Homework Answers
The given statement is false. Because firms in monopolistically competitive market earns normal profit in the long run. The Firms earn above normal profit only in the short run. Price is always greater than marginal cost.
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True False-Ambiguous and Explain why 2. Carino's, Axe Company operates in a monopolistically competitive market and,...
True False-Ambiguous and Explain why 6. Suppose that a single-price monopolist bought up all the firms...
True False-Ambiguous and Explain why 6. Suppose that a single-price monopolist bought up all the firms in a competitive industry and was able to block new firms from entering. In this case, consumer surplus would fall, a deadweight loss would arise, and the firm would earn positive economic profits. Draw a graph.
Please answer my questions: True or False and Explain 5)In a perfectly competitive market, if price...
Please answer my questions: True or False and Explain 5)In a perfectly competitive market, if price is above minimum average variable cost, then firms will enter until price is equal to minimum average variable cost. 6)A firm in a competitive industry is assumed to set their price to cover costs and a normal profit. 8)In a competitive market, a firm is said to shutdown when it is unable to pay its existing debts. 9)A monopolist can never earn excess profits...
please answer all questions! In the short run, a firm in a monopolistically competitive market operates...
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...
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph...
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.Given the profit-maximizing choice of output and price, the...
True-False-Ambiguous and Explain why 7. The equilibrium price of coal is $50 per ton. Coal generates...
True-False-Ambiguous and Explain why 7. The equilibrium price of coal is $50 per ton. Coal generates a negative externality of $20 per ton, but then the negative externality increases to $40 per ton. Therefore, consumer surplus will increase and the deadweight loss will grow. Draw a graph.
1. Which of the following is NOT a characteristic of a monopolistically competitive market?
1. Which of the following is NOT a characteristic of a monopolistically competitive market?A. many sellers.B. differentiated products.C. long-run economic profits.D. free entry and exit.2. Which of the following products is likely to be sold in a monopolistically competitive market?A. video games.B. breakfast cereal.E. beer.D. all of the above.3. Which of the following is true regarding the similarities and differences in monopolistic competition and monopoly?A. The monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be su...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
Explain briefly why you think the following statement is true, false, or ambiguous. Competitive currencies would...
Explain briefly why you think the following statement is true, false, or ambiguous. Competitive currencies would work automatically to provide consumers with protection against inflation.
True-False-Ambiguous and Explain Why 5. Biggie Inc. is a single-price monopoly. If the cost of its...
True-False-Ambiguous and Explain Why 5. Biggie Inc. is a single-price monopoly. If the cost of its raw materials rises by $2 for each unit produced, then it will increase it price by $2 per unit. Draw a graph.
True or False: and can you tell me why. In a competitive market where the price...
True or False: and can you tell me why. In a competitive market where the price is below the average variable cost, new firms enter the industry in the long run and increase the equilibrium supply
True False-Ambiguous and Explain why 6. Suppose that a single-price monopolist bought up all the firms in a competitive industry and was able to block new firms from entering. In this case, consumer surplus would fall, a deadweight loss would arise, and the firm would earn positive economic profits. Draw a graph.
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...
True-False-Ambiguous and Explain why 7. The equilibrium price of coal is $50 per ton. Coal generates a negative externality of $20 per ton, but then the negative externality increases to $40 per ton. Therefore, consumer surplus will increase and the deadweight loss will grow. Draw a graph.
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
True-False-Ambiguous and Explain Why 5. Biggie Inc. is a single-price monopoly. If the cost of its raw materials rises by $2 for each unit produced, then it will increase it price by $2 per unit. Draw a graph.
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