Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need solve 1-3-5 1. Why is constant return to scale incompatible with perfect competition? 2. What is price discrimination? What are the necessary conditions

image text in transcribed
i need solve 1-3-5
1. Why is constant return to scale incompatible with perfect competition? 2. What is price discrimination? What are the necessary conditions of price discrimination? What companies use price discrimination? 3. Consider the following production function: q=2V1 + 3VK Assume K = 16, derive the marginal product schedule for L. What direction is it moving? What returns to scale does the production function exhibit? Explain Let w = $4, r = $2, and K = 16; for the given values of a determine average fixed costs, average variable costs, average total costs, and marginal costs: a. b. C. L AFC AVC ATC MC 9 12 13 14 15 16 K 16 16 16 16 16 4. "Monopolies perpetuate inflation. When wages rise, a monopoly simply passes on the increased cost in its price. Competitive firms would not be able to do that." Do you agree? What are the differences between how a monopoly and a competitive firm respond to cost increases? 5. The long-run supply curve for gem diamonds is positively sloped because increases in diamond output increase the wages of diamond cutters. Explain why a decision by people to no longer buy diamond engagement rings would have disastrous consequences for diamond cutters but why such a trend would not really harm the owners of firms in the perfectly competitive gem diamond business

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics A Problem-Solving Approach

Authors: Luke M. Froeb, Brain T. Mccann

2nd Edition

B00BTM8FK0

More Books

Students also viewed these Economics questions

Question

Comparing GDP among Countries

Answered: 1 week ago

Question

2. Initialize (the values in ).

Answered: 1 week ago