Microeconmics Brno
Páginas: 3 (696 palabras)
Publicado: 12 de julio de 2011
Working Paper – Competition
4.8.3 TOS-Construct Company
The table below lists cost data (in Euros) for TOS-Construct, a firm producing concrete blocks for construction (output (x) in thousandsper day).
x fc srvc srtc afc sravc sratc Srmc
0 0 50 ∞ - ∞ -
1 10
2 68 34
3 28
4 92 14
5 12
6 24
7 169
8 168 21
a) Complete all the blanks inthe table.
b) On the graph paper, nearly plot afc, avc, atc and mc (all in Euros) vs. Output. Plot mc points between the integers, i.e. at x = 0.5, 1.5, 2.5 etc.
c) On your graph, indicate theTOS-Construct´s short-run supply curve.
d) If the price set in a competitive market is 30e per thousand, how much should this firm produce? How much profit will the firm receive?
e) At what price wouldthe firm make zero profit?
f) If the price is 16e per thousand, how much should he firm produce in the short-run? How much profit will the firm receive? How much should they produce in the long-run?5.4.4 BlaBlah Publishing Company
As chief economist of BlaBlah Publishing Co., (a firm perfectly competitive industry) you have been asked to present the company´s profit/loss situation at theAnnual General Meeting of stock holders.
Show, using graphs, three alternative short-run scenarios:
I. The firm making profit
II. The firm making losses but continuing to produce
III. The firm makingzero economic profit.
Clearly label the areas denoting profit/loss. When should the firm shut-down in the short-run?
7.4.3 Consider the following industries in Czech Republic
Would youcharacterize each as a perfectly competitive industry? If not, explain why.
a) The market for IBM-compatible PCs, which are practically “identical” but come with different servicing and warranty contracts.b) The market for mainframe computers.
c) The pizza delivery market.
d) The market for cable TV.
e) The market for second-handed cars.
f) The labor market for college jobs in Brno.
8.5.2...
4.8.3 TOS-Construct Company
The table below lists cost data (in Euros) for TOS-Construct, a firm producing concrete blocks for construction (output (x) in thousandsper day).
x fc srvc srtc afc sravc sratc Srmc
0 0 50 ∞ - ∞ -
1 10
2 68 34
3 28
4 92 14
5 12
6 24
7 169
8 168 21
a) Complete all the blanks inthe table.
b) On the graph paper, nearly plot afc, avc, atc and mc (all in Euros) vs. Output. Plot mc points between the integers, i.e. at x = 0.5, 1.5, 2.5 etc.
c) On your graph, indicate theTOS-Construct´s short-run supply curve.
d) If the price set in a competitive market is 30e per thousand, how much should this firm produce? How much profit will the firm receive?
e) At what price wouldthe firm make zero profit?
f) If the price is 16e per thousand, how much should he firm produce in the short-run? How much profit will the firm receive? How much should they produce in the long-run?5.4.4 BlaBlah Publishing Company
As chief economist of BlaBlah Publishing Co., (a firm perfectly competitive industry) you have been asked to present the company´s profit/loss situation at theAnnual General Meeting of stock holders.
Show, using graphs, three alternative short-run scenarios:
I. The firm making profit
II. The firm making losses but continuing to produce
III. The firm makingzero economic profit.
Clearly label the areas denoting profit/loss. When should the firm shut-down in the short-run?
7.4.3 Consider the following industries in Czech Republic
Would youcharacterize each as a perfectly competitive industry? If not, explain why.
a) The market for IBM-compatible PCs, which are practically “identical” but come with different servicing and warranty contracts.b) The market for mainframe computers.
c) The pizza delivery market.
d) The market for cable TV.
e) The market for second-handed cars.
f) The labor market for college jobs in Brno.
8.5.2...
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