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 increase/decrease)? How much profits do you expect the firm to earn in the long run?
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A monopolistically competitive firm has the following demand and
total cost curves:
Demand: P= 9 -0.25Q...
The figure shows the demand and cost curves for a monopolistically competitive firm in the long...
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The figure is drawn for a monopolistically competitive firm. MC ATC 140 123.33 8 PRICE Demand...
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a. It produces more than a perfectly competitive firm.
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entry.
c. It charges lower prices than a perfectly competitive
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d. It earns positive economic profits in the long run.
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The figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The maximum economic profit this firm can earn equal equals O A. $160. B. $80. OC. $0. OD. $120. MC ATC Price and costs (dollars per unit) MR 4 8 12 16 20 24 Quantity (units per day)
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The following graph shows the demand and cost curves for a perfectly competitive firm. The profit-maximizing firm will: MC ATC // AVC Multiple Choice shut down. ο produce with short-run losses. O produce with long-run economic profits. ο produce with short-run economic profits.
8. Refer to the graph above depicting a perfectly competitive firm. When maximizing profit, the total profit earned by the firm represented is: A. $220. B. $275. C. $330 D. $605, 26. Refer to the graph above of a monopolistically competitive firm. If the firm maximizes profit, it will earn: A. zero economic profit this year. B. $320,000 economic profit this year. C. 584,000 economic profit this year. D. $56,000 economic profit this year. ATC AVC - 01 02 03...
Which of the following statements is true of a monopolistically
competitive firm?
a. It produces more than a perfectly competitive firm.
b. Its profits are protected by significant barriers to
entry.
c. It charges lower prices than a perfectly competitive
firm.
d. It earns positive economic profits in the long run.
e. It faces a downward sloping demand curve.
.
Which of the following statements is false? B D Cost and Price E F Quantity Point B shows the level...
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