Please answer the following questions. Submit as a Microsoft Word® document to the Dropbox when completed.
1. How does the demand curve faced by a perfectly competitive firm differ from the market demand curve in a perfectly competitive market? Explain.
2. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firm’s product is $140.
Output FC VC TC TR Profit/Loss
0 $90 $ 0 ___ ___ ___
1 90 90 ___ ___ ___
2 90 170 ___ ___ ___
3 90 290 ___ ___ ___
4 90 430 ___ ___ ___
5 90 590 ___ ___ ___
6 90 770 ___ ___ ___
a. Complete the table.
b. What level of output should the firm produce to maximize profits?
3. How does the demand curve faced by a monopoly differ from the demand curve faced by a perfectly competitive firm? Explain.
4. The following table provides market share information about the soft-drink industry.
|
Company
|
Market Share
|
|
Coca-Cola
|
37%
|
|
Pepsi-Co
|
35
|
|
Cadbury Schweppers
|
17
|
|
Other
|
11
|
Do you think the Department of Justice and the Federal Trade Commission would approve a merger between any two of the first three companies listed? Explain.
Directions for Submitting your Assignment
Complete your assignment in this Microsoft Word® document and save it as Username-MT445Assignment-Unit#.doc (Example:TAllen-MT445Assignment-Unit4.doc). Submit your file by selecting the Unit 4: Assignment Dropbox by the end of Unit 4.
