Economics in Micro-Macro Continuum Mechanics
Added on 2020-06-06
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MICRO-ECONOMICS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1..................................................................................................................................1(a) What market structure is used to benchmark allocative efficiency and why do we use it?...1(b) Why and how do monopolistically competitive firms fail to achieve allocative efficiency?2QUESTION 2..................................................................................................................................3(a) What is the impact of collusion into Oligopoly markets on allocation of factors ofproduction?..................................................................................................................................3(b) What is the consequence of any one firm cheating on the other one?...................................3QUESTION 3..................................................................................................................................4(a) How would monopoly into market can maintain an inefficient allocation of resources?......4(b) Advantages of monopoly and disadvantages.........................................................................5QUESTION 4..................................................................................................................................5(a) Explain how a firm's marginal costs of production are at a minimum when its marginalproduct is at a maximum?............................................................................................................5(b) Explain how a firm's long-run average cost curve comes into existence from a multi-plantoperation?....................................................................................................................................7Like in this figure is the firm at the starting stage is opening few plants then firm would beexperiencing ATC would be declining as it increase number of plants then ATC would beconstant and if it is increased to more higher number then this would be indicating as rise inATC curve...................................................................................................................................8(c) Explaining the diagram..........................................................................................................8QUESTION 5..................................................................................................................................9Explaining the market mechanisms used for controlling pollution as an externality?................9REFERNCES.................................................................................................................................10
TABLE OF FIGURESFigure 1: Allocative efficiency of Monopolistic.............................................................................2Figure 2: Allocative efficiency of Monopolistic competitive firm..................................................3Figure 3: Cheating by one collusion................................................................................................4Figure 4: Inefficency allocation of Monopoly.................................................................................5Figure 5: Marginal cost and Marginal Product curve......................................................................6Figure 6: Long run ATC curves.......................................................................................................7Figure 7: Long run ATC curves.......................................................................................................8Figure 8: Market mechanisms.........................................................................................................9
INTRODUCTIONUnder this particular report micro economics need to be studied which is that part ofeconomics which help to seek influence of single factor and then its effect on individual decisionmaking. There would be analysis of market structure like that of oligopoly and what are thereasons as to why monopolistic firm would also be included within this.1
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