what is the profit-maximizing output condition that a monopolistically competitive firm must satisfy? a) price charged...
Homework Answers
The profit maximization condition for the monopolistically competitive firm is where the marginal revenue equals the marginal cost, at this level the monopolistically competitive firm charges a price that is well above the marginal cost and the produces too little. The monopolistic competitive firms are price makers and they have got some market power, this is because they are producing the differentiated products. So some people stick with the brand irrespective of the price. 4
Ans: d). Marginal revenue equals marginal cost.
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what is the profit-maximizing output condition that a
monopolistically competitive firm must satisfy? a) price charged...
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.
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, 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.
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.
A profit-maximizing firm in a competitive market is currently producing 100 units of output
A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit?b. what is the marginal cost?c. what is its average variable cost?d. is the efficent scale of the firm more than, less than, or equal to 100 units?
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...
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.
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice...
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
When will a profit-maximizing firm in a competitive market always make marginal adjustments to production? Select...
When will a profit-maximizing firm in a competitive market always make marginal adjustments to production? Select one: O a. as long as average revenue is greater than average total cost b. as long as average revenue is equal to marginal cost c. as long as price is above or below marginal cost O d. as long as marginal cost is greater than average total cost
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.
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.
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...
At the profit-maximizing output, total fixed cost MC MR ATC b AVC hkn Output Multiple Choice is fgab. is Ogan. is ba Dollars Saved If a perfectly competitive firm is producing at the P MC output and realizing an economic profit, at that output Multiple Choice marginal revenue is less than price. marginal revenue exceeds ATC. ATC is being minimized. total revenue equals total cost. The average total cost curve for a perfectly competitive firm. Suppose the marginal cost curve...
When will a profit-maximizing firm in a competitive market always make marginal adjustments to production? Select one: O a. as long as average revenue is greater than average total cost b. as long as average revenue is equal to marginal cost c. as long as price is above or below marginal cost O d. as long as marginal cost is greater than average total cost
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