# 4 discussion post | Economics homework help

### Discussion 6 Topic:

Independent trucking is an industry that can be considered perfectly competitive. Draw a graph showing market supply, market demand, and equilibrium price and quantity. Draw a corresponding graph for the individual firm/trucker using the market equilibrium price and marginal cost curve. If you line up the two graphs horizontally, the equilibrium price should be the same on both graphs.

Now suppose that GDP increases as U.S. manufacturers produce more output. What impact will this have on the independent trucking industry in the short run, in terms of the market price, output of an individual firm, and market equilibrium quantity? Explain your reasoning. What impact will the increase in manufacturing output have in the long run? Show graphically and explain your reasoning.

### Submission Format:

Each student should submit a main post and reply to a minimum two peers with thoughtful responses. Proofread the content of your posts before making them public; proper grammar and sentence structure are expected. Remember that the discussion tool is public – all enrolled students will be able to view posts and responses.

See Rubric for more grading criteria.

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### Discussion 7: Price Discrimination

Available on Sunday, October 6, 2019 11:59 PM EDT until Sunday, November 3, 2019 11:59 PM EST

### Discussion Topic:

Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm).

Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm’s profits? Does price discrimination lead to a more efficient or less efficient outcome? Why or why not?

### Submission Format:

Each student should submit a main post and reply to a minimum two peers with thoughtful responses. Proofread the content of your posts before making them public; proper grammar and sentence structure are expected. Remember that the discussion tool is public – all enrolled students will be able to view posts and responses.

See Rubric for more grading criteria.

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### Discussion 8: Oligopoly

Available on Sunday, October 6, 2019 11:59 PM EDT until Sunday, November 3, 2019 11:59 PM EST

### Discussion Topic:

Name a product that you regularly purchase from a firm that operates in an oligopolistic industry. Explain why the product and firm fit the model of oligopoly. Think about the TV commercials and/or print advertisements that you’ve seen from this industry: What interdependence have you noticed between the firm you selected and its rivals in terms of product differentiation, price leadership, or price competition? Explain your answer.

### Submission Format:

Each student should submit a main post and reply to a minimum two peers with thoughtful responses. Proofread the content of your posts before making them public; proper grammar and sentence structure are expected. Remember that the discussion tool is public – all enrolled students will be able to view posts and responses.

See Rubric for more grading criteria.

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### Discussion 9: Monopolistic Competition

Available on Sunday, October 6, 2019 11:59 PM EDT until Sunday, November 3, 2019 11:59 PM EST

### Discussion Topic:

Suppose you manage a local grocery store, and you learn that a very popular national grocery chain is about to open a store just a few miles away. Use the model of monopolistic competition to analyze the impact of this new store on the quantity of output your store should produce (Q) and the price your store should charge (P). What will happen to your profits? Please show graphically and explain your reasoning in detail. For example, how and why do profits change? How can that be seen on the graph?

What could you do to defend your market share against the new store?

### Submission Format:

Each student should submit a main post and reply to a minimum two peers with thoughtful responses. Proofread the content of your posts before making them public; proper grammar and sentence structure are expected. Remember that the discussion tool is public – all enrolled students will be able to view posts and responses.

See Rubric for more grading criteria.

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