Given that the ith firm has a 20% market share, the elasticity of demand for the industry (ŋT) equal -1 and the elasticity of the supply by other firms (∑0)equals 4, find the elasticity of demand of the ith firm (ŋi) using the formula below.
3. Draw the dead weight loss…
In a monopoly market there is the deadweight loss resulting to both allocative and productive inefficiencies. The monopolistic firm does not utilize all the available resources resulting in productive inefficiency; they set prices higher than their marginal ...
Cite this document
(“Intermediate Microeconomics Assignment Example | Topics and Well Written Essays - 250 words - 1”, n.d.)
Retrieved from https://studentshare.net/macro-microeconomics/706264-intermediate-microeconomics
(Intermediate Microeconomics Assignment Example | Topics and Well Written Essays - 250 Words - 1)
“Intermediate Microeconomics Assignment Example | Topics and Well Written Essays - 250 Words - 1”, n.d. https://studentshare.net/macro-microeconomics/706264-intermediate-microeconomics.
Oligopoly is a general economic method in the current society. The term “oligopoly” originates from the Greek “oligos” connoting "little or small” and “polein” implying “to sell.” When “oligos” is utilized in the plural, it means “few.” Therefore, Oligopoly is a condition in which a particular market is run by a small group of firms.
Therefore, eliminating taxes would prevent the government from reaching its desired revenue targets and this would result in a deficit between what the government spends and what it collects. Ans 2) A private good is one that is excludable in nature and is unique for every consumer.
Similarly if he spends his entire budget on food then he will be able to consume 0 unit of water and 4 unit of food. The table below shows that how the consumer is able to allocate his budget on food and water.
us, as beef price increases and since the customers are price sensitive, the demand will decrease as the consumers will resort to consuming chicken since they lower priced. The consumers will thus reduce consumption of beef and increase consumption of chicken.
The supply of
4 Pages(1000 words)Assignment
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Assignment on topic Intermediate Microeconomics for FREE!