Homework Answers
In the long run what happens is it a monopolistically competitive firm earns normal profit or zero economic profit free movement of firms in and out and it will not suffer a loss due to advertising in the long run which might be the case in the short run and still it would produce equal to that than that of perfectly competitive market to earn normal profit and that's why
(b,c,d) are wrong
Because when you earn normal profit the price is equal to the average total cost as a result of which you can understand that
(a) is the answer to this question
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In the long run, a monopolistically competitive firm will O Produce where price equals average cost....
In the long run, a monopolistically competitive firm will not produce at the output level that...
In the long run, a monopolistically competitive firm will not produce at the output level that minimizes average cost because: Group of answer choices demand is horizontal. that would leave the firm with excess capacity. Price is greater than MR at that output level. MC is less than MR at that output level. MC is greater than MR at that output level.
In the long run, all of the firms in a perfectly competitive industry will: produce an...
In the long run, all of the firms in a perfectly competitive industry will: produce an output level at which price is greater than average total cost. earn an economic profit greater than zero. produce at an output level at which average total cost equals marginal cost. exit the industry if price is greater than average total cost.
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
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...
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...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not likely earn an economic profit in the long run. shut down in the short run if price is less than average variable cost. all of the above. QUESTION 6 A monopolistic competitive firm is inefficient because the firm: earns positive economic profit in the long run. is producing at an output corresponding to the condition that marginal cost equals price. is not maximizing its...
The monopolist chooses to produce: O at an inefficient outcome. where marginal cost equals marginal revenue....
The monopolist chooses to produce: O at an inefficient outcome. where marginal cost equals marginal revenue. at a lower quantity than the perfectly competitive firm. O All of these statements are true. In the short run, monopolistically competitive firms: will earn zero economic profits by acting like a monopolist. O can earn positive economic profits by acting like a perfectly competitive firm. will earn zero economic profits by acting like a perfectly competitive firm. can earn positive economic profits by...
In the long run, all of the firms in a perfectly competitive industry will: exit the...
In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...
QUESTION 6 In the short run, a monopolistically competitive firm. O makes profits just as it...
QUESTION 6 In the short run, a monopolistically competitive firm. O makes profits just as it does in the long run because of barriers to entry O will earn zero economic because of free entry and exit. O produces where MR-MC O produces where PEMC QUESTION 7 In the long run, a monopolistically competitive firm: O makes profits just as it does in the short run because of barriers to entry will earn zero economic because of free entry and...
A firm in a monopolistically competitive market makes no economic profit in the long run because...
A firm in a monopolistically competitive market makes no economic profit in the long run because a. long-run price will be equal to long run average cost. b. long-run price will be equal to long run marginal cost. c. long-run marginal cost will be equal to long run marginal revenue. d. long-run marginal cost will be too high to make any economic profit.
a monopolistically competitive firm maximizes profit in the short run by producing where price is a...
a monopolistically competitive firm maximizes profit in the short run by producing where price is a greater than marginal cost b less than marginal revenue c less than average revenue d less than marginal cost
In the long run, all of the firms in a perfectly competitive industry will: produce an output level at which price is greater than average total cost. earn an economic profit greater than zero. produce at an output level at which average total cost equals marginal cost. exit the industry if price is greater than average total cost.
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
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...
The monopolist chooses to produce: O at an inefficient outcome. where marginal cost equals marginal revenue. at a lower quantity than the perfectly competitive firm. O All of these statements are true. In the short run, monopolistically competitive firms: will earn zero economic profits by acting like a monopolist. O can earn positive economic profits by acting like a perfectly competitive firm. will earn zero economic profits by acting like a perfectly competitive firm. can earn positive economic profits by...
In the long run, all of the firms in a perfectly competitive industry will: exit the industry if price is greater than average total cost. produce at an output level at which average total cost equals marginal cost. earn an economic profit greater than zero. O produce an output level at which price is greater than average total cost. Which statement about the differences between monopoly and perfect competition is INCORRECT? A monopoly will charge a higher price and produce...
QUESTION 6 In the short run, a monopolistically competitive firm. O makes profits just as it does in the long run because of barriers to entry O will earn zero economic because of free entry and exit. O produces where MR-MC O produces where PEMC QUESTION 7 In the long run, a monopolistically competitive firm: O makes profits just as it does in the short run because of barriers to entry will earn zero economic because of free entry and...
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