C. Assuming identical long run costs as in the diagram above, compare graphically the prices and outputs that would result in the long run under pure competition and under monopolistic competition. the reference paint corresponding to the long run price and output for a monopolistically competitive for is.....? **Chapter 13**a. Compare the elasticity of a monopolistic competitor's demand with that of a pure competitor and a pure monopolist.A [Click to select] demand curve is less elastic than a [Click to select], which is less elastic than a [Click to select].b. Using the diagram below, identify the demand curve for each of the following:[Note: The diagram is not visible in the image provided. Further description or explanation is required to analyze the demand curves for each category.] ### Market Structure and Demand Graph AnalysisThis graph illustrates the interaction of market structure and demand through several economic curves: Marginal Cost (MC), Average Total Cost (ATC), and three demand curves labeled $D_1$, $D_2$, and $D_3$.#### Key Components:1. **Axes:** - **Vertical Axis (Price):** Represents the price level of goods. - **Horizontal Axis (Quantity):** Represents the quantity of goods.2. **Curves:** - **MC (Marginal Cost):** This upward-sloping curve illustrates how the cost to produce an additional unit increases as output increases. - **ATC (Average Total Cost):** The U-shaped curve indicates the total cost per unit of output, combining fixed and variable costs. - **Demand Curves $D_1$, $D_2$, $D_3$:** These downward-sloping lines represent different levels of demand at various price points. $D_1$ is the highest demand curve, followed by $D_2$ and $D_3$.3. **Equilibrium Points:** - **Point A:** Represents the intersection of the MC, ATC, and one of the demand curves, indicating the equilibrium quantity and price under this specific market structure. - **Point B:** Located on one of the demand curves, showing an alternative price and quantity scenario.#### Analysis:- **Market Equilibrium:** The intersection at Point A is crucial as it illustrates the equilibrium where the firm maximizes profit by producing where MC equals demand.- **Demand Variability:** The three demand curves ($D_1$, $D_2$, $D_3$) indicate the potential shift in market demand, influencing equilibrium outcomes.- **Cost Structure:** The MC and ATC curves help analyze the cost efficiency and pricing strategies of a firm in different market scenarios.Understanding these components allows for a comprehensive assessment of how price and quantity are determined in a given market structure, considering both supply costs and consumer demand.

(a) A pure monopolist's demand curve is less elastic than a monopolistic competitor's which is less…

a. Compare the elasticity of a monopolistic competitor's demand with that of a pure competitor and a pure monopolist. which is less elastic than a demand curve is less elastic than a (Click to select) A (Click to select) (Click to select)

a. Compare the elasticity of a monopolistic competitor's demand with that of a pure competitor and a pure monopolist. which is less elastic than a demand curve is less elastic than a (Click to select) A (Click to select) (Click to select)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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#1 please
Consider the model with monopolistic competition and full symmetry between the firms (internal returns to scale) in a single integrated market. Now assume that a new technology becomes available that reduces a firm's marginal cost of production by a given amount but requires a larger fixed-cost investment to implement. Suppose that all fırms adopt the new technology. How does this impact the equilibrium number of varieties and the equilibrium price? Show your work. Edit View Insert Format Tools Table
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.
A monopolistically competitive firm in a long-run equilibrium will likely produce which of the following? A. a technically efficient amount of outputB. less than a technically efficient amount of output and less than an allocatively efficient amount of outputC. more than a technically efficient amount of output but less than an allocatively efficient amount of outputD. an allocatively efficient amount of production.E. less than a technically efficient amount of output and more than an allocatively efficient
#2 please
Answering all questions compulsory...
(a) Consider a monopoly trading firm that dominates a particular market. Describe the factors that contribute to the monopoly's ability to control prices and generate profits and as such discuss its short run and long run profit situation. Use relevant diagrams to support your answer.(b) Suppose more firms are interested in joining the market and over the years, the market structure is characterised by monopolistic competition. Discuss the implication on the firm's short-run and long run profits. Use relevant diagrams to support your answer.
The profit-maximizing/loss-minimizing level of output is determined where MR=MC for: all four industry types. pure competition and monopolistic competition. only pure competition. only regulated monopoly. Question 40 Graph A Graph B Graph C Graph D AR AR AR AR-MR WR AMR `MR Referencing the above diagram, Graphs A, B, C, and D, respectively, represent which of the following market models? Monopolistic competition, monopoly, oligopoly, and pure competition. Pure competition, oligopoly, monopoly, and monopolistic competition. O Oligopoly, pure competition, monopolistic competition, and monopoly. Oligopoly, monopoly, pure competition, and monopolistic competition.
1) With monopoly, we only specify long run cost functions because we are not as interested in the shut down decision and we don't have firm entry to compete away profit. Still, to make the math work, our monopolist cost functions often have fixed costs. Let's solve the following question: EagleSOFT has developed a computer program that will send UNT sports teams scores directly to purchaser's phones as text messages. Demand and total cost for the software company is described by the following equations: Demand: P = 70 -0.05Q, Cost: C = 4000 + - 10Q. a) What is the firm's level of output, the price they should charge, and their profit? b) What is the demand elasticity and Lerner index at the level of output?
1) Are monopolists guaranteed of making economic profits?. pleas explain.2) Explain the long run equilibrium situation for a monopolistically competitive industry. Give two examples of industries that fit under this category.
The zero profit condition is assumed for the long run equilibrium under monopolistic competition all things equal. So explain why it is possible for firms under monopolistic competition to escape the zero profit conditions while it is much less likely under perfect competition?