super challenging econ question

• dontlame

  30 Jul 09, 19:00

  Firms pricing and output decisions depend on the behaviour of competitors.

  aExplain barriers of entry as a key determinant.

  b Discuss behaviour of firms in reality on behaviours of their competitors.

   

  my son ask me this question but i dont noe hw to ans

• Rednano

  30 Jul 09, 19:06

  1) relevance to trade embargo, quota, demand and supply, with its x-y axis graph

  2) relevance to consumer buying behaviour at marketing segmentation behaviour

• dontlame

  30 Jul 09, 20:31

  ...my son learn until oligopoly pc mc and monopoly only

   

  any1 can help pls

• Rednano

  30 Jul 09, 20:56

  then tell ur son dont ask advanced theories questions when he is still learning the basics of macro-economics and micro-economics then...

• charlize

  30 Jul 09, 21:08

  The questions are testing you on the concepts learnt under oligopoly, pc, mc and monpoly what.

   

  How far are you thinking?

   

   

   

   

• Eyelessz

  30 Jul 09, 22:37

  It's a past year A level question if i recall correctly.
  
  As a A level student, here is my take on the question:
  
  a) - Explain Barriers to entry (Talk about insitutional BTEs and Economical BTEs)

        add examples in real world.

  Direction: High BTEs => Mkt power => Ability of firms to restrict Price or output
                  - explain with diagram

                   No/Low BTE=>no mkt power=> price taker

                    - explain with same diagram

   

  of course, points need to be further elaborated