Expert answer:Perfect Competition in the Smart Phone Apps

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Homework # 8. Due 11/13/2017
Submit your answers on a one page, printed document, submitted in class by you.
Format: Single space, twelve point font, one inch margins.
Your full name and UB person id should be on the top of the page.
Use the entire page.
No handwritten homework’s.
Late homework’s shall not be accepted.
Assignment:
Page 290 & 290 of Parkin’s 12th Edition of Microeconomics discusses perfect
competition in iPhone app market.
Discuss:
1) Explain how the iPhone app market can be explained by the perfectly
competitive model?
2) Explain how marginal cost, marginal revenue and average total cost
influence developer decisions.
3) What happens to economic profit when the market for apps reaches
equilibrium?
Make sure that you:
1) Introduce your topic.
2) Answer the questions.
3) Conclude and summarize your thought(s) on the subject.
…
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