You the newly appointed manager of a profit maximizing monopolistically competitive firm. You decided to ensure...
You the newly appointed manager of a profit maximizing monopolistically competitive firm. You decided to ensure that the firm is actually charging the profit maximizing price for its product and is producing the profit maximizing quantity. Your marketing group estimates that the demand curve faced by your firm is expressed as: P = 900 – 2Q and its total costs is expressed as: C(Q) = 2Q + Q2 a. What price would you charge? And what level of output would you produce to maximize profit? b. How much profit will you be able to earn? c. Is this likely to be a long-run equilibrium for the company? Why or why not? If not, what is likely to happen in the market, and how will it affect your firm?
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You the newly appointed manager of a profit maximizing
monopolistically competitive firm. You decided to ensure...
If a monopolistically competitive firm is producing the profit-maximizing level of output and is earning an...
If a monopolistically competitive firm is producing the profit-maximizing level of output and is earning an economic profit in the short run: Select one: a. marginal revenue is less than marginal cost. b. price is less than average total costs. c. price is less than marginal cost. d. marginal revenue equals marginal cost.
You are the manager of a monopolistically competitive firm. Your demand and total costs are represented...
You are the manager of a monopolistically competitive firm. Your demand and total costs are represented by Demand Q = 36 – 4P Total cost = 4 + 4Q + Q2. 2a What is the expression for marginal revenue? 2b What is the expression for marginal cost? 2c To maximize profit what output level should it make? 2d To maximize profit at what price should it sell? 2e What is the maximum value of profit?
On the graph below depict the profit maximizing price and quantity for the MONOPOLISTICALLY COMPETITIVE firm...
On the graph below depict the profit maximizing price and quantity for the MONOPOLISTICALLY COMPETITIVE firm such that others are motivated to enter the industry. In your graph, you should include the following curves: D,AR,MR,ATC,S and MC.
You are the manager of a monopolistically competitive firm. The inverse demand for your product is...
You are the manager of a monopolistically competitive firm. The inverse demand for your product is given by P = 200 - 10Q and your marginal cost is MC = 5 + Q. a. What is the profit-maximizing level of output? b. What is the profit-maximizing price? c. What are the maximum profits?
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...
An increase in marginal cost causes a profit-maximizing, monopolistically competitive firm to raise price and...
An increase in marginal cost causes a profit-maximizing, monopolistically competitive firm to raise price and raise output. lower price and lower output. keep price and output the same. raise price and decrease output. lower price and increase output.
what is the profit-maximizing output condition that a monopolistically competitive firm must satisfy? a) price charged...
what is the profit-maximizing output condition that a monopolistically competitive firm must satisfy? a) price charged is greater than ATC b) price charged is equal to ATC c) price is less than marginal revenue d) marginal revenue is equal to marginal cost
12. (15 points) a. Draw a diagram to show a profit maximizing monopolistically competitive firm in...
12. (15 points) a. Draw a diagram to show a profit maximizing monopolistically competitive firm in a long run equilibrium, and fully explain your diagram. This requires use of cost curves plus demand and related curves. b. Explain what aspect of the market structure gives the firm "monopoly" power, and discuss how this is represented in the diagram. c. What aspect of the market structure makes the firm "competitive". How is this represented in the diagram?
In the long run, a profit-maximizing monopolistically competitive firm sets it price Multiple Choice above marginal...
In the long run, a profit-maximizing monopolistically competitive firm sets it price Multiple Choice above marginal cost. below marginal cost. equal to marginal revenue equal to marginal cost.
You are a business manager at a monopolistically competitive firm. One of your newly hired workers...
You are a business manager at a monopolistically competitive firm. One of your newly hired workers wants to know the following. (Please use the MR MC approach in your answer.) What are the steps required to determine the optimal level of output? What are the steps required to determine the price that corresponds to that optimal level of output? What are the steps required to determine if the firm has achieved maximum profits? What are the steps required to determine...
12. (15 points) a. Draw a diagram to show a profit maximizing monopolistically competitive firm in a long run equilibrium, and fully explain your diagram. This requires use of cost curves plus demand and related curves. b. Explain what aspect of the market structure gives the firm "monopoly" power, and discuss how this is represented in the diagram. c. What aspect of the market structure makes the firm "competitive". How is this represented in the diagram?
In the long run, a profit-maximizing monopolistically competitive firm sets it price Multiple Choice above marginal cost. below marginal cost. equal to marginal revenue equal to marginal cost.
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