Which is true for a firm operating in monopolistic competition? A. They maximize profits where MR=MC...
Which is true for a firm operating in monopolistic competition?
A. They maximize profits where MR=MC
B. They will charge a price higher than MR
C. In the long run, profits will be zero
D. All of the above
Homework Answers
Option D.
- Monopolistic competition is a type of market competition in which firms operating under this market sell differentiated products to their customers.
- These firms tend to maximize their profits at a point where marginal revenue equals marginal cost.
- They charge more than MR and produce less when compared to a perfectly competitive firm.
- These firms tend to have zero economic profits in Long run.
Add Answer to:
Which is true for a firm operating in monopolistic
competition?
A. They maximize profits where MR=MC...
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...
An monopolistic competition producer will produce at an optimal level of output that will maximize profits...
An monopolistic competition producer will produce at an optimal level of output that will maximize profits in the short-run when: a. MC = AC b. MC > AC c. MR = MC d. MC = AFC e. none of the above
Which of the following is not true of both firms in monopolistic competition and firms in...
Which of the following is not true of both firms in monopolistic competition and firms in perfect competition? A. Both types of firms produce at minimum ATC. B. Both types of firms produce where MC MR. C. Both types of firms have the possibility of short-run economic profits or losses. O D. Both types of firms can earn zero economic profits in long-run equilibrium
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure?...
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure? Many sellers, each small in size relative to the overall market. Few sellers. Differentiated product. Easy, low-cost entry and exit. QUESTION 2 Which of the following is the best example of a monopolistic competitor? Wheat farmers. Restaurants. Air Canada. General Motors. QUESTION 3 In the long run, both monopolistic competition and perfect competition result in: a wide variety of brand-name choices for consumers. an...
1. MR = MC=P holds for A. all firms B. monopoly C. monopolistic competition...
1. MR = MC=P holds for A. all firms B. monopoly C. monopolistic competition D. perfect competition 2. Consumer's surplus is A. demand price plus equilibrium price B. supply price above market price C. demand price plus supply price D. demand price less equilibrium price 3. In the short run, a monopolist may a. attract other firms into the industry b. upgrade technology c. incur loss d. charge the...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic profits. negative economic profits. Positive, zero, or negative economic profits. QUESTION 8 Which of the following statements best describes firms under monopolistic competition? Profits will be positive in the long run. Price always equals average variable cost. In the long run, positive economic profit will be eliminated. Marginal revenue equals minimum average total cost in the short run. QUESTION 9 Which of the following...
10. Under conditions of monopolistic competition, a firm maximizes profits where a. MR equals AR b....
10. Under conditions of monopolistic competition, a firm maximizes profits where a. MR equals AR b. MR = AVC c. MR = ATC d. MR equals MC 12. The benefit your neighbor enjoys without charge when you landscape your yard is an example of a. how markets always achieve efficiency. b. a positive externality. c. how an externality has been internalized. d. a negative externality. 15. Which of the following is an example of a negative externality? a. emancipation park...
Which market structure can earn long-run economic profits? a. Perfect competition b. Monopolistic competition c. Oligopoly...
Which market structure can earn long-run economic profits? a. Perfect competition b. Monopolistic competition c. Oligopoly d. Monopoly e. c and d only All firms produce where a. marginal benefits are greater than marginal profits b. short-run profits are less than long-run profits c. marginal revenues are greater than or equal to marginal costs d. average total costs are greater than marginal costs A perfect competitor is a __________ and can earn economic profits ____________. a. price maker, in both...
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b....
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b. increase competition. c. behave independently. d. maximize joint profit. 2. If a firm's product loses brand loyalty, then the demand curve will: a. Become less price elastic. b. Shift to the right. c. Become more price elastic. d. Shift to the left. 3. Assume a monopoly confronts the same costs and demand as a competitive industry. In this case, the monopolist produces: a. Less...
17. To maximize profits, a firm must choose its quantity at the point where... a. Total...
17. To maximize profits, a firm must choose its quantity at the point where... a. Total revenue (TR) - total cost (TC). b. Marginal revenue (MR)= marginal cost (MC). c. MR-MC is maximized. d. TR is maximized. 18. For a profit maximizing monopoly that uses the same price for all its customers, which of the following is true at the monopoly's profit maximizing quantity? a. MR =P b. MC-P. c. MR>P. d. MC>P. e. MR<P
Which of the following is not true of both firms in monopolistic competition and firms in perfect competition? A. Both types of firms produce at minimum ATC. B. Both types of firms produce where MC MR. C. Both types of firms have the possibility of short-run economic profits or losses. O D. Both types of firms can earn zero economic profits in long-run equilibrium
17. To maximize profits, a firm must choose its quantity at the point where... a. Total revenue (TR) - total cost (TC). b. Marginal revenue (MR)= marginal cost (MC). c. MR-MC is maximized. d. TR is maximized. 18. For a profit maximizing monopoly that uses the same price for all its customers, which of the following is true at the monopoly's profit maximizing quantity? a. MR =P b. MC-P. c. MR>P. d. MC>P. e. MR<P
Most questions answered within 3 hours.
-
Mittuch Corp. is evaluating a project with the following cash
flows. The company uses a discount...
asked 1 minute from now -
When finding confidence interval for mu , if population standard
deviation (sigma) is known, we use...
asked 4 seconds ago -
1. If a good has a price elasticity of demand equal to
0, ________.
a) the...
asked 1 minute ago -
1. Research through the literature give other ways of converting
methyl benzenes to benzoic acids, draw...
asked 3 minutes ago -
a) A car has a fuel economy of 25 miles per gallon. Calculate
this value in...
asked 14 minutes ago -
Q1- say a letter in a word is missing, can you find the missing
letter? For...
asked 22 minutes ago -
What is the temperature of 100.0 grams of chlorine gas in a
55.0-L container at 800....
asked 35 minutes ago -
POLITICAL SCIENCE: Is members of the House of Representatives
responsive to public opinion?
asked 35 minutes ago -
The following information is available for two samples selected
from independent normally distributed populations. Population A:...
asked 37 minutes ago -
Hello, I have questions on Matlab. Let's say that I have an
equation. Signal x(t)= cos(2*pi*10*t)...
asked 1 hour ago -
choose a radioactive isotope used in healthcare or another field
and report on how your isotope...
asked 1 hour ago -
Balance the following half-reactions in acidic solution,
identify the oxidation states of the metal atoms, and...
asked 1 hour ago