Answering economics questions Explain why each of the following Essay

Answering economics questions Explain why each of the following statements is false. For each write the correct statement - Essay Example Thus, competitive profits are only those which are excess profits after the total costs are covered. Q7) Banana computer company has fixed costs of production of $100,000, while each unit costs $600 of labour and $400 of materials and fuel. At the price of $3000, each $10 reduction in price, banana computers increases 1000 units, calculate the marginal cost and marginal revenue for banana computers and determine is monopoly price and quantity. Q9) Explain the error in the following statement: "A firm out to maximize its profit will always charge the highest price that the traffic will bear". State the correct result, and use the concept of marginal revenue to explain the difference between the correct and the erroneous statements. It should be noted that the aim of the monopolist is not to maximize profit and not maximize the price. Monopolists can only do this by identifying the price level which yields the highest profits. This occurs at MC = MR which is not often the highest price that a monopolist can charge. Charging an overly high price reduces the quantity demanded and will increase the marginal cost resulting into a shrink in profit. Q1) Review collusive oligopoly and monopolistic competition, which are two theories of imperfect competition discussed in this chapter. Draw up a table that compares perfect competition, monopoly, and the two theories with respect to the following characteristics: (a) number of firms; (b) extent of collusion; (c) price vs marginal cost; (d) price vs. long run average cost; (e) efficiency. Factors Monopolistic competition Collusive Oligopoly Number of Firms Large number of sellers Few large producers Extent of Collusion No collusion Control over price but mutual interdependence Price vs. Marginal Cost Price increase will lead to a substantial decrease in demand, thus, higher MC Price increase wi

My first college experience Essay Example | Topics and Well Written Essays - 500 words

My first college experience - Essay Example I was nervous as well as excited about this initiation of this new chapter in my life. I enrolled in college and I adapted to my new surroundings very happily and I have learnt many important things which will be of assistance to me in my future. I took admission in Paris Junior College in Sulphur Springs Texas last semester to follow my dream of becoming a nurse. I was anxious about this new beginning and I thought that things would be really complicated and difficult for me to deal with. I thought that I would face communication problems with my colleagues as I was not aware what kind of language would be used in college. When I joined college, I realized that it was a totally new atmosphere for me and I started liking the new environment that I was in. I tried to grasp as much information as I could from my surroundings. Things were not as difficult as I had expected them to be. I could easily coordinate and communicate with my colleagues and I realized that the college served to provide a very healthy and welcoming atmosphere. Education was my first priority and my entrance into college motivated me further to work hard and give my attention to my studies. I found myself studying in a class amongst students who are much junior to me in age. These teenagers made me realize of my maturity and experience in life. I realized that I held much greater respect for my teachers and there was a strong dedication within me towards my studies. Being in college has made me appreciate the importance that education holds in the life of a person. It has provided me with the satisfaction that I am working towards the achievement of my goal. My first college experience has provided me with a sense of maturity and I realize the importance of knowledge and goals in the life of a person. I study in college and look forward to completing my education in the best possible manner. I am aware of the fact that I