Managerial Economics

posted by .

When developing short-run cost curves, it is assumed that all firms in perfect competition have the same cost curves and they all make identical short-run profits or losses. Contrast this to the real world and why individual firms might experience different cost curves and different profits.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. economics

    suppose a competitive market consists of identical firms with a constant long run marginal cost of $10. Suppose the demand curve is given by q=1000-p a)What are the price and quantity consumed in the long run competitive equilibrium?
  2. economics

    suppose a firm's constant-returns to scale production function requires it to use capital and labor in a fixed ratio of two workers per machine to produce 10 units and that the rental rates for capital and labor are given by v=1, w=3. …
  3. economics

    This is going to be really long, but I want to see if my answers are correct. This is problem number 10.10 in my Intermediate Microeconomics book. A perfectly competitive painted necktie industry has a large number of potential entrants. …
  4. Microeconomics

    When firms in a perfectly competitive market face the same costs, in the long run they must be operating: A) Under diseconomis of scale B) With small but positive levels of profit C) At their efficient scale D) All of the above are …
  5. Managerial Economics

    In a perfect competitive market, industry demand is P = 850 – 2Q, and industry supply is P = 250 + 4Q (supply is the sum of the marginal cost curves of the firms in the industry). Assume that all the firms collude to form a single …
  6. microeconomics

    The short-run cost curve for each firm's long run equilibrium output is C=y^2-20y+400. Calculate the short-run average and marginal cost curves. At what output level does short-run average cost reach a minimum?
  7. Economics

    A long-run supply curve is flatter than a short-run supply curve because A. firms can enter and exit a market more easily in the long run than in the short run. B. long-run supply curves are sometimes downward sloping. C. competitive …
  8. Microecomics

    Assume two firms have the same total costs of production. Firm A’s average variable cost if $5 per unit and firm B’s average variable cost is $7. Both firms have an average total cost of $8. If the current market price is $6 and …
  9. Microeconomics

    A perfectly competitive industry has a large number of potential entrants. Each firm has an identical cost structure such that long run average cost is minimized at an output of 10 units (qi=10 ). The minimum average cost is R5 per …
  10. economics

    Clearly explain the different market structure and how they determine the degree of competition among firms and how they maximise profits in the short run and long run Cite the source within the text and bibliography

More Similar Questions