help :(

[QazokRouge5]

This goddamned ****ing economics shit doesnt make any ****ing sense and its ****ing pissing me off and i cant think when im ****ing pissed cause im too ****ing pissed to think because this cocksucker professor says the most ridiculously complicated shit then it doesnt ****ing make sense.

Originally Posted by AMOSWEB COCKSUCKING SHITHEAD

1: In the first of the three stages of production the:

A: marginal cost curve has a negative slope.
B: average fixed cost curve has a positive slope.
C: average variable cost curve intersects the average total cost curve.
D: average variable cost is negative.
E: average total cost is negative.

2: The marginal cost curve is most important for determining the price received by a firm operating under:


A: perfect competition.
B: monopolistic competition.
C: monopsony.
D: monopoly.
E: oligopoly.

Help. GD youre my only hope.

[Mushroom]

[QazokRouge5]

Originally Posted by AMOSWEB SHITMONKEY MOTHER ****ER

Unbeknownst to Winston Smythe Kennsington III and most of the employees of OmniConglomerate, Inc., my time spent in the reception area of the CEO's outer office was extremely informative. Winston never quite got around to providing me with any business insight. But I did gain a better understanding of the role opportunity cost plays in production and supply -- both short run and long run -- through my celebrity figurine fabrication enterprise.

Best of all, I now recognize the critical connection between the act of production and the opportunity cost of production. In the short-run, production involves not only fixed and variable inputs, but also fixed and variable cost. The use of fixed inputs results in fixed cost and the use of variable inputs results in variable cost.

Three Production Stages
The connection between short-run production and short-run cost creates an important role for the three stages of production.

Recall that:
Stage I: Total product and marginal product both increase, and marginal product is positive.

Stage II: Total product increases, but marginal product decreases, and marginal product is positive.

Stage III: Total product and marginal product both decrease, and marginal product is negative.
Most important of all, the law of diminishing marginal returns sets in with the start of Stage II.
The Stages for Cost
Because the principles of short-run production are the foundation for short-run cost, these three stages (at least the first two) are also important.

This graph illustrates the production stages for the short-run cost curves. The top panel presents the total variable cost and total cost curves. The bottom panel presents the average variable cost, average total cost, and marginal cost curves.
Stage I: Total cost and total variable cost are both positive, but their slopes are becoming flatter. Marginal cost, being the slope of both curves, is decreasing. Average variable cost and average total cost are also both decreasing.

Stage II: Total cost and total variable cost are both positive, but their slopes are becoming steeper. Marginal cost, as such is increasing. Average variable cost and average total cost both reach their minimum values before increasing. This is, once again, the stage in which the law of diminishing marginal returns operates.

Stage III: Is not relevant to short-run cost.
As discussed in other lessons, firms tend to gravitate toward production quantities placing them in Stage II. They tend to seek production levels in which the law of diminishing marginal returns is effective and in which marginal cost is increasing.



page 2



Increasing marginal cost, which is found in Stage II of production, and which is caused by the law of diminishing marginal returns, takes center stage in the understanding of market supply and the law of supply.

The Law of Supply
Let me review the law of supply:
The law of supply states that a direct relation exists between supply price and the quantity supplied, ceteris paribus.

In other words, suppliers are willing and able to offer a larger quantity for sale ONLY if they receive a higher price. The reason they need a higher price for a larger quantity is that production cost increases. And production cost increases due to increasing marginal cost and the law of diminishing marginal returns.

The connection between the law of diminishing marginal returns, marginal cost, and the law of supply provides an excellent start for the analysis of market supply. However, it is ONLY a start. If all firms in the real world were guided exclusively by their positively-sloped marginal cost curve when making production and supply decisions, our look at market supply would be significantly shorter. But such is not the case.
Market Competition
A second important consideration is competition and market structure. The selling side of markets come in one of four varieties:
Perfect Competition is a market with a large number of relatively small firms in which each firm has no control over the price.

Monopoly is a market with a single firm that has relatively complete control over price.

Monopolistic Competition is a market with a large number of relatively small firms in which each firm has a small amount of control over the price.

Oligopoly is a market with a small number of relatively large firms in which each firm has a large amount of control over the price.
The more control a firm has over the price, the less likely it is to be guided by the marginal cost curve when deciding on the quantity to supply, and the less likely it is to follow the dictates of the law of supply.

This is most important because a significant number of real world firms do have substantial control over the price. The law of supply is thus not a guiding principle in these markets.

Thats what i have to work with.

[Marilyn Manson]

There is nothing quite as wonderful as money.

[lokken]

Oligopoly is a market with a small number of relatively large firms in which each firm has a large amount of control over the price.
The more control a firm has over the price, the less likely it is to be guided by the marginal cost curve when deciding on the quantity to supply, and the less likely it is to follow the dictates of the law of supply.

Surely this answers your question 2 anyway.

Think harder

[QazokRouge5]

Originally Posted by lokken

Surely this answers your question 2 anyway.

When I finally sat down and looked at it and read it 5 times over it started to make more sense, but you kind of confirmed what i was thinking.

Think harder.

Fk off.*


*meant in the most friendliest of ways, ofc

[Dante Hicks]

If you actually just type in the questions into Google you'll get most of what you need.

[NEWSBOT3]

We are sorry, all of our economics dropouts are currently busy. You are currently held in a queue while we wait for one of them to become available. Planetarion forums values your electronic communication.

[QazokRouge5]

I figured you lots needed something to argue about.

[Ste]

where is Stew anyway?

[NEWSBOT3]

Originally Posted by Ste

where is Stew anyway?

aaaah

aaaaaah!

I see what you did there!
By asking as if you DON'T ALREADY KNOW you continue the plot to make us believe you are two seperate people!

aha! caught out!

[QazokRouge5]

lol

[QazokRouge5]

Originally Posted by AmosWeb I liek little bois

1: If OmniMotors Car Company, a well-known oligopoly firm, convinces the federal government to place extremely high tariffs (or taxes) on all foreign automobiles imported into the country, then it is exhibiting the oligopoly characteristic of:

A: collusion.
B: entry barriers.
C: nonprice competition.
D: concentration.
E: merger.


excerpt

Characteristics and Behavior
Consider these particular characteristics and practices of oligopoly firms:
Concentration: In many oligopoly industries 3-10 firms account for 90% or more of total sales.

Entry Barriers: Oligopoly industries have a small number of firms primarily due to entry barriers. Potential firms find it difficult to join existing firms in an industry.

Interdependence: A prime characteristic of oligopoly is interdependent decision making, in which each firm undertakes actions based on the actions of other firms.

Price Rigidity: Oligopoly industries tend to keep prices constant, even if production cost changes.

Nonprice Competition: Faced with price rigidity oligopoly firms are often prone to compete using actions other than prices, including advertising, brand names, support services, and more.

Price Leadership: In many oligopoly markets, when prices do change, one firm takes the lead in setting prices. Other firms then follow along.

Collusion: Oligopoly firms avoid competition through collusion, where they agree to set prices, establish production quotas, and generally work together like a monopoly.

Merger: Oligopoly firms also avoid competition through formal mergers, in which two or more firms in the industry are legally joined into a single firm.

So is the answer B or C?

[Deepflow]

do you want me to do the exam for you too????

huh????

(i dont know)

[QazokRouge5]

no youd fail

[QazokRouge5]

no youd fail

[wu_trax]

get a book about that stuff. more important than to know how those curves look like is to know why they look the way they look.

[lokken]

Read it 5 times again.

This is basic competition theory and shouldn't be a problem for you.

[QazokRouge5]

Originally Posted by lokken

Read it 5 times again.

This is basic competition theory and shouldn't be a problem for you.

No its ****ing confusing horse shit, that's what it is.

[Deepflow]

Originally Posted by QazokRouge5

no youd fail

to be fair to myself, i havent actually read any of it.

If i read economics for more than 10 seconds my ears fall off. I can't be sure of this as it has never been tested, but im pretty sure.

im also pretty sure that if everyone else says its obvious, then it probably is

[JBOY]

1.a
2.b
2nd 1. b

[Ste]

Originally Posted by NEWSBOT3

aaaah

aaaaaah!

I see what you did there!
By asking as if you DON'T ALREADY KNOW you continue the plot to make us believe you are two seperate people!

aha! caught out!

I actually haven't heard from him in ages... he ignored my last text and he didn't reply in the meet thread...

[furball]

Stew Last Activity: 24 Jul 2005 21:44

[Deepflow]

Originally Posted by Ste

I actually haven't heard from him in ages... he ignored my last text and he didn't reply in the meet thread...

hes probably gone gay and is too embarrased to admit that certain people were right.

[furball]

MM's been posting less too...

[QazokRouge5]

Ive given up. not a damn thing this guy says makes sense at all. fk it

[wu_trax]

dont give up. economics is rather simple, once you get over all that scientific babbling people use so that noone notices how simple it al is. as i said, get a good book, read it and thats it.

[Tomkat]

Originally Posted by QazokRouge5

1: If OmniMotors Car Company, a well-known oligopoly firm, convinces the federal government to place extremely high tariffs (or taxes) on all foreign automobiles imported into the country, then it is exhibiting the oligopoly characteristic of:

A: collusion.
B: entry barriers.
C: nonprice competition.
D: concentration.
E: merger.

So is the answer B or C?

Entry Barriers: Oligopoly industries have a small number of firms primarily due to entry barriers. Potential firms find it difficult to join existing firms in an industry.

Why don't you try READING the information you're given? It's quite obviously entry barriers (B).

convinces the federal government to place extremely high tariffs (or taxes) on all foreign automobiles imported into the country.

[JBOY]

Originally Posted by JBOY

1.a
2.b
2nd 1. b

[QazokRouge5]

I've gotten my C, im happy. Economics just isnt for me :/

[Stew]

Originally Posted by Deepflow

hes probably gone gay and is too embarrased to admit that certain people were right.

Sadly wrong.