Doo 28. Under which market structure,average revenue of a firm is equalto its marginal revenueA.OligopolyB. O MonopolyC. O Perfect competitionD. O Monopolistic competition

To find : When is average revenue equal to it's marginal revenue.

Answered: 3. Under which market structure,…

Business

Economics

3. Under which market structure, average revenue of a firm is equal to its marginal revenue

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 5SQP

See similar textbooks

Related questions

Q: If the natural rate of unemployment is 4.5 percent, the current unemployment rate is 7.6 percent, an...

A: We will answer the first question since the exact one was not specified. Please submit a new questio...

Q: How is education level impact the lives of consumers?

A: Consumers are the people who make purchases. For a business organization, it is very important to un...

Q: You are a manager of an advertising company. The company is running short of funds, so you decide to...

A: The revenue of a firm can be calculated by multiplying the price of goods by quantity. Total Revenue...

Q: 5. Given the following utility function U(c1, c2) = [ac{ + (1 – a)c²]? where 0 < a, p < 1. a. Find U...

A: As the bartleby rules we are allowed to answer only the 1st three parts of any question when it has ...

Q: QUESTION 33 Ricardo's theory of trade is based on (A: productivity of labor; B: doportunity cost; C:...

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

Q: rice Quantity demanded Quantity supplied $300 60 30 $400 55 40 $500 50 50 $600 45 60 ...

A: Initial Equilibrium : When quantity demanded=quantity supplied. We can observe this when price=$500....

Q: The demand for bicycles is given by the equation: Q = 1000 – 5P - There are currently 100 identical ...

A: Given information Market Demand function Q=1000-5P Firms Cost functionC=252q2+20q+50 There are 100 f...

Q: . A monopoly is currently producing an output level where P = $30, MR = $20, AVC = $16, AC = $24, a...

A: Monopoly Monopoly refers to a market in which there is only one single seller. Due to high hurdles t...

Q: Explain briefly what the consumer price index tries to measure?

A: The CPI is a weighted average of prices for various consumer goods and services, such as transportat...

Q: (Q4) Explain carefully why a chemical plant polluting the atmosphere might generate a negative produ...

A: The marginal cost of pollution is the additional environmental cost incurred as a result of producin...

Q: 9. Scarcity means O Non-availibility of goods O High price of goods : O Less supply than demand

A: To find : What is scarcity

Q: Consider the following payoff matrix for a simultaneous move game. PLAYER 2 Strategy R U (10,5) (10,...

A: Given Game Dominated strategy which player never wants tp play irrespective what opponent plays.

Q: Reese has recently left her teaching job to open a bakery. The ______ is an example of the implicit ...

A: The cost incurred is either implicit cost or explicit cost. Explicit cost is the cost which is incur...

Q: 3. Suppose the total cost of q units produced by an increasing-cost industry is given by C(q) =g + 8...

A: Total cost function: C(q) = q2 + 8q The function of aggregate willingness to pay: WTP(q) = 100q - 2q...

Q: Using a method similar to that used to calculate the consumer price index, the percentage change in ...

A: Consumer price index "it measures the average change in price over time in a fixed market basket of ...

Q: What will happen to the trade balance and the real exchange rate of a small open economy when gove...

A: Answer: There will be a negative impact on the trade balance and the real exchange rate of a small o...

Q: 2. Which of the following is not characteristic of a cartel situation? (a) While disagreement over p...

A: When cartels are formed then there are few sellers and a large number of buyers, in general cartels ...

Q: In the case of a Giffen good, the demand curve will be

A: To find : What will be demand curve.

Q: What is the difference between the explicit and implicit cost

A: Cost In popular use, cost refers to the monetary worth of products and services purchased by produce...

Q: why is the economy not self-correcting? What can be done about it?

A: The principle that if economy is left to its own devices is called self-correcting. When an economy ...

Q: What's the current yield of a 3.8 percent coupon corporate bond quoted at a price of 102.08

A: Current Yield The yearly income (interest or dividends) from an investment is divided by the current...

Q: Johnson's Household Products has a division that produces two types of toothpaste: a regular toothpa...

A: Given: p=3000-20x-10y q=4000-10x-30y Note: Due to multiple subparts being posted, the first three su...

Q: a. Shift the appropriate curve or curves to show the initial short-run adjustment. Then place the po...

A: IS curve can be shifted either towards the right or to the left when there are fiscal policies taken...

Q: This person earns $1000 of income today and $2000 income next year. Point C represents his consumpti...

A: To find : Consumption of next year

Q: You are the economic advisor of the ruler of Pongo. Suppose the people in the country of Pongo love...

A: Answer -

Q: Suppose the price reaction function for Mars' chocolate bars is Pm = (Vm+cm)/2)+0.5Ph, where Pm is t...

A: Price reaction function for Mars chocolate is:- Pm = (Vm +Cm)/2) + 0.5Ph Price reaction function for...

Q: When the consumer has limited buying options from a company, the company utilizes which of Porter's ...

A: Porter's Five Competitive Forces Porter's Five Forces basically refers to a model that identifies an...

Q: Answer the folowing questions in relation rade a. Determine the opportunity costs for cach nation b....

A: Given The production possibility curve of both nations is a straight line which means that the oppo...

Q: Germany Production Possibilities (Production Alternatives) Product D Autos 4 12 16 20 Chemicala 40 3...

A: * SOLUTION :- Given that , (3)

Q: Which of the following examples comes closest to a perfectly competitive market

A: Perfect Competition : It is a market form where there are large number of buyers and sellers selling...

Q: 28. Under which market structure, average revenue of a firm is equal to its marginal revenue A. O Ol...

A: "Correct option is C."

Q: The was formed in 1969 when Bolivia, Chile, Ecuador, Columbia, and Peru signed the Cartagena Agreeme...

A: Cartagena Agreement was related to biosafety.

Q: 24. An isoquant slopes A. O Downward to the left B. O Downward to the right C. O Upward to the right...

A: "Correct option is B."

Q: Amy has $24.00 a week to spend on coffee and Quantity (cups of coffee per week) рop. 24- The price o...

A: Budget line: - it is the graphical representation of different combinations of two goods that a cons...

Q: If the price elasticity for bananas at the farmers' market is 1.5, is demand elastic, inelastic, or ...

A: Let's first understand what's actually the concept of elasticity of demand. The elasticity of deman...

Q: 8. Fill in the blanks: Suppose that a monopoly faces the following demand schedule. It costs the mon...

A: Price ($) Output TR ($) VC ($) (3*output) FC ($) TC ($) VC+FC Profit ($) TR-TC 10 1 10 3 4 ...

Q: In the productivity curve figure, the impact of eduction and training that increases Real GDP per ho...

A: Here, the given figure shows two productivity curves of an economy with real GDP on y-axis and capit...

Q: Which of the following statements are correct? Select one or more: O a. Government spending on goods...

A: GDP The Gross Domestic Product (GDP) basically refers to the sum of all the value added in a given e...

Q: At point C, how many units of Good X are bought? Good X 8 (?X, ?Y) C(?X, ?Y A (55X, ?Y) udet inemess...

A: A budget line is the graphical representation of different combinations of two goods that can be pur...

Q: . A Sixteen Tons Question: A coal mine in a small town is a monopsony with a supply of labor functi...

A: Monopsony refers to the factor market condition where single buyer exists in the market.

Q: can be defined as a situation in which one producer, or a group of producers acting in concert, cont...

A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are ...

Q: Pleased answer attached

A: Since we only answer up to 3 sub-parts we will answer the first 3. Please resubmit the question spec...

Q: QUESTION 42 For participating countries, a drawback of a single currency in Europe is that A. costs ...

A: In the European union, approx 19 members have euro as the official currency, which implies that they...

Q: How many countries are members of the European Union? (closest number if not exact) А. 4 В. 9 С. 28 ...

A: EU (European Union) is the union in which there are 28 member countries. The aim of this union is to...

Q: QUESTION 8 The nearest and largest trading partner with the United States is: OA. Canada. B. Mexico ...

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any sp...

Q: Consider the following closed economy: C = 30 + 0.87 x YD. 1= 2400 G = 2000 TR = 30 T = 0,40 x Y If ...

A: An economy is closed when there are no trading activities with the outside economies. The formula fo...

Q: 4. A conceptual difference between a firm operating in a perfectly competitive market and a firm ope...

A: Perfectly competitive market is characterised by the many buyers and sellers and products are identi...

Q: Suppose a manufacturer of exercise equipment sets a suggested price to the consumer of $395 for a pa...

A: Here, the given information explains the nature of the manufacturer to set the price of exercise equ...

Q: O A. The consumption function shifts from A to B and the saving function shifts from C to D. O B. Th...

A: The consumption function is the relationship between disposable income and consumption. Whereas savi...

Q: Consider the following measures and draw a suitable supply-demand diagram for each. In addition to t...

A: Demand and supply In perfect market competition the optimum quantity is produced where the demand cu...

Question

Doo

28. Under which market structure,
average revenue of a firm is equal
to its marginal revenue
A.
Oligopoly
B. O Monopoly
C. O Perfect competition
D. O Monopolistic competition

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
Continuing with the scenario in question 1, in the long run, the positive economic profits that the monopolistic competitor earns will attract a response either from existing firms in the industry or film outside. As those films capture the original films profit, what will happen to the original films profit-maximizing price and output levels?
Make a case for why monopolistically competitive industries never reach long-run equilibrium.
Which of the following is not a difference between perfect competition and monopolistic competition? The monopolistic competitor faces a downward sloping demand curve. O Long run economic profit. O Excess capacity. Mark up over marginal cost. МaсBook esc F1 F2 F3 F4 F5 $ % 2 4 6. W R tab S D F caps lock Z X V # 3
What is an assumption of the model of monopolistic competition? O Consumers lack adequate information about the prices and qualities of products. O There are significant barriers to entry in the market. O There are only a few firms in the industry. O Nonc of thesc choices.
A firm in monopolistic competition maximizes its profit by ०२ 5 A. producing the quantity at which marginal cost equals marginal revenue and charging the highest price at which it can sell that quantity 4 OB. differentiating its good and producing the quantity at which price equals marginal revenue O c. raising its price and producing so that it always has excess capacity OD. producing the quantity at which marginal revenue equals marginal cost and then adding a markup 6 Oll M & 7 O ... * 8 9 Next E Canva suppor d? ES
Which of the following is a characteristic of monopolistic competition? O few sellers O homogeneous product zero long-run profits O barriers to entry OO
1 po QUESTION 16 An industry comprised of four firms, each with about 25 percent of the total market for a product, is an example of O A. monopolistic competition CO B. oligopoly O C. pure monopoly O D. pure competition
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 (Dolars per kit) 100 8 80 70 50 8 10 0 MO 10 ATC 20 30 O True O False MR 60 70 QUANTITY (Thousands of kits) Demand 40 80 90 100 Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is True or False: This indicates that there is excess capacity in the market for kits. at the optimal quantity for each the minimum average total cost.
QUESTION 6 A Lemer index of 0 suggests O perfect competition. O oligopoly O monopolistic competition. O monopoly
Use the chart to answer the following question. Types of Market Structures One seller controls an industry. Few large sellers dominate an industry. Many sellers offer differentiated products. II III IV All sellers produce an identical product. Which definition MOST LIKELY represents monopolistic competition? O A II о в. Ш O C. I O D. IV & b
es Mailings Review View Help a v v Po E-E-FEAT 也。 Paragraph rrice and cost Jaollars per uni 80 60 40 20 ity: Investigate V D 0 20 40 60 80 100 Quantity (units per week) 27) Refer to Figure 13.2.2. To maximize economic profit, this firm in monopolistic competition charges a price of ? 28) Refer to Figure 13.2.2. To maximize economic profit, this firm in monopolistic competition produces an output of? 29) Refer to Figure 13.2.2. This firm in monopolistic competition A) is incurring an economic loss. B) is in long-run equilibrium. C) is making an economic profit. D) must raise its price to maximize economic profit. E) will make more economic profit in the long run. (DELL) O O J MR MC Normal ATC No Spacing Styles Heading 1