a monopolistically competitive firm maximizes profits when itproduces the quantity at which marginal cost equals the market priceO produces the quantity at which marginal cost equals marginal revenueand uses the demand curve to determine the market priceproduces the quantity at which marginal cost equals marginal revenueand sets the price equal to the marginal costproduces the quantity at which marginal cost equals marginal revenueand sets the price equal to the marginal revenueQuestion 11a monopolistic competitor is in long run equilibrium wheneconomic profits are equal to zero and the average total cost curve istangent to the demand curveeconomic profits are equal to zero and the marginal cost curve istangent to the demand curveeconomic profits are greater than zero and the average total cost curveis tangent to the demand curveO economic profits are greater than zero and the marginal cost curve istangent to the demand curveQuestion 12compared to a perfectly competitive firm, in a long run themonopolistically competitive firm will havea lower pricea lower average costa horizontal demand functiona lower rate of output

Monopolistic competition is a kind of market structure in which there are numerous sellers offering…

Answered: a monopolistically competitive firm…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the price is greater than Actual total cost, does the monopolistic firm makes a profit, loss, or break-even?
Exercise A.4. A company operating in a market of monopolistic competition has an inverse demand curve for its product: P=315-3q, where q is the number of units produced of the good and P its price. The total cost of production of this company is given by: TC(q)=q²+75q+4000. a) To maximize profits, how many units of the good should you sell? b) What price should I charge? (c) What benefits would it reap? (d) Given the above information, how much would you have to reduce fixed costs for longterm equilibrium to occur? Represent graphically
Is monopolistic competition efficient and socially desirable for the welfare of the economy
if a monopolistic firm takes over a perfectly competaive market we would expect to see market price of the goof to fall because demand is perfectly eleastic rise and quantity is sold fall as the monopolist tries to increase sales rise and the quantity sold to increase
What does it mean in a monopolistically competitive market, when the rule for maximizing profit is to set MR = MC? Group of answer choices Price is equal to marginal revenue. Price is equal to marginal cost. Price is lower than marginal revenue. Price is higher than marginal revenue.
Would a company selling in a monopolistic competitive market potentially produce a product with a negative marginal revenue?
A monopolistic firm operates in two separate markets, Market A and Market B. The firm can sell its product at different prices in each market due to different demand conditions. In Market A, the firm faces a demand curve given by Q_A = 100 - P_A, where Q_A is the quantity demanded in Market A and P_A is the price charged in Market A. In Market B, the demand curve is Q_B = 80 - 2P_B, where Q_B is the quantity demanded in Market B and P_B is the price charged in Market B. The firm has a total production capacity of 120 units. What price should the firm charge in each market to maximize its total revenue?
Suppose that a company operates in the monopolistically competitive market for denim jackets. 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. ? 100 PRICE (Dollars per jacket) 8 20 60 50 X ATC 20 MC MR 2 2 2 2 10 0 0 30 40 50 60 70 QUANTITY (Thousands of jackets) 10 20 80 Demand 90 100 Mon Comp Outcome Min Unit Cost
Suppose that a firm produces wooden train engines in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve: 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.
A monopolistically competitive firm faces the following demand curve for its product: Price ($) 10 6. 8. 17. 6. 3 2 1 Quantity 4 6. 8. 10 12 14 16 18 20 Refer to the Table. The firm has total fixed costs of $20 and a constant marginal cost of $9 per unit. How many units will the firm produce? "Don't leave spaces before, after or in between your number.
how to calculate equilibrium price and quantity for a monopolistic market
A decrease in the number of competitors in a monopolistically competitive market causes an increase in the price elasticity of demand for the output of each of the remaining firms in the market.

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