How does the demand curve faced by the firm in a purely competitive market differ from...
How does the demand curve faced by the firm in a purely competitive market differ from the demand curve faced by a firm participating in a monopolistically competitive market? How might that impact the price of the product in the the marketplace and the quantity the firm produces?
Homework Answers
Answer : 1) The demand curve for purely competitive firm is horizontal.
Whereas the demand curve for monopolistically competitive firm is downward sloping.
This is the difference between demand curve for purely competitive firm and monopolistically competitive firm.
2) The profit maximizing condition is, marginal revenue = marginal cost. For purely competitive firm, the demand curve = marginal revenue curve. But for monopolistically competitive firm the demand curve lies above the marginal revenue curve. Hence for purely competitive firm the price is lower than the monopolistically competitive firm's price. And quantity of purely competitive firm is higher than the monopolistically competitive firm's quantity level.
Add Answer to:
How does the demand curve faced by the firm in a purely
competitive market differ from...
Explain the difference between the demand curve faced by individual firm in a purely competitive market...
Explain the difference between the demand curve faced by individual firm in a purely competitive market and the demand curve faced by the industry. Use examples if possible
What explains the horizontal demand curve for a Firm in a perfectly competitive market? How does...
What explains the horizontal demand curve for a Firm in a perfectly competitive market? How does this differ from the Market demand curve in a perfectly competitive market? Explain the behavior of marginal revenue in a Market compared to a Firm.
3. How does the demand curve for monopolist firm differ from the demand curves for firms...
3. How does the demand curve for monopolist firm differ from the demand curves for firms in competitive market structures? Show it by graphs.
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping...
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of: O a monopoly firm. O a perfectly competitive firm. an oligopoly firm. a duopoly firm. QUESTION 4 Aside from advertising, how can monopolistically competitive firms increase demand for their products?! government edict. increasing its price. decreasing its price. Increasing the number of locations where it...
The demand curve in a market with a purely competitive industry is while the demand curve...
The demand curve in a market with a purely competitive industry is while the demand curve to a single firm in that industry is Multiple Choice o perfectly elastic downloping O perfectly school o downloping, vertical < Prev 3 of 25 Next >
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.
3. Is monopolistic competition efficient? 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 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 associated with...
Graph a purely competitive market showing the point of equilibrium at a price of $400 and...
Graph a purely competitive market showing the point of equilibrium at a price of $400 and a total product of 10,000. Next to this graph, graph the purely competitive firm. What price will the firm charge for the product? Show the demand, average revenue, and marginal revenue curve on the graph for the firm. Show the profit maximizing quantity for the firm at 500 units of output, or tp. Show this firm suffering a loss of $10000, making sure to...
7. When a new firm enters a monopolistically competitive market, the individual demand curves faced by...
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??
Take a look at the statements below about a purely (or perfectly) competitive market. Indicate whether...
Take a look at the statements below about a purely (or perfectly) competitive market. Indicate whether each statement is true or false by moving the true or false labels to the appropriate boxes. 1. In general, the market demand curve in a purely competitive market is perfectly elastic. False True 2. In general, an individual firm in a purely competitive market faces a perfectly elastic demand curve. 3. An individual firm in a purely competitive market can obtain a higher...
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...
3. How does the demand curve for monopolist firm differ from the demand curves for firms in competitive market structures? Show it by graphs.
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of: O a monopoly firm. O a perfectly competitive firm. an oligopoly firm. a duopoly firm. QUESTION 4 Aside from advertising, how can monopolistically competitive firms increase demand for their products?! government edict. increasing its price. decreasing its price. Increasing the number of locations where it...
The demand curve in a market with a purely competitive industry is while the demand curve to a single firm in that industry is Multiple Choice o perfectly elastic downloping O perfectly school o downloping, vertical < Prev 3 of 25 Next >
Take a look at the statements below about a purely (or perfectly) competitive market. Indicate whether each statement is true or false by moving the true or false labels to the appropriate boxes. 1. In general, the market demand curve in a purely competitive market is perfectly elastic. False True 2. In general, an individual firm in a purely competitive market faces a perfectly elastic demand curve. 3. An individual firm in a purely competitive market can obtain a higher...
Most questions answered within 3 hours.
-
What are the characteristics and behavior of an ethical
manager?
Explain, in your words, what ethics...
asked 17 minutes ago -
1. Which of the following is NOT an argument that McMahan uses
to show that jus...
asked 38 minutes ago -
A crate slides up a frictionless slope. At the end of 3 seconds
its velocity is...
asked 55 minutes ago -
Use the following information to answer the next seven
questions.
Suppose there are three potential states...
asked 51 minutes ago -
If we only have interstitial and substitutional diffusion, then
what do we consider the process of...
asked 1 hour ago -
You look at yourself in a shiny 9.6-cm-diameter Christmas tree
ball.
If your face is 21.0...
asked 1 hour ago -
If we were to measure the relaxation time of a muscle after
undergoing tetanus compared to...
asked 1 hour ago -
4CO(g) + 8H2(g) -----> 3CH4(g) +
CO2(g) + 2H2O(l)
Use the following data as needed to...
asked 1 hour ago -
without using map
1. Write a C++ program to find out the top 10 words in...
asked 1 hour ago -
1)Calculate the percent ionization of a
0.330 M solution of hypochlorous
acid.
% Ionization = %...
asked 1 hour ago -
1a) How many grams of K2SO4 are in 250mL
of 0.11 M K2SO4 solution?
_____ g...
asked 1 hour ago -
The vapor pressure of a solution containing 38.7 g glycerin
(C3H8O3) in 146.2 g ethanol (C2H5OH)...
asked 1 hour ago