Using a diagram, explain why monopolies make abnormal profits both in the long run and short run
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Using a diagram, explain why monopolies make abnormal profits both in the long run and short run
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry?
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points. b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry?
a. Draw a pair of diagram illustrating both Short-run and Long Run equilibrium of Chamberlinian monopolistic competition. The diagrams contain average cost, average variable cost, marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagrams large and label all curves, axes, and points (10 points). b. In the price-leadership-by-a-dominant-firm model: a. After the dominant firm sets the market price, what is the output-supply behavior of the remaining firms in the industry? (10 points)
Explain why, in a competitive market, firms only generate normal profits in the long run, whereas they can generate super normal profits in the short run?
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? c. Why doesn't the abnormal profit of a monopolist, unlike that of...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? c. Why doesn't the abnormal profit of a monopolist, unlike that of...
In the short run, firms may earn profits or losses, but in the long run profits are _________
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram s hould contain short-run average cost, average variable cost, short-run marginal cost, and marginal rves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. (10 points) b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? (10 points) c. Why doesn't the abnormal profit of a...
In the (short, long) run, monopolistically competitive firms will make (large,zero,or small) economics profits- that is, they will make a (normal, disappointing), rate of return. Pick the answers out of the choices in the parentheses.
. Define and explain the difference between the long run and the short-run production functions. Why are short-run costs higher than costs in the long run? Why are the short-run average and marginal cost curves U shaped? What generates a U shape for the long-run average and marginal cost curves?