Assignment 2 – Market Forms
Assignment 2: Market Forms
The following questions address some of the price and output decisions faced by firms other than those found in perfect competition. Some numbers may be rounded.
Table 1
Output
Average Fixed cost
Average Variable Cost
Average Total Cost
Marginal Cost
Price
Total Revenue
Marginal Revenue
0
$ 345.00
1
$ 180.00
$ 135.00
$ 315.00
$ 300.00
2
$ 90.00
$ 127.50
$ 217.50
$ 249.00
3
$ 60.00
$ 120.00
$ 180.00
$ 213.00
4
$ 45.00
$ 112.50
$ 157.50
$ 189.00
5
$ 36.00
$ 111.00
$ 147.00
$ 165.00
6
$ 30.00
$ 112.50
$ 142.50
$ 144.00
7
$ 25.71
$ 115.70
$ 141.41
$ 126.00
8
$ 22.50
$ 121.90
$ 144.40
$ 111.00
9
$ 20.00
$ 130.00
$ 150.00
$ 99.00
10
$ 18.00
$ 139.50
$ 157.50
$ 87.00
Questions:
- Complete Table 1. Summarize your calculations and use Microsoft Excel.
- Using Excel, draw one graph showing average fixed costs, average variable costs, average total costs, marginal revenue, and marginal costs.
- Using the data in the table and on your graph, what is the profit maximizing, or loss minimizing level of output? Explain and justify your answers.
- What is a normal profit? What is an economic profit? Explain your answer using examples. Are normal profits being earned in this example? Are economic profits present for this firm in this example? Explain your answers.
- Given the data in the table and the graph, how could you determine or identify the optimal plant size?
- What is the difference between explicit and implicit cost? Explain your answers.
- How would we determine if a cost is a fixed cost or a variable cost?
Present your analysis in Microsoft Excel format. Enter non-numerical responses in the same worksheet using textboxes. If you want to learn how to use Microsoft Excel to create curves, refer to the Microsoft Excel tutorials.
Submit your documents to the W4: Assignment 2 Dropbox by Tuesday, July 12, 2016.
Assignment 2 Grading Criteria
Maximum Points
Correctly answered all parts of Question 1 and completed Table 1
10
Correctly created a graph showing all required data from Question 2
6
Correctly answered all parts of Question 3, with accurate and complete explanations
6
Correctly answered all parts of Question 4, with accurate and complete explanations
6
Correctly answered all parts of Question 5, with accurate and complete explanations
6
Correctly answered all parts of Question 6 and 7, with accurate and explanations
6
Wrote in a clear and concise manner following APA standards, and demonstrated ethical scholarship in accurate representation of sources
10
Total:
50
The next part is this
Assignment 1: Characteristics of the Various Market Structures
The market structures influence how price and output decisions are made by the firms in their respective structure. In all market structures, one of the primary goals is to maximize profits or minimize losses.
One of the major differences between these market structures is how price and output decisions are made, which in turn depends on the characteristics of each market structure. There are four market structures:
1.Perfect competition
2.Monopolistic competition
3.Oligopoly
4.Monopoly
Tasks:
1.Using Template A, construct a table that describes the various characteristics of each market structure.
2.Identify a firm for each of these market structures and explain why each firm belongs in the market structure identified.
3.Using Microsoft Excel, construct a graph for each of the market structures and explain how price and output decisions are made in each structure and how they differ.
4.How is marginal analysis used in the price and output decisions of firms in the various market structures?
Template A:
Perfect
Competition
Monopolistic
Competition
Oligopoly
Monopoly
Number of Firms
Pricing Decisions
Output Decisions
Profit
Demand Curve
Ease of Entry
Product Differentiation
Deliverables:
1.Prepare a 5-10 page Microsoft Word document that includes the tasks noted above and meets APA standards.
2.Include a summary section in your report that contains 5-7 bullet points identifying your major findings or conclusions of your paper.
These are two separate questions, I just need them to have some sort of research to back your answers, doesn’t have to have several but ya know one or two per question