If EF is the firm elasticity of demand and EM is the market elasticity of demand,...
Please Help
Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic competitor reveals that, at optimal output, the demand curve lies above the average total cost curve. Which of the following is true? O There is economic profit in the long run. Firms will enter the industry in the long run. O There is not enough information because demand is an imperfect benchmark for measuring profitability O There is an economic loss in the long...
3. Given that the ith firm has a 20% market share, the elasticity of demand for the industry (nt) equals -1, and the elasticity of the supply by other firms (o) equals 4, find the elasticity of demand for the ith firm (7:) using the formula below.
A Cournot oligopoly has four firms in the industry. The market price elasticity of demand is -2.5 and the marginal cost of production is $200. What is the profit maximizing price, rounded to the nearest dollar? O $200 O $500 5354 $222 More information is needed to answer this question
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
10. Firm X is a monopolist that faces market demand with elasticity equal to -2, and Firm X's marginal cost of output is $24/unit. Use the mark-up formula to find Firm X's profit maximizing price. 11. Firm W is a monopolist that faces market demand with elasticity equal to -3, and Firm W's profit maximizing price is $36/unit. Use the mark-up formula to infer Firm W's marginal cost per unit at its current output level.
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
Firm X is a monopolist that faces market demand with elasticity equal to -3, and Firm X's marginal cost of output is S24/u. Use the mark-up formula to find Firm X's profit maximizing price
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...
Firm W is a monopolist that faces market demand with elasticity equal to -2, and Firm W's profit maximizing price is $48/unit. Use the mark-up formula to infer Firm W's marginal cost per unit at its current output level.
As product differentiation decreases, ________ increases. a markup b demand inelasticity c marginal cost d demand elasticity e excess capacity A monopolistically competitive firm is inefficient because the firm a is not maximizing its profit. b earns positive economic profit in the long run. c produces an output where average total cost is not minimum. d produces where price is equal to minimum average total cost. e is producing at an output amount that corresponds to marginal cost equal to...