We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Assessment - Essay Example

Comments (0)
Summary
Microeconomics Answer 1. Perfect competition is a market structure in which there are infinite firms and infinite number of buyers. Firms are price takers since they have a small market share. In this market, firms enjoy normal profit and price is equal to average revenue…
Download full paper
GRAB THE BEST PAPER
Assessment
Read TextPreview

Extract of sample
Assessment

Download file to see previous pages... No single agent in this economy might be better off without making another agent worse off. This leads to the achievement of allocative efficiency (MC=AR). It is known as “Pareto optimum allocation of resources” (Klein, 2007). Productive efficiency: In the long run, in a perfectly competitive market structure, the output is produced at the lowest level of average total cost. This phenomenon is known as productive efficiency (MC=ATC). The firms that incur high unit cost are inefficient and are not fit to stay in business in the long run. The forces of competition would not allow them to charge high price. Thus, they would be forced to quit industry in the long run. Dynamic efficiency: One important assumption in the competitive market structure is that all producers in the industry produce homogeneous products. Homogeneity of the products ensure that the products are similar in features and attributes and any single firm would not have the facility to make any innovation such that it would make the products of the firm to differentiated from the products of the other firms. This creates dynamic efficiency. No single firm would be able to enjoy competitive advantage over the others or enjoy any degree of monopoly power. Figure 1: Efficiency in perfect competition (Source: Author’s creation) Answer 2. ...
Short Run Equilibrium In the short run, equilibrium is achieved at the point at which marginal revenue equals marginal cost. As long as value of marginal revenue (MR) exceeds value of marginal cost (MC), producer would expand output since profit level rises with rise in output (MR>MC, i.e., difference between MR and MC is positive). When marginal revenue is smaller than marginal cost, the producer would reduce output until the two values equate. Thus, in short run, profit maximizing price and output firm is determined at the position where MR equals MC. In short run, firms might earn super normal profit if average cost is less than average revenue, or conversely, they might incur a loss if the average cost is greater than average revenue. Figure 2: Short run equilibrium under monopolistic competitive market structure (Source: Author’s Creation) Long Run Equilibrium In long run, there are scopes of entry of new firms into the industry. Therefore, supernormal profit is erased in the long run. As new firms enter into the industry, demand faced by each firm decreases and Average revenue (AR) curve shifts leftwards. Consequently, supernormal profit falls. Firms would produce at the level at which marginal revenue equals marginal cost and price is determined by the interaction between average revenue and average cost. All firms earn normal profit in the long run. Some firms that incur loss in the short run would leave the industry in the long run and the remaining firms would earn normal profits. Figure 3: Long run equilibrium under monopolistic competitive market structure (Source: Author’s Creation) In case of monopolistic competition, in the long run, firms operate at the zero profit condition, which ensures that price ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Assessment
Examination An examination is a type of assessment instrument that is used to measure the skills, knowledge, aptitude, or physical fitness of the test taker (Thissen and Wainer, 2001). An exam may be oral, written, or physical. Tests also vary in requirements, rigor and style.
3 Pages(750 words)Essay
Assessment and Assessment Techniques
Formative assessment is one of the methods of evaluation. It is a method of evaluation that is conducted during the learning program. It involves a number of informal and formal procedures of assessment that are used by teachers in the process of learning.
10 Pages(2500 words)Essay
Assessment
The patient had a general size of the head. Another significant normal finding I managed to figure out is that there were no deformities on the head. I also managed to figure out various abnormal findings that include lesions of
2 Pages(500 words)Essay
Assessment
On the other hand, others argue that assessments are monotonous making the teachers develop a notion that the entire concept holds no value. The fact that the administration keeps coercing them to administer numerous tests makes the teachers perform for the sake of the
6 Pages(1500 words)Essay
Assessment
Accountability on the other hand defines an individual’s responsibility over a subject. The role of assessment in determining accountability, in an education set up, is the provision of evidence upon which judgment can be made on accountability level. This is partly
1 Pages(250 words)Essay
Assessment
To determine the level of confidence of score obtained from a test, it is always good practice to evaluate reliability and validity of the test. This entails determining the consistency and ability of the test to quantify what it
2 Pages(500 words)Essay
Assessment
Quizzes may or may not be declared before. The more effective approach is to take surprise quizzes because the main purpose of taking quizzes is to encourage the learners to pay attention toward the lecture for if they do not, they would lose marks in the quizzes
2 Pages(500 words)Essay
Assessment
During lessons planning, the librarian guides on the syllabus resources that would augment teachers’ instructions and crucial information on how to incorporate technology projects in the company plans. Instructional collaboration also involves the
2 Pages(500 words)Essay
Assessment
To date studies cite of 30 to about 30.39 million people having a distribution of approximately 31 per mile square (“World
3 Pages(750 words)Assignment
ASSESSMENT
People need to accept they all can’t be the same and the differences they have are as a result of growing in different backgrounds that are unique in culture and cultural beliefs. The problem arises when a person feels that their culture is the most
4 Pages(1000 words)Essay
Let us find you another Essay on topic Assessment for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us