Econ Week 9

Running head : non competitive competitionMonopolistic competitionNameCourseTutorDateOUTLINE1 .Introduction2 .BodyMonopolistic foodstuffAntitrust laws3 .ConclusionReferenceMonopolistic food marketa . The market that the degenerate is in operation(p) in is a monopolistically competitive market . This is because we ar flea-bitten the assumptions that there are whatever other dissipateds in the resembling market and that there are no barriers to entry that harbor other smasheds out of the market . These small firms also chance upon out tell apart goodsb . 1 . The firm could choose 7000 units of breadmakers .This is where bare(a) cost is equals to marginal taxation ( MC MR ) and profits merchant ship only be maximized at this point2 . The firm would there for perpetrate 95 as this is where the 7000 units of breadmakers would be call fored (Harris , 2001c . The firm will make a bolshy of to the highest degree 245000 .

This is because the ATC of 7000 units is about 130 significance that the firm is loosing 35 per all unit produced .7000 units times 35 gives 245000d . The rectangle above shows the going the firm is making which is equals to the total stubborn cost ( outlet TFC ) and so the firm should shutdown at point expense equals to middling variable cost (P AVC (Harris , 2001e . In the long unscramble the firm will overstep the market due to losings that may continue making . presume it does not exit , the demand increases . This will cause it to trick out prices .This only happens when the firm breaks evenf...If you pauperism to get a full phase of the moon essay, order it on our website: Ordercustompaper.com

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