1. Consider a monopolistically competitive firm. The following table presents the cost and revenue datafor the firm:CostsRevenuesTCMCQ PTRMR0 501 452 403 35251272303344394 305 256 207 158 105456527608.69What is the firm'sut?When :profii, what price does the firm charge?(c) At the profit-maximizing quantity, what is the firm's total profit?

Monopolistic competition is a market system that incorporates the features of both monopolistic and…

1. Consider a monopolistically competitive firm. The following table presents the cost and revenue data for the firm: Costs Revenues TC MC Q P TR MR 0 50 1 45 25 1 27 30 2 40 34 3 35 4 39 4 30 5 25 6 20 7 15 8 10 5 45 52 7 60 8. 69 (a) What is the firm's output? (L} CWhen maxiniizing profit, what price does the firm charge? (c) At the profit-maximizing quantity, what is the firm's total profit?

1. Consider a monopolistically competitive firm. The following table presents the cost and revenue data for the firm: Costs Revenues TC MC Q P TR MR 0 50 1 45 25 1 27 30 2 40 34 3 35 4 39 4 30 5 25 6 20 7 15 8 10 5 45 52 7 60 8. 69 (a) What is the firm's output? (L} CWhen maxiniizing profit, what price does the firm charge? (c) At the profit-maximizing quantity, what is the firm's total profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

$19 16 13 10 0 100 Multiple Choice O MC O O O 160 180 210 Quantity MR Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. If this firm is currently producing and selling 210 units of output, we can conclude that this firm ATC Is maximizing economic profits. D Is earning economic profits that could be increased by raising price and lowering output. Is breaking even, but could earn profits by raising price and lowering output. Is earning economic profits that could be increased by lowering price and raising output.
4. A monopolist is faced with the following cost and revenue curves: $ 80 70 60 50 40 30 20 10 0 -10 0 -20 100 200 300 400 FMC 500 AC AR 600 MR Quantity (a) What is the maximum-profit output?. (b) What is the maximum-profit price? (c) What is the total revenue at this price and output? (d) What is the total cost at this price and output? (e) What is the level of profit at this price and output? (f) If the monopolist were ordered to produce 300 units, what would be the market price? (g) How much profit would now be made? (h) If the monopolist were faced with the same demand, but average costs were constant $60 per unit, what output would maximise profit? (i) What would be the price now? (j) How much profit would now be made? (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of $40. How much will now be sold?.
H2
4. Study Questions and Problems #4 Consider this statement: "Because price equals long-run average cost and profits are zero, a monopolistically competitive firm is efficient." Do you agree or disagree? Agree, because a monopolistically competitive firm produces a socially optimal output. Disagree, because a monopolistically competitive firm does not produce enough output from a socially optimal point of view. Disagree, because a monopolistically competitive firm produces too much output from a socially optimal point of view.
(Figure: The Market for Designer Boots in Monopolistic Competition IV) Use Figure: The Market for Designer Boots in Monopolistic Competition. A positive economic profit will be earned if the profit-maximizing price is in panel Price, cost XXX G; (A) H; (B) (a) O I; (C) O F; (A) ATC Quantity (per period) Price, (b) cost ATC Quantity (per period) Price, (c) cost ATC Quantity (per period)
b. Suppose a price-discriminating monopoly has segregated its market into two submarkets and can prevent resale between the two. Assume that its marginal cost is constant and equal to its average total cost of $8. The firm's demand schedule for the first group is given by the first two columns of the following table. Output Price MR TR AR 24 1 22 20 3 18 4 16 5 14 12 7 10 8 8
I need answer typing clear no chatgpt i will give 5 upvotes
TC 50 TR 40 30 20 10 10 15 20 25 30 Quantity (units per day) 34) The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is positive if it produces between A) 0 and 20 units. B) 5 and 20 units. C) 0 and 15 units. D) 0 and 5 units. Total revenue and total cost (dollars per day)
You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.
1 Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 62 units of output per day. The average total cost (ATC) for those 62 units is $18. Instruction: Round your answers below to the nearest whole number. How much revenue will it take in each day? $ ook What will be its economic profit or loss? FInt Loss v of $ rences Next, suppose that entry or exit occurs in this monopolistically competitive industry and establishes a long-run equilibrium. If the firm's daily output remains at 62 units, what price will it be able to charge? $ What will be its economic profit or loss? Neither profit nor loss v of $ rev 1 of 9 Next > MacBook Air
COURSE: MICROECONOMICS 2 - MONOPOLY IN DURABLE GOODSA monopolistic firm has estimated its inverse demand function as P = 200 − 0.5 Q + 40*(1/UL) with a increasing marginal cost (MC) estimated to be 10 Q. (a) Estimate effect on firm's extraordinary profit if it changes useful life (UL) of its product from 8 years to 5 years. b) What will happen to selling price?
1. Use the following demand schedule to determine total revenue and marginal revenue for each possible level of sales: table below: Product Price $2 2 2 2 2 2 Quantity Demanded 0 I 2 3 Total Revenue Marginal Revenue 4 5 you conclude about the struct or the industry in which firm is des. b. Graph the demand, total-revenue, and marginal-revenue curves for this firm c. Why do the demand and marginal-revenue curves coincide? d. "Marginal revenue is the change in total revenue associated with additional units of output." Explain verbally and graphically, using the data in the table.