1112212017 Module Five Assessment Home I My courses ECON705 STACKED29424 FALL20 I7 I Moduie 5 Production and Cost Estimation Competitive Markets
Module Five Assessment Home I My courses ECON STACKED FALL I I Moduie Production and
Module Five Assessment Home I My courses ECON STACKED FALL I
Home I My courses ECON STACKED FALL I I Moduie Production and Cost Estimation Competitive Markets
Module Five Assessment Home I My courses ECON STACKED
FALL I I Moduie Production and Cost Estimation Competitive Markets
Module Five Assessment Home I My courses
Module Five Assessment
1112212017 Module Five: Assessment Home I My courses / ECON705-STACKED29424-FALL20'I7 I Moduie 5: Production and Cost Estimation: Competitive Markets...

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Please do help me answer the following attached questions Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment 8.jpg 1112212017 Module Five: Assessment Home I My courses / ECON705-STACKED—29424-FALL20‘I7 I Moduie 5: Production and Cost Estimation: Competitive Markets 1 Module Five: Assessment information Coffee shops in a large city would appear to be examples of competitive markets: there are numerous relatively small setters, each seller is a price-taker, and the products are quite similar. Question 8 Not yet answered Marked out of 1.00 How could we argue that this market is not competitive? Select one: U a. The individual coffee shops do not have the power to control price on many items that they sell, so they are not able to compete on price. .f‘\ K: b. Most coffee shops have a relatively small geographic range; they do not attract consumers from very far away, and thus do not compete with the coffee shops across town. 0 0. Each coffee shop is so small reiative to the size of the market that their actions do not affect the rest of the market, therefore they do not have to behave in a competitive way. u d. They usually purchase products from the same distributor: i.e., all coffee shops buy their Coke products from the same Coke distributor. Thus, individual coffee shops do not really compete with each other. httpsn'imoodle.lsus.edu/modlquizlattempt.php?attempt=3891 81 &page=2 113 ATTACHMENT PREVIEW Download attachment 9.jpg 1112212017 Module Five: Assessment Question 9 Not yet answered Marked out of 1.00 Could each coffee shop face a demand curve that is not perfectly elastic? Select one: D a. No; the conditions mentioned (many small sellers, price-takers, homogeneous products) guarantee that each of these industries wiif be perfectly competitive. Demand wilt aiways be perfectly eiastic. O b. No; since customers aren't willing to spend their morning visiting each coffee shop in a large city to ?nd the best deaf, then each ?rm‘s demand curve will be perfectly elastic since consumers do not have fuli information. O 0. Yes; if the individual ?rm demand curve is horizontal, then demand is not perfectly elastic. This will often be true for small sellers. (“i V d. Yes; if they have some degree of market power (e.g., they can charge slightly higher prices since consumers will not stop at every coffee shop in town to ?nd the cheapest latte), then they wilt not face perfectly elastic demand. ' Question 10 Not yet answered Marked out of 1.00 How pro?table do you expect coffee shops to be in the long run? Select one: Q 3. Even with a small amount of market power, it is still relatively easy to enter and exit these industries. Longnrun pro?ts will, likely be driven down close to zero. 0 b. Since these ?rms retain considerable market power (ability to set price), then they are expected to enjoy long-run positive pro?tability for the foreseeable future. ‘3‘ c. Because of rising prices of coffee, each of these industries is expected to suffer long-run losses for the foreseeable future. ‘3‘ of. Coffee shops that only sell coffee would be expected to enjoy long-run positive pro?ts since they can focus on only one product; coffee shops that sell a wide range of products would be expected to break even or take losses in the tong run because they will have an unfocused strategy. https:llmoodle.lsus.edulmodlquiz/attemptphp?attempt=3891B1&page=2 2i3

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