Say you own a monopolistic firm such as a fast food joint. In the long run your firm will be making
a. Profit
b. Loss
c. Zero economic profit
d. Both a and c
Say you own a monopolistic firm such as a fast food joint. In the long run...
Say you own a monopolistic firm such as a fast food joint. In the short run your firm can make a. Profit b loss c zero economic profit d. All of the above
26. Say you own a monopolistic firm such as a fast food joint (for questions 25 to 27). In the short run your firm can make a. Profit b. Loss c. Zero economic profit d. All of the above 27. You realize that your firm is making a loss if a. Price is greater than the average total cost b. Price is less than the average total cost c. Price is equal to the average total cost Both a and...
You own a monopolistic fir such as a fast food joint. You realize your firm is making a loss if A. Price is greater than than the average total cost. b. Price is less than the average total cost. c. Price is equal to the average total cost. d. Both a and b
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic profits. negative economic profits. Positive, zero, or negative economic profits. QUESTION 8 Which of the following statements best describes firms under monopolistic competition? Profits will be positive in the long run. Price always equals average variable cost. In the long run, positive economic profit will be eliminated. Marginal revenue equals minimum average total cost in the short run. QUESTION 9 Which of the following...
The major difference between monopolistic competition and monopoly is A. only a firm in monopolistic competition can earn an economic profit in the short run. B. only firms in monopolistic competition are protected by barriers to entryC. only a monopoly can earn an economic profit in the long run. D. how the quantity of output is determined. E. monopoly is a price setter and a firm in monopolistic competition is a price taker.In the long run, firms in monopolistic competition earn zero economic profit...
ID: T because the long-run economic 38. Monopolistic competition is simlar to because the way the firm maximizes its profit. proft i s zero; similar to b. monopoly perfect competition Exhibit 10-5 Price MC ATC 39. To maximize profit in the short run, the monopolistic competitive firm in Exhibit 10-5 should a. produce 8 units b. shut down c. produce 10 units d. exit 40. To maximize profit in the short run, the monopolistic competitive firm in Exhibit 10-5 should...
In the long run, the monopolistic competitive firm produces where P=LRATC, and earns zero economic profit. Suppose P = $5, and the monopolistic competitive firm is producing 100 units per day. What is total cost?
Now that you have studied monopolistic competition, let's see how well you can distinguish a firm in a monopolistically competitive market from a firm in a perfectly competitive market. Given the description of the firm below, decide whether it applies to monopolistic competition, perfect competition, or both. You may have to adjust the scroll bar to see the complete list.Items (9 items) (Drag and drop into the appropriate area below)a firm that may earn an economic profit or loss in the short...
Show and explain why profits go to zero in the long run under monopolistic competition. Hint: Start with a firm making profit and then explain what happens next. Explain why economists consider monopolistic competition inefficient. What are the benefits of allowing this inefficiency? Show and explain why profits go to zero in the long run under monopolistic competition. Hint: Start with a firm making profit and then explain what happens next. Explain why economists consider monopolistic competition inefficient. What are...
Draw and label a graph depicting a monopolistic market from perspective of a single firm. Make sure you illustrate the profit maximizing price and quantity. a. Start with a graph depicting market equilibrium for the monopolistic market b. Modify the graph to demonstrate that the price at the profit maximizing level of output is above the average variable cost curve,but below the average cost curve c. Is the firm making a profit or loss? d. Will the firm decide to...