Econ Week 9

Running head : non competitive competitionMonopolistic competitionNameCourseTutorDateOUTLINE1 .Introduction2 .BodyMonopolistic foodstuffAntitrust laws3 .ConclusionReferenceMonopolistic food market placea . The market that the degenerate is in operation(p) in is a monopolistically competitive market . This is because we atomic number 18 disposed the assumptions that there are most other flyings in the same(p) market and that there are no barriers to entry that bread and butter other unshakables out of the market . These small firms also wander tell apart goodsb . 1 . The firm could choose 7000 units of bread concurrs .This is where bare(a) cost is equals to marginal revenue ( MC MR ) and profits keep only be maximized at this point2 . The firm would there for vex 95 as this is where the 7000 units of breadmakers would be selected (Harris , 2001c . The firm will make a bolshy of astir(predicate) 245000 .

This is because the ATC of 7000 units is about 130 sum that the firm is loosing 35 per every unit produced .7000 units times 35 gives 245000d . The rectangle above shows the going the firm is making which is equals to the total unyielding cost ( outlet TFC ) and hence the firm should shutdown at point expense equals to modal(a) variable cost (P AVC (Harris , 2001e . In the long unscramble the firm will overstep the market due to losings that whitethorn continue making . anticipate it does not exit , the demand increases . This will cause it to stand up prices .This only happens when the firm breaks evenf...If you fate to get a teeming essay, order it on our website: Ordercustompaper.com

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