1. Conditions for monopolistic competition Consider the monopolistically competitive market structure, which has some features of a competitive market and some features of a monopoly. Complete the following table by indicating if each attribute characterizes a competitive market, a monopolistically competitive market, both, or nether. Check all that apply. Attributes Price equals average total cost in the long run Free entry few sellers Many sellers Competitive Market Monopolistically Competitive Market 0

1. Conditions for monopolistic competition Consider the monopolistically competitive market structure, which has some features of a competitive market and some features of a monopoly. Complete the following table by indicating if each attribute characterizes a competitive market, a monopolistically competitive market, both, or nether. Check all that apply. Attributes Price equals average total cost in the long run Free entry few sellers Many sellers Competitive Market Monopolistically Competitive Market 0

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Σ 00 Help The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a monopolistic firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Total Quantity Price Total Cost Marginal Cost Marginal Revenue Revenue $20 $30 25 475 230 $8 540 267.5 7.5 13 35 17 307.5 11 40 45 640 352.5 6. 11 15 675 14 472.5 13 5. Instructions: Enter your answers as whole numbers. For profit, round your answer to 2 decimal places. Profit-maximizing quantity = %3D Profit-maximizing price = %3D Profit = %3D 2 68°F Mostly clear nere to search 直 0 L Profile Ball®1.0 F6 F5 F4 F2 F1 & V 24 4 23 5. 3. 2. T R B C. Alt
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1. If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good? Explain. 2. What is the deadweight loss of monopoly? Show the deadweight loss when the monopolist can perfectly price discriminate. 3. What is the point of long run equilibrium of a monopolistically competitive firm. How does it compare to a competitive firm.
1. Briefly discuss the various ways monopolistically competitive firms can differentiate their products? 2. In the long-run, a perfectly competitive firm will earn what kind of economic profit?
Question 5 The diagram below illustrates a firm under monopolistic competition: Label the curves Curve I, Curve II, Curve III, Curve IV. Graphically identify profit maximizing output and price Explain how the amount of profit is defined at the maximum-profit output.
Suppose new firms enter a monopolistically competitive market. What is the effect of new firms entering the market from the perspective of the firms that were already in the market? Question 11Answer a. Positive supply shock b. Positive demand shock c. No effect d. Negative supply shock e. Negative demand shock
1. Why does the model of monopolistic competition does it have that name?
1. If the price of a movie rental is $4.00, Mary will rent 5 movies in a month. If the price of a movie rental is $3.00, Mary will rent 8 movies in a month. Mary’s price elasticity of demand for movie rentals is A. 0.00. B. 0.63. C. 1.00. D. 1.59. 2. A monopolistically competitive firm will benefit by spending some of its revenues advertising the product it produces. A. True B. False