Table 16-7 A monopolistically competitive firm faces the following demand schedule for its product. In addition,...
A monopolistically competitive firm faces the following demand curve for its product: 6 Price ($) Quantity 10 2 9 4 8 6 7 8 5 12 4 14 3 16 2 18 1 20 10 Refer to the Table. The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit. What will the firm do? a) It will produce 2 units; firms will exit the market in the long run. b) It will produce...
A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20. Price (dollars) Quantity 30 1 26 2 22 3 18.95 4 14 5 10 6 6 7 If the firm has a constant marginal cost of $7 per unit, what is the level of output that maximizes profits?
A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20. Price (dollars) Quantity 30 1 26 2 22 3 21.4 4 14 5 10 6 6 7 If the firm has a constant marginal cost of $7 per unit, what profits will the firm earn at the profit-maximizing level of output?
A monopolistically competitive firm faces the following demand curve for its product: 6 Price ($) Quantity 10 2 9 4 8 6 7 8 5 12 4 14 3 16 2 18 1 20 10 Refer to the Table. The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit. What will the firm do? a) It will produce 2 units; firms will exit the market in the long run. b) It will produce...
These three questions please Question 37 (1 point) Table 16-1 A monopolistically competitive firm faces the following demand curve for its product: Price (S) 10 4 8 7 6 16 8 10 5 12 4 14 3 16 2 18 20 1 Refer to Table 16-1. The firm has total fixed costs of $20 and a constant marginal cost of $5 per unit. What will the firm do? It will produce 2 units; firms will exit the market in the...
A monopolistic competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20. Price (dollars) Quantity 30 1 26 2 22 3 19.58 4 14 5 10 6 6 7 If the firm has a constant marginal cost of $7 per unit, what total variable cost will the firm incur at the profit-maximizing level of output?
please answer all questions! In the short run, a firm in a monopolistically competitive market operates much like what type of firm? U a perfectly competitive firm an oligopoly firm O a monopoly O a duopoly When we compare diagrams for firms in different market structures, what do we notice? For competitive firms and monopolistically competitive firms, the revenue curves are similar but the cost curves are quite different. For competitive firms and monopolistically competitive firms, the cost curves are...
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 block 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 that cost.Because this market...
7. When a new firm enters a monopolistically competitive market, the individual demand curves faced by all existing firms in that market will a. shift to the left. b. shift to the right. c. shift in a direction that is unpredictable without further information. d. remain unchanged. It is the supply curve that will shift. why not D??
a) Why is a monopolistically competitive firm less efficient than a perfectly competitive firm? It produces at an output that is lower than its minimum efficient scale (MES) It earns positive economic profits in the long run It deters entry of new firms by putting up entry barriers All of the answers are correct b) Suppose a monopolistically competitive firm has MC=4Q+5. Its demand is P=145-3Q and marginal revenue is MR=145-6Q. What is its profit-maximizing output level? 17 14 16...