EC 201 Competition Assignment, Fall, 2009

EC 201 Competition Assignment, Fall, 2009 - EC 201 Cal Poly...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
EC 201 Name: Cal Poly Pomona Section: Dr. Bresnock Fall, 2009 Competition Module Assignment (50 points) Due : Nov. 30 th in class lecture Please limit your answers to the spaces provided. If necessary, write on the back of the page. Do not attach printout or additional pages. All questions pertain to the Competition module in the SimEcon software package. Make sure you have read the “ Competition Manual” which may be found at the ClassWeb site prior to beginning the assignment. For many of the assignment's questions, it will be necessary to refer to those instructions. For many of the assignment's questions, it will be necessary to refer to your text. Please use this website to obtain the module: http://class-ms-web.class.csupomona.edu/ Open the Competition module of SimEcon ® . You will see a table entitled “Firm’s Short Run Costs”. Print out a copy of this table for your own use. If will be useful throughout the assignment. Click “Continue”, then “Set the Market Price Manually”, and enter a market price $13.00. Click ‘Continue” and enter the output that the firm should produce in order to come closest to maximizing profits or minimizing losses? ____________. (This will require some iterations on your part.) Is the firm earning an economic profit at this output level? __________ (Yes, No). Why or why not? . What is the breakeven price? . What is the shut down price? ____________. Click “Continue”, then “Set the Market Price Manually”. Enter a price of $10.00 and “Continue”. Enter an output of 8,000 units and click “Results”. Fill in the values for the table below. Price:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

EC 201 Competition Assignment, Fall, 2009 - EC 201 Cal Poly...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online