Homework Answers
In the long run the monopolistic firm would be producing up to that unit where demand is equal to LRAC.
From the above graph we can see the LRAC intersects the demand curve at the point where Q = 400 units.
Long run price = $ 30.
Hence, in the long run the firm would charge $ 30.
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Question 73 3.75 pts Exhibit 10-3 A monopolistic competitive firm in the long run MC 40...
Exhibit 10-3 A monopolistic competitive firm in the long run LRAC Price, costs, and revenue (dollars)...
Exhibit 10-3 A monopolistic competitive firm in the long run LRAC Price, costs, and revenue (dollars) 0 200 400 600 800 1,000 Quantity of output (units per week) As presented in Exhibit 10-3, the long-run profit- maximizing output for the monopolistic competitive firm is: zero units per week. 200 units per week. 400 units per week. 600 units per week. 800 units per week
Quest Exhibit 10-2 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 100 200 300...
Quest Exhibit 10-2 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 100 200 300 400 500 Quantity of output (units per week) Comparing the monopolistically competitive firm in Exhibit 10-2 to the long-run profit-maximizing outcome for a perfectly comp form with a price of $15 per unit and a quantity of 600, a. the profit earned by the monopolistically competitive firm is higher than that of the perfectly competitive firm the marginal revenue of the monopolistically competitive firm...
Exhibit 10-1 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 0 200 1,000 400...
Exhibit 10-1 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 0 200 1,000 400 600 800 Quantity of output (units per day) If all firms in the industry are the same as the monopolistic competitive firm shown in this Exhibit 10-1, firms in the long run will: a. leave the industry, b. experience less competition because firms will exit the industry c experience competition from new firms that enter the industry, d. earn positive economic profits.
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average...
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopolistically competitive firm are shown in the figure below. Price/Cost (S) a. What is the firm's profit-maximizing output level? b. What is its profit-maximizing price? c. What is the firm's economic profit? d. What would the output level be that is productively efficient (minimizes ATC)? e. At what price and output level would this outcome be allocatively efficient? (Hint...
4. Is monopolistic competition efficient? Suppose that a firm produces polo shirts in a monopolistically competitive...
4. Is monopolistic competition efficient? Suppose that a firm produces polo shirts 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...
4. Is monopolistic competition efficient? Suppose that a firm produces wool jackets in a monopolistically competitive...
4. Is monopolistic competition efficient? Suppose that a firm produces wool jackets 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...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not likely earn an economic profit in the long run. shut down in the short run if price is less than average variable cost. all of the above. QUESTION 6 A monopolistic competitive firm is inefficient because the firm: earns positive economic profit in the long run. is producing at an output corresponding to the condition that marginal cost equals price. is not maximizing its...
ID: T because the long-run economic 38. Monopolistic competition is simlar to because the way the...
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...
Exhibit 5, Long run Average Cost SRATCAİ SRATCgSRATCc 50 40 unit 30 LRAC Costs per (dollars)...
Exhibit 5, Long run Average Cost SRATCAİ SRATCgSRATCc 50 40 unit 30 LRAC Costs per (dollars) 20 10 0 500 1.000 1.500 2.000 Quantity of output units per week) 24- In Exhibit 5, diseconomies of scale are shown in the range of 0 to 500 units per week b. 500 to 1,000 units per week c. 1,000 to 2,000 units per week d. zero per week. Exhibit 6 Demand curve for concert tickets Price per 30 ticket (dollars) 20 10...
1. Is monopolistic competition efficient? Suppose that a firm produces wooden train engines in a monopolistically...
1. Is monopolistic competition efficient? Suppose that a firm produces wooden train engines 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 quan tity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and...
Exhibit 10-3 A monopolistic competitive firm in the long run LRAC Price, costs, and revenue (dollars) 0 200 400 600 800 1,000 Quantity of output (units per week) As presented in Exhibit 10-3, the long-run profit- maximizing output for the monopolistic competitive firm is: zero units per week. 200 units per week. 400 units per week. 600 units per week. 800 units per week
Quest Exhibit 10-2 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 100 200 300 400 500 Quantity of output (units per week) Comparing the monopolistically competitive firm in Exhibit 10-2 to the long-run profit-maximizing outcome for a perfectly comp form with a price of $15 per unit and a quantity of 600, a. the profit earned by the monopolistically competitive firm is higher than that of the perfectly competitive firm the marginal revenue of the monopolistically competitive firm...
Exhibit 10-1 A monopolistic competitive firm Price, costs, and revenue (dollars) 10 0 200 1,000 400 600 800 Quantity of output (units per day) If all firms in the industry are the same as the monopolistic competitive firm shown in this Exhibit 10-1, firms in the long run will: a. leave the industry, b. experience less competition because firms will exit the industry c experience competition from new firms that enter the industry, d. earn positive economic profits.
3) Monopolistic Competition Long-Run (7 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopolistically competitive firm are shown in the figure below. Price/Cost (S) a. What is the firm's profit-maximizing output level? b. What is its profit-maximizing price? c. What is the firm's economic profit? d. What would the output level be that is productively efficient (minimizes ATC)? e. At what price and output level would this outcome be allocatively efficient? (Hint...
4. Is monopolistic competition efficient? Suppose that a firm produces polo shirts 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...
4. Is monopolistic competition efficient? Suppose that a firm produces wool jackets 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...
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...
Exhibit 5, Long run Average Cost SRATCAİ SRATCgSRATCc 50 40 unit 30 LRAC Costs per (dollars) 20 10 0 500 1.000 1.500 2.000 Quantity of output units per week) 24- In Exhibit 5, diseconomies of scale are shown in the range of 0 to 500 units per week b. 500 to 1,000 units per week c. 1,000 to 2,000 units per week d. zero per week. Exhibit 6 Demand curve for concert tickets Price per 30 ticket (dollars) 20 10...
1. Is monopolistic competition efficient? Suppose that a firm produces wooden train engines 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 quan tity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and...
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