Economic Questions pls help?

a.What type of demand curve does a perfectly competitive firm face? Why?
b.The state of Maine has a very active lobster industry, which harvests lobsters during the summer months. During the rest of the year, lobsters can be obtained from other parts of the world but at a much higher price. Maine is also full of “lobster shacks,” roadside restaurants serving lobster dishes that are open only during the summer. Explain why it is optional for lobster shacks to operate only during the summer.
c.In a competitive market, how does a firm make profits if it has no control over price?

In each of the following situations, do you think the industry described will be perfectly competitive or not? Explain your answer.
a.There are two producers of aluminum in the world, a good sold in many places.
b.The price of natural gas is determined by global supply and demand. A small share of that global supply is produced by a handful of companies located in the North Sea.
c.Dozens of designers sell high-fashion clothes. Each designer has a distinctive style and a loyal clientele.
d.There are many baseball teams in the United States, one or two in each major city, and each selling tickets to its home-town events.

One Response to “Economic Questions pls help?”

  1. MS Says:

    1b- The state has a higher population during the summer months. It’s peak season for tourists and therefore the food service industry is busier then. Also, it’s more expensive to go out lobstering in the winter because you have to go father offshore (the lobsters go deeper in the winter), therefore you spend significantly more money on gas. Businesses could potentially lose money if they were open year round. The cost of keeping the co-ops open and paying all the employees outweighs the profit they would make from the minimal local business (most coastal Mainer’s wouldn’t but lobster in a restaurant when they could buy it right off the boat). Sorry that’s all I can help with!