Homework Answers
Answer: demand curve is flatter.
Explanation:
A monopolistic market is defined as there are large number of sellers of a selling close substitute goods. The market demand curve is downward sloping. But each individual firm faces the residual demand. A demand curve of a firm in a monopolistic competition is called residual demand curve, a demand curve which shows the demand for product of one particular firm. A residual demand curve is flatter than the market demand curve because individual firm demand is more elastic than market demand.
On the other hand, in a monopoly market there is only one firm selling a good. There is no substitue for the good. The firm demand curve is same as market demand curve. So, it is steeper than the demand curve of a firm in monopolistically competitive market.
hus, option [C] is correct answer.
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The monopolistically competitive firm differs from monopoly in that its O a. profit is maximized where MR = MC. 1 b...
If a perfectly competitive firm is producing a quantity where MC < MR, then profit: Select...
If a perfectly competitive firm is producing a quantity where MC < MR, then profit: Select one: a. can be increased by decreasing production. b. is maximized. c. can be increased by increasing production. d. can be increased by decreasing the price.
QUESTION 6 A perfectly competitive firm will maximize profit where: a. MC> MR b. MC<MR C....
QUESTION 6 A perfectly competitive firm will maximize profit where: a. MC> MR b. MC<MR C. MR M d. MC MR
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...
Price ATC MC MR Quantity This monopolistically competitive firm is currently experiencing if it is operating...
Price ATC MC MR Quantity This monopolistically competitive firm is currently experiencing if it is operating at the profit-maximizing output. a profit zero economic profits a loss
a) Why is a monopolistically competitive firm less efficient than a perfectly competitive firm? It produces...
a) Why is a monopolistically competitive firm less efficient than a perfectly competitive firm? It produces at an output that is lower than its minimum efficient scale (MES) It earns positive economic profits in the long run It deters entry of new firms by putting up entry barriers All of the answers are correct b) Suppose a monopolistically competitive firm has MC=4Q+5. Its demand is P=145-3Q and marginal revenue is MR=145-6Q. What is its profit-maximizing output level? 17 14 16...
o Price and costs G MR Quantity a. Suppose this monopolistically competitive firm produces where there...
o Price and costs G MR Quantity a. Suppose this monopolistically competitive firm produces where there is productive efficiency. The resulting price and quantity combination is illustrated by which point on the graph? b. When producing at this point of productive efficiency, will the firm experience a normal profit or an economic profit? Explain your answer. C. Suppose the firm produces where there is allocative efficiency. The resulting price and quantity combination is illustrated by which point on the graph?...
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping...
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of: O a monopoly firm. O a perfectly competitive firm. an oligopoly firm. a duopoly firm. QUESTION 4 Aside from advertising, how can monopolistically competitive firms increase demand for their products?! government edict. increasing its price. decreasing its price. Increasing the number of locations where it...
Which of the following statements is true of a monopolistically competitive firm? a. It produces more...
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...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive firm owns a key resource, but a monopoly firm does not. b. A competitive firm is a price taker, and a monopoly is a price maker. c. A competitive firm produces output at a lower cost than a monopoly firm. d. A competitive firm is subject to government regulations, but a monopoly firm is not. 2.) What is the main social problem caused by...
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65....
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65. Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by: A) diagram a only. B) diagram b only. C) diagram conly. D) both diagrams a and c. 66. Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by: A) diagram a only. B) diagram b...
QUESTION 6 A perfectly competitive firm will maximize profit where: a. MC> MR b. MC<MR C. MR M d. MC MR
Price ATC MC MR Quantity This monopolistically competitive firm is currently experiencing if it is operating at the profit-maximizing output. a profit zero economic profits a loss
o Price and costs G MR Quantity a. Suppose this monopolistically competitive firm produces where there is productive efficiency. The resulting price and quantity combination is illustrated by which point on the graph? b. When producing at this point of productive efficiency, will the firm experience a normal profit or an economic profit? Explain your answer. C. Suppose the firm produces where there is allocative efficiency. The resulting price and quantity combination is illustrated by which point on the graph?...
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of: O a monopoly firm. O a perfectly competitive firm. an oligopoly firm. a duopoly firm. QUESTION 4 Aside from advertising, how can monopolistically competitive firms increase demand for their products?! government edict. increasing its price. decreasing its price. Increasing the number of locations where it...
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...
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65. Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by: A) diagram a only. B) diagram b only. C) diagram conly. D) both diagrams a and c. 66. Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by: A) diagram a only. B) diagram b...
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