20 days ago by Jeff

Here is a question I recently received about a perfectly competitive market and the introduction of government produced goods. What are the relevant economics??? "Assume that hotdogs are produced in a perfectly competitive industry where firms that currently operate and potential competitors both ha ...

20 days ago by Jeff

Understanding how a perfectly competitive firm works is important for answering some of these "tricky" questions about perfect competition. To be quite honest, I don't know exactly what the instructor is looking for in this case but I can make a pretty good guess based on the properties of a perfect ...

22 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 ...

26 days ago by Jeff

This economics post will go over the profit maximization behavoir of a perfectly competitive firm. Remember that when calculating the profit maximizaing point for any firm, it is imperative that we set marginal revenue equal to marginal cost (MR=MC). If we are at any other point, then there are pote ...

26 days ago by Jeff

Calculating equilibrium and graphing individual firms and their industry counterparts is common in intermediate microeconomics. This post will go over the economics of of a subsidy and its effects on the individual firm's cost structure as well as how the industry as a whole will change with the int ...

104 days ago by Jeff

This post will go over the economic concept of perfect competition. The question asks about one firm in a perfectly competitive market, and how a competitor’s price change will affect their own profits. 1. Laura is a Girl Scout troop leader, and like every other troop in the country, sells Girl Scou ...

116 days ago by dbhalling

Perfect competition is when no one producer or consumer has the ability to affect the market price and all producers and consumers compete for a homogenous product, driving down the cost of the product. Under perfect competition, a producer’s profit is eliminated or at least reduced to a trivial ret ...

135 days ago by Diablo

Forms of Consumer Market Structure – Perfect Competition, monopoly, oligopoly and monopol 1. Perfect Competition Market Type a perfectly competitive market occurs when the number of producers are very much at all by producing similar products and similar to the number of consumers that much. Example ...

139 days ago by Jeff

This post picks up from a previous post located here. In this post we will work on filling out the rest of this table: Equilibrium Q P PS CS Ext. Cost Eco. Surplus Competitive 70 25 Social 52.5 33.75 Monopoly 44.2 37.9 Read more »

140 days ago by Jeff

This post will be part of a series that considers three different market types, how to work the math to arrive at equilibrium values, and the associated consumer, producer, and economy wide surplus values associated with them. Suppose that the market for “rare earths” given by the following Demand ( ...