ECO 211 HA8

ECO 211 HA8 - a. perfectly competitive b. not perfectly...

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Microeconomics 211 Chapter 8: Firms in Perfectly Competitive Markets HA 8 ( #1.1, 1.2, 1.4, 4.3) 1.1) a. Must be many buyers and many firms, all of which are small relative to the market. b. Products sold by all firms in the market must be identical. c. Must be no barriers to new firms entering the market. 1.2) A price taker is a buyer or seller that is unable to affect the market price. If a perfectly competitive firm tries to raise its price, it won’t sell anything at all because consumers will switch to buying the product from the firm’s competitors. Therefore, the firm will be a price taker and will have to charge the same price as every other firm in the market. 1.4)
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Unformatted text preview: a. perfectly competitive b. not perfectly competitive it is a monopolistic competition, products are differentiated c. not perfectly competitive it is an oligopoly; few firms, products are identical or differentiated, and ease of entry is low. d. not perfectly competitive it is an oligopoly; products are differentiated 4.3) Output per Week Total Cost AFC AVC ATC MC $100 $100 $0 $100.00 $0 1 150 100 50.00 150.00 50 2 175 100 37.50 87.50 25 3 190 100 30.00 63.33 15 4 210 100 27.50 52.50 20 5 240 100 28.00 48.00 30 6 280 100 30.00 46.67 40 7 330 100 32.86 47.14 50 8 390 100 36.25 48.75 60 9 460 100 40.00 51.11 70 10 540 100 54.00 54.00 80...
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ECO 211 HA8 - a. perfectly competitive b. not perfectly...

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