3. The following graph summarizes the demand and costs for a firm that operates in a monopolistically competitive market. (LOI,LO3, LOS)$2202102001901801701601501401301201101009080706050403020100MR8 9 10 11 12 13 14 15 16a. What is the firm's optimal output?b. What is the firm's optimal price?c. What are the firm's maximum profits?d. What adjustments should the manager be anticipating?ATC22 23 24 25Quantity

When diverse products are offered in the market, it is called a monopolistic market. In the market,…

3. The following graph summarizes the demand and costs for a firm that operates in a monopolistically competitive market. (. LO3, LOS) $220 210 200 190 180+ 170 140 150 130 130 110 90 NO 20 40 50 40 30 20- 10 ATC MR 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a. What is the firm's optimal output? b. What is the firm's optimal price? c. What are the firm's maximum profits? d. What adjustments should the manager be anticipating? Quantity

3. The following graph summarizes the demand and costs for a firm that operates in a monopolistically competitive market. (. LO3, LOS) $220 210 200 190 180+ 170 140 150 130 130 110 90 NO 20 40 50 40 30 20- 10 ATC MR 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a. What is the firm's optimal output? b. What is the firm's optimal price? c. What are the firm's maximum profits? d. What adjustments should the manager be anticipating? Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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O 10-Q O 10-20 QUESTION 2 A non-competitive firm's demand curve is P = 10- 4Q. So its MR is O 5-20 O10-4Q N 10-8Q 05-Q OC QUESTION 3 For a non-competitive firm with a demand curve P = 1800-2Q and marginal costs of (Q)? 360 (400
If this firm is producing.... please solve
1. Explain the relationship between price, marginal revenue and average revenue for a perfectly competitive firm? 2. When does a perfectly competitive firm maximize their profits? What they should do if at their current production level their marginal revenue is greater than marginal cost? 3. Explain the difference between a shut-down decision and exiting decision for a competitive firm? When and how they make such decision? 4. Refer to the graph below: Price 19 18 MC 16 12 ATC 1 2 3 43 6 1 8 Quantity In the above graph, assume that the price per unit is $10. Based on this information calculate: a. Profit maximization quantity b. Total revenue at that level c. Total cost at that level d. Profit or loss for this firm (if any) Please refer to the discussion board requirement announcement before posting. First post due on Thursday, May 6th, and reply to two other student's posts due on Sunday, May 9th.
q 0 1 2 3 4 5 6 TFC $5 5 5 5 5 5 5 TVC $0 3 LO 5 9 16 25 36 MC - $3 2 4 7 9 11 P = MR $5 5 5 5 LO 5 5 5 A profit-maximizing firm should produce a quantity of TR $0 5 10 15 20 25 30 TC $5 8 10 14 21 30 41 Profit $-5 - 3 0 1 - 5 11 units. (Enter your response as a whole number.)
Which of the following statements in the full competitive market is correct? Choose an answer 1. The companies maximize their profit according to the rule «price equals average total costs». O 2. The companies maximize their profit according to the rule "marginal costs equal average total costs". 3. In the short term, the companies always make a profit. O 4. In the short-term market result, it always applies that the market price is above the average total costs. 5. In the long-term market result, the market price corresponds to the average total costs.
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In the figure at right, at which output level is this firm earning negative economic profits? O A. 12 OB. 2 OC. 5 O D. 10 Revenues and Costs ($) 180 160- 140- 120 100+ 80- 60- 40- 20- of 0 2 4 6 8 10 Quantity 12 14 TC TR 16 18 20
The figure on the right shows the demand schedule for a product produced by a single-price monopolist. Price ($) 9 8 0000 7 6 5 4 3 C. 5th unit Quantity demanded What is the lowest level of output at which marginal revenue becomes negative? OA. 6th unit OB. 9th unit D. 7th unit OE. 8th unit 5 6 7 8 9 10 11 Price ($) 141 222 =26=LO 13- 12- 11- 10- 9- 8- 4- 2- 1- 45 6 7 8 9 10 11 12 13 14 15 16 Quantity E
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9) Which of the following statements is not true about monopolistic competition in comparison to a perfectly competitive market? O Firms do not have market power in either of the two market structures. There are many firms in both market structures. Firms operating in a monopolistically competitive market make both output and pricing decisions while those in a perfectly competitive markets choose only the output level. Firms in both market structures make zero economic profits in the long run. Too
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