Low barriers to entry and exit mean that in the ________ run for monopolistically competitive firms,...
Low barriers to entry and exit mean that in the ________ run for monopolistically competitive firms, it is ________ to generate economic profit.
| long; possible |
| short; possible |
| long; likely |
| long; impossible |
| short; impossible |
Homework Answers
Ans) the correct option is long; impossible
When there are low barriers or there is free entry and exit of firms, firms earn zero economic profit in the long run because new firms enter the market when there are positive profits and exit the market when there are negative profits
Add Answer to:
Low barriers to entry and exit mean that in the ________ run for monopolistically competitive firms,...
In the short run, low barriers to entry and exit allow new entrants into a monopolistically...
In the short run, low barriers to entry and exit allow new entrants into a monopolistically competitive market. False or True
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be su...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
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...
Question 42 New firms are able to enter monopolistically competitive markets because there are low barriers...
Question 42 New firms are able to enter monopolistically competitive markets because there are low barriers to entry. True False Question 43 For the monopolistically competitive firm. 5 pts SAMSUNG
12. In the long run: A. there will be no entry or exit of firms in...
12. In the long run: A. there will be no entry or exit of firms in this industry B. new firms enter the industry and curve A shifts to the right. C. firms exit this industry and curve A shifts to the left. D. new firms enter this industry and curve F shifts to the right. 13. The long-run equilibrium price in this industry will be: A. Pi 14. The industry's leng-run supply curve is curve: A. C and the...
18. How short-run profit or losses induce entry or exit
18. How short-run profit or losses induce entry or exitFantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal-revenue curve (MR), marginal-cost curve (MC), and average-total-cost curve (ATC).Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.Given the profit-maximizing choice...
2. Entry or exit in the long run Fantastique Bikes is a company that manufactures bikes...
2. Entry or exit in the long run Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.Given...
1. Which of the following is NOT a characteristic of a monopolistically competitive market?
1. Which of the following is NOT a characteristic of a monopolistically competitive market?A. many sellers.B. differentiated products.C. long-run economic profits.D. free entry and exit.2. Which of the following products is likely to be sold in a monopolistically competitive market?A. video games.B. breakfast cereal.E. beer.D. all of the above.3. Which of the following is true regarding the similarities and differences in monopolistic competition and monopoly?A. The monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand...
3. How short-run profit or losses induce entry or exit Fantastique Bikes is a company that...
3. How short-run profit or losses induce entry or exitFantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or...
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph...
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.Given the profit-maximizing choice of output and price, the...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
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...
Question 42 New firms are able to enter monopolistically competitive markets because there are low barriers to entry. True False Question 43 For the monopolistically competitive firm. 5 pts SAMSUNG
12. In the long run: A. there will be no entry or exit of firms in this industry B. new firms enter the industry and curve A shifts to the right. C. firms exit this industry and curve A shifts to the left. D. new firms enter this industry and curve F shifts to the right. 13. The long-run equilibrium price in this industry will be: A. Pi 14. The industry's leng-run supply curve is curve: A. C and the...
Most questions answered within 3 hours.
-
There can be more than one correct answer.
Hypophysiotropic hormones:
A. released by the hypothalamus
B....
asked 3 minutes ago -
Scott Ruskin is the CEO of Decatur Materials. The company has
been struggling for the last...
asked 1 minute ago -
If you were conducting a study involving twins regarding
genetics and/or upbringing, which would you use?...
asked 23 minutes ago -
Part 1- Inventory: You own a toy company and
you are producing wooden rocking horses. Assume...
asked 32 minutes ago -
What is aromaticity?
Identify aromatic molecules, especially those containing O, N,
S and B
asked 35 minutes ago -
A rubber solid circular wheel of uniform density spins about it
axis at rate of 60...
asked 47 minutes ago -
DNA evidence from an early human skeleton in Britain, shows that
early inhabitants of were blue...
asked 38 minutes ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 46 minutes ago -
To practice Problem-Solving Strategy 19.1 Work in Ideal-gas
Processes.
A cylinder with initial volume V contains...
asked 55 minutes ago -
Depreciation for Partial Periods Bean Delivery Company purchased
a new delivery truck for $35,400 on April...
asked 59 minutes ago -
Q 5.23:
Jonathan has been doing calculations to determine a missing
component. So far he has...
asked 57 minutes ago -
Use indifference curve and the daily income-leisure choice model
to explain graphically the behavior of employees...
asked 1 hour ago