Solution:
The equilibrium condition for monopolistic competitive firm is Marginal revenue (MR) = Marginal cost (MC). As the graph shows, the MR and MC are equal at Q = 150 and corresponding price is $4.00.
Also, because ATC curve is above the demand curve i.e. cost is more than price, firms are incurring an economic loss and we would expect firms to exit the burger market. Hence, option D is correct.
The graph shows the demand curve, marginal revenue curve, and cost curves of Bob's Best Burgers,...
I need help on the graph. Price and cost (dollars per burger) The graph shows the demand curve, marginal revenue curve, and cost curves of Bob's Best Burgers, a firm in monopolistic competition. 5.50 Draw an arrow at the profit-maximizing quantity to show the firm's markup. @ 8 ปี Because firms (of which Bob's is one) are_ _ the burger market. _, we would expect firms to O A. making an economic profit, enter O B. incurring an economic loss,...
Please answer all questions The graph shows the demand curve, marginal revenue curve, and marginal cost curve of Stiff Shirt, Inc., a producer of shirts in monopolistic competition Price and cis! İdIn per shit) MC Draw a point at the firm's profit-maximizing price and quantity. Draw a vertical arrow that shows the firm's markup Draw a shape that shows the firm's economic profit. ATC Siff Shirt's markup is Sa shirt Stiff Shirt's excess capacity is Stiff Shirt's economic profit is...
Please indicate the correct answer and why. Graph as instructed with labels. Thank you The graph shows the demand curve, marginal revenue curve, and cost curves of Bob's Best Burgers, a firm in monopolistic competition Draw a point at Bob's profit-maximizing quantity and price. Draw a shape to show the firm's economic profit or economic loss. Label it appropriately. Price and cost (dollars per burger) АТС Bob's ▼| of S 1 a day If economic loss in the dropdown box...
Graph clearly with labels as instructed please. Indicate the right answer Thank you The graph shows the demand curve, marginal revenue curve, and marginal cost curve of Big Splash, Inc., a producer of wading pools in monopolistic competition. Draw a point at the firm's profit-maximizing price and quantity. Draw a vertical arrow that shows the firm's markup. Draw a shape that shows the firm's economic profit. Price and cost (dollars per pool) MC 2804 260 ATC Big Splash's markup is...
Please graph clearly with labels and follow the instruction. Indicate the correct answer and explain why. Thank you! The graph shows the demand curve, marginal revenue curve, and marginal cost curve of Walk Fit, Inc., a producer of hiking boots in monopolistic competition Draw a point at the firm's profit-maximizing price and quantity. Draw a vertical arrow that shows the firm's markup Draw a shape that shows the firm's economic profit Price and cost(dollars per pair) MC ATC Walk Fits...
The graph to the right depicts the average cost curves and the marginal cost curve for a typical firm in a competitive industry. 1.) Using the line drawing fool, draw the firm's demand curve at a market price such that the firm is breaking even. Label your curved, 2.) Using the line drawing tool, draw the firm's demand curve at a market price such that the firm is at its shutdown price. Label your curved, Carefully follow the instructions above,...
3. Is monopolistic competition efficient? Suppose that a firm produces baseball bats in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with...
Please Help Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic competitor reveals that, at optimal output, the demand curve lies above the average total cost curve. Which of the following is true? O There is economic profit in the long run. Firms will enter the industry in the long run. O There is not enough information because demand is an imperfect benchmark for measuring profitability O There is an economic loss in the long...
Question: Draw a graph showing demand curve, marginal-revenue curve, average-total-cost curve, and marginal-cost curve when monopolistic competitor in long run in loss situation.
The figure at right shows the demand curve, marginal revenue curve, and cost curves for a monopolist. 100- To the nearest unit, the profit-maximizing quantity for the 90- units. monopolist is 80- MC To the nearest dollar, the profit-maximizing price for the 70- monopolist is $ 60+ ATC To the nearest dollar, total revenue for the monopolist is $ 50- and total cost is $ 40+ 30- To the nearest dollar, the monopolist's profit is $ 20- D 10- MR:...