2. Understanding excess capacityThe following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive marketin the short run.Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow.QuantityPriceTotal CostMarginal Cost(Board games)(Dollars per game) (Dollars)(Dollars)12345615.001512.002010.00278.00326.00356784.00423.00481.0056Total Revenue(Dollars)Marginal Revenue(Dollars)Average Total Cost(Dollars)Under monopolistic competition, a typical firm will produceboard games at a price of $per board game in the short run.Based on your calculations, the firm willFill in the Average Total Cost column in the previous table.Based on your calculations, the level of excess capacity in this monopolistically competitive market is

Detailed explanation: Based on the table provided, a typical firm in a monopolistic competition…

Answered: 2. Understanding excess capacity The…

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
2.7 Your marketing research department has estimated the demand for your firm's product to be Q=10,000 100P and the marginal revenue to be MR 100 .02Q = If marginal cost and average total cost are constant at $40, 1. How much would you produce? The quantity you should produce is 3,000 units 2. What price would you charge? I would charge $70 3. How much economic profit would your firm earn? $90,000 4. Illustrate your answers to parts a through c in a diagram.
(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)
The information below provides conditions faced by a monopolistically competitive firm. Price and costs $70 $65 $60 $55 $50 $45 $40 $40 $35 $30 $25 $250 $20455 $15 $10 $5 0 $32.50 MIR Quantity MC ATC Demand Use the information above to answer the following question. This monopolistically competitive firm's economic profit/loss is $.
Use the figure below to answer the following questions. Price and cost (dollars per unit) MC Ps РА P₂ P 0 Q1 Q2 Q3 Q4 QQ₂ Q3 Q zero MR Refer to Figure 13.2.4. The figure represents a monopolistically competitive firm in short-run equilibrium. What is the firm's level of output? ATC Quantity (units) Figure 13.2.4
Using the Online Self Study Certifications table, answer the following question: What is the maximum revenue for individual pricing? Continuing with the Table of Certificate Programs, complete the Total Revenue for the Bundled Programs: Online Self Certifications for Social Work License Online Self Certifications for Social Work License Customers Certification in Online Counseling 28 TR Counseling Certification as a Group Home Counselor Bundle TR Group Home TR Bundle Segment 1 1000 $190 a $70 e $260 49 4a $255 4c Segment 2 1000 $150 b $90 f $240 4b Ho 6 $195 h $230 4d Segment 3 1000 $95 C $160 Segment 4 1000 $35 P
PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 0 MC 50 100 150 ATC MR 200 250 QUANTITY (Bikes) Demand 300 350 400 450 500 Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, the shop is making hp Profit or Loss shops in the industry relative to the long-run equilibrium. n profit, which means there are
3. A monopolistically competitive firm sells boots and has the following in the short run: Demand: P = 80 – 0.5Q %3D MR: MR = 80 – Q TC = 1.5Q? + 40 1.5Q + (40/Q) TC: АТC: MC: MC = 3Q %3D Find the firm's profit maximizing quantity and price. Find the firm's profit or loss. Show some work here: Quantity = Price = Profit or Loss = (circle one, and write the number)
3. The graph below shows a firm's demand, marginal revenue, and marginal cost curves. Find the profit-maximizing level of output and mark it q*. Find the price the firm should charge and mark it P*. P MC X D MR Quantity 4. The Whatsa Widget Company has a monopoly over the sale of widgets in a small midwestern town. The firm's demand, marginal revenue, marginal cost, and average cost curves are shown below. Find the firm's profit-maximizing level of output and the price the firm will charge. Is the firm earning a positive or a negative profit? Show the firm's profit (or loss) on the graph. P MC X MR D ATC
Westchesser Gloves is a monopolistically competitive firm that sells leather gloves. a. In the graph below, highlight the area of profit or loss. Price per pair ($) Incorrect 10 9 8 7 3 2 1 0 Average total cost 0 10 20 30 40 50 Pairs of gloves (in thousands) Westchesser's profit/loss: $ Marginal cost 80 Incorrect Demand Marginal revenue 60 70 80 90 100 b. Calculate Westchesser's profit/loss at the profit maximizing price. Profit or loss
5. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. PRICE (Depar 500 450 350 300 250 300 150 100 MC 50 50 100 ATC MR Demand 150 200 250 300 350 400 450 500 QUANTITY (Scooters) +- Monopolically Comp Profit or Lasa ▼profit, which means there are Given the profit-maximizing choice of output and price, Citrus Scooters is earning sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to enter and…
PRICE (Dollars per engine) 100 90 80 70 60 40 30 & 2 20 10 MO D 0 10 ATC MR Demand 20 30 40 50 60 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimum

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