A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm...
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?
Homework Answers
The profit-maximizing quantity is 4. The profit at this quantity is $37.6. The calculations are provided in the images attached.
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A monopolistically competitive firm faces the following demand
schedule for its product. In addition, the firm...
A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm...
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 monopolistic competitive firm faces the following demand schedule for its product. In addition, the firm...
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?
Table 16-7 A monopolistically competitive firm faces the following demand schedule for its product. In addition,...
Table 16-7 A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to $10. Price $15 $13 $11 $9 $7 $5 $3 Quantity 2 4 7 Refer to Table 16-7. If the firm has a constant marginal cost of $5 per unit, which of the following would you expect to occur in the long run in this market? O New firms will enter the market and profhts for firms...
A monopolistically competitive firm faces the following demand curve for its product: 6 Price ($) Quantity...
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 $5 per unit. What will the firm do? a) It will
produce 2 units; firms will exit the market in the long run. b) It
will produce...
A monopolistically competitive firm has the following demand and total cost curves: Demand: P= 9 -0.25Q...
A monopolistically competitive firm has the following demand and total cost curves: Demand: P= 9 -0.25Q TC= 124 -16Q + Q2 a. Find the price and quantity that maximizes profits for the monopolistically competitive firm b. How much profits does the monopolistically competitive firm make at the profit-maximizing level of quantity? c. Explain the following: What adjustments do you expect to happen in the market in the long-run? What will happen to the demand curve of the firm (will it...
You are the manager of a monopolistically competitive firm. The inverse demand for your product is...
You are the manager of a monopolistically competitive firm. The inverse demand for your product is given by P = 200 - 10Q and your marginal cost is MC = 5 + Q. a. What is the profit-maximizing level of output? b. What is the profit-maximizing price? c. What are the maximum profits?
A monopolistically competitive firm faces the following demand curve for its product: 6 Price ($) Quantity...
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) Why is a monopolistically competitive firm less efficient than a perfectly competitive firm? It produces...
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...
Which of the following statements is true of a monopolistically competitive firm? a. It produces more...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
These three questions please Question 37 (1 point) Table 16-1 A monopolistically competitive firm faces the...
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...
Table 16-7 A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to $10. Price $15 $13 $11 $9 $7 $5 $3 Quantity 2 4 7 Refer to Table 16-7. If the firm has a constant marginal cost of $5 per unit, which of the following would you expect to occur in the long run in this market? O New firms will enter the market and profhts for firms...
A monopolistically competitive
firm faces the following demand curve for its product: 6 Price ($)
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 $5 per unit. What will the firm do? a) It will
produce 2 units; firms will exit the market in the long run. b) It
will produce...
A monopolistically competitive firm faces the following demand curve for its product: 6 Price ($) 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...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
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...
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