If this graph represents the market for Sonoran hotdogs in Tucson , which statement is true? AThe market is monopolistically competitive and at its long run equilibriumBThe market is a monopoly and firms are earning positive profitsCThe market is an oligopoly and firms are earning positive profitsDThe market is perfectly competitive and firms are suffering lossesEThe market is monopolistically competitive and not at its long run equilibrium Price and costs (dollars per unit)432101020MR30DMC ATC40 5060Quantity (units per day)

When marginal revenue lies below the demand curve, it implies that the seller has to lower the price…

Answered: A The market is monopolistically…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The accompanying graph depicts average total cost (ATC) marginal cost (MC), marginal revenue (M), and demand (D) 50 facing a monopolistically competitive firm MC 45 Place point A at the firm's profit maximizing price and quantity 40 35 What is the firm's total cost? ATC 30 25 total cost: 20 15 What is the firm's total revenue? 10 5 total revenue: $ MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity What is the firm's total profit? profit: $ Price and Cost ($)
List three key attributes of monopolistic competition.Draw and explain a diagram to show the short-run equilibrium in a monopolistically competitive market. How does this equilibrium differ from that in a perfectly competitive market
What gives firms market power in an industry characterized by Monopolistic Competition?
The following graph shows cost curves for a monopolistically competitive firm. Place the black point (cross symbol) on the graph to indicate the short-run profit-maximizing price and quantity for a monopolistically competitive firm. 500 450 PRICE PER UNIT (Dollars) 400 350 300 250 200 150 100 50 50 MC 0 0 50 100 150 LRAC MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) + Monopolistically Competitive Outcome The following graph shows cost curves for a perfectly competitive firm. Place the grey point (star symbol) on the graph to indicate the point where a perfectly competitive firm would produce. ? 500 450 400 350 300 * Perfectly Competitive Outcome
In the long run, the positive economic profits earned by the monopolistic competitor will attract a response either from existing firms in the industry or firms outside. As those firms capture the original firm’s profit, what will happen to the original firm’s profit-maximizing price and output levels? Show on a graph
How does a monopolistic market during entry and exit affect economic profit and economic loss? Show diagram.
Which type of a firm, monopolistically competitive or a monopoly, will have a greater incentive to advertise its product? Please give an explanation.
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In long run equilibrium, economic profits tend to zero in a perfectly competitive market and also in a monopolistically competitive market. This is true because both market structures share a crucial characteristic. What is the characteristic that causes economic profits to get pushed towards zero in both perfect competition and monopolistic competition?
Which of the markets is the best example of monopolistic competition? the market for sugar snap peas the market for cola the fast food industry O your town's utilities distrubutor(s) of electricity and water 46°F
WHAT IS THE DIFFERENCE BETWEEN MONOPOLY AND OLIGOPOLY? PROVIDE EXAMPLES. WHAT IS A MONOPOLISTIC COMPETITION? PROVIDE EXAMPLE. WHAT IS A PERFECT COMPETITION? PROVIDE EXAMPLE SITUATIONS
what market inefficiencies derive from monopolies and monopolistic competition?

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A	The market is monopolistically competitive and at its long run equilibrium
B	The market is a monopoly and firms are earning positive profits
C	The market is an oligopoly and firms are earning positive profits
D	The market is perfectly competitive and firms are suffering losses
E	The market is monopolistically competitive and not at its long run equilibrium