This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In a market characterized by a single seller and many buyers, will a seller's initiative to improve ... (Read 111 times)

oliviahorn72

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
In a market characterized by a single seller and many buyers, will a seller's initiative to improve the quality of its product at a higher cost of production be profitable?

Question 2

Product differentiation in monopolistically competitive markets ensures that ____ in equilibrium.
 a. marginal cost will exceed average revenue
 b. price will exceed marginal cost
 c. average variable cost will be declining
 d. marginal revenue will equal average total cost


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

snackralk

  • Sr. Member
  • ****
  • Posts: 363
Reply #1 on: Jun 30, 2018
Answer to Question 1

The success of the strategy will depend on the relationship between changes in the cost of production and changes in the buyer's valuation. If the increase in the cost of production is lower compared to the increase in the buyer's valuation, the strategy will be profitable. However, if the increase in the buyer's valuation of the improved good is lower than the increase in the cost of production then the strategy will prove to be unprofitable.

Answer to Question 2

b


oliviahorn72

  • Member
  • Posts: 579
Reply 2 on: Jun 30, 2018
Wow, this really help

vickyvicksss

  • Member
  • Posts: 351
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Cade and colleagues discovered a way to improve athletic performance and prevent salt and water imba Cade and colleagues discovered a way to improve athletic performance and prevent salt and water imba
Covering the interior as soon as the vehicle comes in for service helps improve customer ... Covering the interior as soon as the vehicle comes in for service helps improve customer ...
Short, Upbeat Massage Sessions can Improve Mental Alertness. Short, Upbeat Massage Sessions can Improve Mental Alertness.
Conformations of single-stranded nucleic acids Conformations of single-stranded nucleic acids
Plan of Trajan's Forum and Market "خطة منتدى ترجان والسوق" Plan of Trajan's Forum and Market "خطة منتدى ترجان والسوق"
Summary of Single Variable Discrete Models Summary of Single Variable Discrete Models
Video: Bond in biological molecules (Ionic, Covalent and Hydrogen bonds)/ How atoms bond?

For a complete list of videos, visit our video library