**Table 16-7: A Monopolistically Competitive Firm's Demand Schedule**A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20.| Price | Quantity ||-------|----------|| $30 | 1 || $26 | 2 || $22 | 3 || $18 | 4 || $14 | 5 || $10 | 6 || $6 | 7 |**Question:**Refer to Table 16-7. If the firm produces its profit-maximizing level of output and there is a constant marginal cost of $7 per unit, which of the following is correct?- a. This firm is operating at its efficient scale.- b. This firm should expect its demand curve to shift to the left.- c. Firms will leave the market and profits for firms that remain in the market will rise.- d. This firm is in a long-run equilibrium.**Options to Proceed:**- Save & Continue- Continue without saving*Note: Analyze the relationship between price and quantity to determine the profit-maximizing output, considering the given marginal cost and total fixed costs.*

the following table calculates the total and marginal revenue of the firm from its demand schedule:…

A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20. Price Quantity $30 $26 $22 $1s $14 $10 $6 Refer to Table 16-7. If the firm produces its profit-maximizing level of output and there is a constant marginal cost of $7 per unit, which of the following is correct? Oa. This firm is operating at its efficient scale. Ob. This firm should expect its demand curve to shift to the left. OC. Firms will leave the market and profits for firms that remain in the market will rise. Od. This firm is in a long-run equilibrium.

A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20. Price Quantity $30 $26 $22 $1s $14 $10 $6 Refer to Table 16-7. If the firm produces its profit-maximizing level of output and there is a constant marginal cost of $7 per unit, which of the following is correct? Oa. This firm is operating at its efficient scale. Ob. This firm should expect its demand curve to shift to the left. OC. Firms will leave the market and profits for firms that remain in the market will rise. Od. This firm is in a long-run equilibrium.

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

PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 + 0 MO 50 ATC MR Demand 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) ++ Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, the shop is earning shops in the industry than in long-run equilibrium. Profit or Loss profit, which means there are
WataDine is one of a city’s many restaurants that serve lunch and dinner in a monopolistically competitive market. Assume WataDine, as a typical restaurant in the city, is currently producing the profit-maximizing output level, and earns positive short-run economic profit. (a) How is monopolistic competition similar to each of the following market structures? (i) Perfect competition (ii) Monopoly (b) WataDine is currently earning short-run economic profits. Draw a correctly labeled graph for WataDine in short-run equilibrium and show each of the following. (i) The profit-maximizing quantity, labeled QM (ii) The profit-maximizing price, labeled PM (c) Given that WataDine is currently earning short-run economic profits, what will happen to each of the following in the long run? (i) WataDine's economic profit. Explain. (ii) WataDine's demand curve for its restaurant meals. (d) Assume WataDine is in long-run equilibrium. (i) Is WataDine taking advantage of its economies of scale? Explain.…
This profit-maximizing firm will produce Blank 1 units. What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.)
In the long-run equilibrium of a monopolistically competitive industry, the zero-profit point is to the leftof minimum average cost. EXPLAIN. WHY?
A perfectly competitive firm is onsidered to be more generous in terms of price and quantity of output in comparison to firm belonged to monopoly and monopolistic markets. C. If firms incurring loss in this market begin to exit the market, what will happen to the market equilibrium? Demonstrate your answer using a simplified graph. d. The firm wishes to supply output more than the quantity determined under the equilibrium condition, is it worth to pursue?
A firm in a monopolistically competitive market has a monopoly power because: O There are very few other sellers in the market. There are many firms selling similar products. The firm is not concerned with entry of new firms. The firm's product is differentiated. ◄ Previous MAY 4 Next Not saved Submit tv
PTICE and COST $40 30 23 20 10 MC ATC ATC MR AR=D 150 200 Quantity per day 0:13 Question 11 (10 points) (Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC' Before the innovation reduced the cost, the firm's maximum economic profit was: $0. $30. $750. $4,500.
Q8. The similarity between Monopoly and Monopolistic competition is vow a) Free entry and exit of firms marginal revenue b) Quality of product is same c) Price charged exceeds d) Demand curves are perfectly elastic. Q9. Which of the following conditions is acceptable as the last stage of production for a P.C. firm? a) Size of loss equals to total fixed cost b) Size of loss equals to total variable cost c) Size of loss equals to total cost d) Firm earns zero economic profit Q10 The monopolistic competitive firm produces product a) That is slightly differentiated b) That is significantly different from each other c) That is considerably different from each other d) That is of lower quality than the P.C. firm
5- 3- 1- 20 40 60 80 100 Q MR Using the above graph, This profit-maximizing firm will produce Blank 1 units. -MC What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) Blank 1 Blank 2 Blank 3 Blank 4 Add your answer Add your answer Add your answer Add your answer
Answer fast with their explanation...
Study Tools ins ess Tips ss Tips PRICE (Dellars per engine) 288 RSS #RR 100 50 30 20 10 MO 0 0 10 ATC MR Demand 20 30 40 50 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unt Cost Decause this market is a monopolistically competitive market, you can tell that it is in long-run equilibrum 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
Price (dollars per unit) 100 90 8.5 80 70 55 40 30 20 10 0 MR₂ 20 40 60 80 100 140 $100; 200 $90; 220 $80; 200 $85; 250 MC ATC •D₁ LRAC MR₁ 200 220 250 Quantity (units per week) Using FIGURE #6, assume this firm faces demand curve D₁. If this firm in monopolistic competition is maximizing profit they will charge a price of produce a quantity of ____ units. and