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

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3. Monopolistic competition in the short run Consider a shop that produces muffins in a monopolistically competitive market. The following graph shows its demand curve (Demand), marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Assume that the company is operating in the short run. PRICE AND COSTS (Dollars per muffin) $3.50 $2.75 $2.50 $1.90 $1.00 The profit-maximising level of output is At the profit-maximising output and price, the shop's profit equals Given the profit-maximising choice of output and price, the shop is making there are 1 I MR MC 1 1 1 Demand 230 280 QUANTITY (Muffins per day) muffins per day at a price of 160 ATC each. profit, which means that shops in the industry relative to the long-run equilibrium.
7. The diagram below shows the demand and cost situation of a firm in a monopolistically competitive industry. 15 12 t1 e 18 20 40 so 60 70 60 10 10 110 120 1 140 150 sED 170 180 a. What output will this firm choose? Why? b. What price will it charge? Why? c. What is total revenue and total cost at the profit maximizing output? (E) al na pur a
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17 of 16 BNW is one of many producers of luxury wheelchairs, which are differentiated to appeal to different market niches. BNW's Price per chair relevant demand and cost curves are depicted in the graph. $2,000 Average total Use this graph to answer the questions. Assume that there are 1,800 Marginal cost no significant barriers to entry. cost 1,600 Determine BNW's profit-maximizing price and quantity. 1,400 1,200 1,000 price per chair: $ 800 600 400 quantity of chairs: chairs 200 Demand Marginal revenue 100 200 300 400 500 600 700 800 900 Calculate BNW's profit. Chairs per week BNW's profit: $
ATC P1 P2 P3 P4 MR Q4 Q3 Quantity Qi Q2 What is the profit maximizing output for the monopolistic competitor? O Q3 O Q4 OQ1 O Q2 Price
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MN 00 工 25 Price %24 For the monopolistically competitive firm in the following figure, the profit-maximizing price is and the quantity is MC ATC 32 20 Demand MR Quantity O $20; 25 O $16; 25 O $32; 25 O $20; 40 10:12 PM 75°F ENG earch 12/12/2021 f12 Ins prt sc delete home 61 pua f5 dn 6d f4 84 114 144 米 backspace lock 4. 5. R. home enter 4. K. pause ↑ shift end 2. C. alt ctrl
4. Is monopolistic competition efficient? Suppose that a company operates in the monopolistically competitive market for electric razors. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. (?) PRICE (Dollars per razor) 100 90 80 70 60 50 40 30 20 10 0 MC 0 10 ATC MR 20 30 40 50 60 70 QUANTITY (Thousands of razors) 80 Demand 90 100 + 1. Mon Comp Outcome Min Unit Cost
k Onli.... s 15 10) Below are drawn cost curves for a monopolistically competitive firm. What is the profit? 16 14 812 10 Dollars 0 MC MR 20 23 25 30 Number of haircuts ATC 9 D
Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity for each firm. Further, the quantity the firm produces in long-run equilibrium is the efficient scale. True or False: This indicates that there is excess capacity in the market for jackets. O True False Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of the externality implies that there is too much entry of new firms in the market.
9 When entry occurs in a monopolistically competitive industry, which of the following occurs? A The perceived demand curve for each firm shifts to the right. The perceived demand and marginal revenue curves for each firm shift to the right. The perceived demand and marginal revenue curves for each firm shift to the left. DO The marginal revenue curve for each firm shifts to the right.
MN 00 25 Price %24 Question 42 of 60 > For the monopolistically competitive firm in the following figure, the profit-maximizing price is and the quantity is MC ATC 20. 16 Demand MR 40 Quantity O $20: 25 O $16: 25 O $32; 25 O $20; 40 10:55 PM 74 F 12/12/2021 Ins prt sc delete home 12 Oy 114 dn 6d pue 144 91 & backspace wnu lock 5. 7. 4. home 6d T. enter H. pause ↑ shift 2. LE ctrl alt Sut