow the leader."They are not price takers.

I also want you to respond to at least two other students' posts with a positive, supportive, and/or constructivepost of at least a sentence or two at least that builds on the original post