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Short run profit max for a perfectly competitive firm
// politics
21 days ago
by Jeff
We know that in the long run in a perfectly competitive market, economic profit should equal zero. This happens because firms are free to enter and exit the market. If there is positive economic profit, then firms will enter the market to make those economic profits until there is no economic profit ...
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Monopoly price decisions, a question and answer
22 days ago
by Jeff
Here is a quick economics question and answer regarding monopolies: A monopolist has two types of customers. There are 100 Type A, who will each pay up to $10 for a single unit of the good, and 50 of Type B, who will each pay up to $8. Neither is willing to purchase additional units at any price. If ...
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Legalize marijuana? The case for legalized marijuana with taxes
22 days ago
by Jeff
The following information is found on many places on the web, and some have asked questions about the economics occuring in the passage. At the end of this post, I will go over some economic questions, and show the related graphs to detail their relationship with the ideas stated in this article: "S ...
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