Preempting demand, gaining volume cost advantages, building the brand, and establishing a long-term competitive advantage are associated with
What will be an ideal response?
first mover advantages
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Basically, the marginal principle helps us to evaluate the factors involved in taking an action or if doing something is worth the effort
Indicate whether the statement is true or false
Perfect price discrimination means:
A. charging each consumer a price exactly equal to his or her willingness to pay. B. charging the exact same price to each consumer regardless of his or her willingness to pay. C. charging different prices to different consumers so as to maximize consumer surplus. D. charging each consumer a price exactly equal to the marginal cost of selling the good to that consumer.
Assume the following cost information about Fred's widget company: Its fixed cost is $27, and its total variable cost is $18 for 1 unit; $33 for 2; $45 for 3; $60 for 4; and $78 for 5 . Given this information: a. the marginal cost of providing the second unit is $15. b. the total cost of producing 4 units is $87
c. the average total cost of producing five units is $21. d. all of the above are true.
Which of the following statements is correct?
a. In the long run, both perfectly competitive firms and monopolistically competitive firms operate with excess capacity. b. A firm operates with excess capacity when, in the long run, its level of output is below the efficient scale. c. For any firm, efficient scale is the level of output at which the average-total-cost curve is tangent to the demand curve. d. All of the above are correct.