T-Mobile 6:52 PM 24% 37) Costs change when Pepsi Cola\'s output changes. This ty
ID: 1125585 • Letter: T
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T-Mobile 6:52 PM 24% 37) Costs change when Pepsi Cola's output changes. This type of cost is referred 38) The total cost curve is the sum of the: 39) Ranking the market structure from that to as a with the smallest number of sellers to that with the largest number of sellers, respectively, we have: 40) The market structure characterized by many small firms, each attempting to differentiate its product through non-price methods, is 41) Suppose a monopolist's price is less than average variable cost at the output level where marginal revenue equals marginal cost. The firm will 42) The federal government agency that plays a major role in antitrust enforcement is the:Explanation / Answer
37.) TOTAL VARIABLE COST is the cost which changes as output changes . it includes cost of labor and raw material etc.
38.) TOTAL COST = TOTAL FIXED COST + TOTAL VARIABLE COST
Total fixed cost is the cost which do not vary with the level of output
39.) smallest no. of sellers - rank 1 = MONOPOLY(single seller)
rank 2 = OLIGOPPOLY( few large sellers)
largest no. of sellers - rank 3 = PERFECT COMPETITION ( large no. of buyers and sellers)
40.) MONOPOLISTIC COMPETITION - Monopolistic competition is a middle ground between monopoly, on the one hand, and perfect competition (a purely theoretical state), on the other, and combines elements of each. It is a form of competition that characterizes a number of industries that are familiar to consumers in their day-to-day lives. for example- restaurants, hair salons, clothing and consumer electronics.
It is a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms.
41.) if a monopolist price is less than the average variable cost his decision would be to SHUTDOWN , because, if he operates than he will not only make loss of fixed cost but variable cost as well . on the other hand if he decides to shutdown then although he will still lose fixed cost but he can save his losses from variable cost.
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