经济学1作业outcome1VIP

1.0 Introductionthis report is mainly about the explanation of a minimum of three costs to the Sony firm，the description of the character istics，Price and out2.0成本2.1 Total Costfixed costs(fc): costs do not vary with the level of output . variable costs(VC): costs do vary with the level of output . toot(TC=tfc TVC)it shows the relationship between total cost of goods and the quantity of output produced。VC曲线TC曲线Fc曲线Quantity of OutputCost0because fixed costs do not vary with outputs and it is always a constant quantity，Fc curve is a horizontal line . variable costs do vary with outputputsditto，because total cost is The sum of fc and VC，Tc curve is also an upward slopping curve . it parallels to The VC curve . when Sony new productsadditional works add less to productions，Refleting diminishing marginal products，so the production function gets flatter。when Sony is crowded，Producing extra goods cost a lot of extra labors . so when the quantity is large，TC curve gets stepper。(sqa，2013，page15-16)2.2 Average Costaverage fixed cost(AFC)is the cost of each fixed typical and average variable cost(AVC)is the cost of each variable typical . averesAFC0AVC交流MCqcthe law of dimining returns 3360 when a production unit expands，Because of the division of labor and special ization output will increase。with increases in output the ability to produce more is limited by the size Of the firm .more And more labors are hired at a firm，And they share the same equipment And work in more crowed conditions . all theses are lower labor productivity(sqa，2013)ATC curve is u shaped . at very low levels of output ATC is high . ATC declines as output increases。the bottom of the u-shaped ATC curve exists when a Tc is minimized。the quantity that minimizes ATC is called the efficient scale of the firm。when output is small，Atc is very high because fc spreads over a small number of units。with outputs increase AFC falls rapidly and AVC also falls because of the division o F labor and special ization。Sony may be able to purchase more materials at lower cost because they can order large quantities as the production is enla Rged .because of the law of diminishing returns AVC will increase rapidle and be the key factor that makes ATC rises rapidly .2.3 Marginal Costmarginal cost(MC)measures the total cost that arises from an extra unit of production。交流曲线MC曲线Quantity of OutputCost0Firstly，Because of the division of labor and specialization with the increases of variable factors the efficiency of production will arise . MCand then according the law of diminishing returns，As continually increasing the input of variable factors the production is inefficient . so afficientthat means Sony wil L cost more to produced extra units . whenever MC is less than ATC，ATC is fallingWhen greater than ATC，ATC is arising。the MC curve crosses the ATC curve at the efficient scale。3.0 Oligopoly3.1 Definitionan oligopoly is a market dominated by a few large suppliers。(tutor 2u，2013)3.2 Characteristicsthere is high degree of industrial concentration in an oligo poly。there are many barriers to entry exist。an oligopoly can earn super normal profits and prices are unlimited to change very often。oligo polies used considerable non-price competition。(sqa，2013)3.3 Price and output behavioropqP1Q1ddg弹性杆Inelastica result of oligopoly may therefore be that a business may appear to face a kink in the demand curve for its product . price is op1 and output is oq1 . a ccordsthere no Price war in an oligopoly because firms fear that if they reduce prices their market share will remain much the same as before。firms are more likey To compete with non-price competition、such as advertising、loyalty scheme、free gifts、sales、branding(sqa，2013)if Sony wants to earn more market shales，it should improve its non-price competitive ness。4.0单色涤纶4.1 Definitionamoonopholyexists when a specific person or enterprise is the only supplier of a particular commodity。(Milton Friedman，2002)4.2 Characteristicsthere is only a supplier in a monopoly。Firm is the price Maker。There are high barriers to entry。it is often subjected by government regulations。4.3 Price and output behavioroqP1MRQ1MCdd交流P (AC)pin any form of competition other than perfect competition，the demand curve shapes downwards . because the firm is the one seller，It is the