1. Many market breakdowns result in either the demand or supply curve being inco
ID: 1253912 • Letter: 1
Question
1. Many market breakdowns result in either the demand or supply curve being incorrectly placed for the purpose of achieving socially optimal outcomes. For each of the following breakdowns, identify if the demand or the supply curve is misplaced and whether it is too far to the left or too far to the right.A. External Cost
B. External benefit
C.Public Good
D.A product is viewed as more valuable than it really is.
E. Some people have very low income
F. A low level of competition
2. The following firms are all the firms in the industry, listed in order of sales. Find the concentration ratio and decide whether the industry is monopolistic competition or not.
Firm A 6,700
Firm B 6,700
Firm C 6,600
Firm D 6,600
Firm E 6,500
Firm F 6,400
Firm G 6,200
Firm H 6,100
Firm I 6,000
Firm J 5,000
Firm K 4,000
Firm L 3,200
Explanation / Answer
A. External Cost RIGHT B. External benefit NO MOVEMENT C.Public Good RIGHT D.A product is viewed as more valuable than it really is. LEFT E. Some people have very low income LEFT F. A low level of competition RIGHT
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.