antastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.   Given the profit-maximizing choice of output and price, the shop is making(zero,positive,neative)    profit, which means there are(an equal number of, fewer,more)    shops in the industry relative to the long-run equilibrium.   Now consider the long run in which bike manufacturers are free to enter and exit the market.   Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply. Firms are not price takers.   Price is above marginal cost.   Firms earn zero profit in the long run.   Price equals average total cost in the long run.

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Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).
Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.
 
Given the profit-maximizing choice of output and price, the shop is making(zero,positive,neative)    profit, which means there are(an equal number of, fewer,more)    shops in the industry relative to the long-run equilibrium.
 
Now consider the long run in which bike manufacturers are free to enter and exit the market.
 
Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.
Firms are not price takers.
 
Price is above marginal cost.
 
Firms earn zero profit in the long run.
 
Price equals average total cost in the long run.
 
 
 
 
 
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Transcribed Image Text:b My Questions | bartleby * MindTap - Cengage Learning X C Mays And McCovey Are Beer x O BlackBox Stocks - The Most Black Box Stocks + A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090892& E Apps M Gmail W Maps A clickserve.dartsearc. E Reading list YouTube « * CENGAGEMINDTAP Q Search this course Love v A My Home Homework (Ch 16) Courses (? O Catalog and Study Tools A-Z EE Rental Options P College Success Tips Demand Career Success Tips ? Help O Give Feedback Demand bonge QUANTITY (Bikes) 10:30 AM P Type here to search L 76% 62°F O O D 1) 12/3/2021 PRICE (Dollars per bike) x ...
b My Questions | bartleby
* MindTap - Cengage Learning X
C Mays And McCovey Are Beer x
O BlackBox Stocks - The Most
Black Box Stocks
x +
X
A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090892&
E Apps M Gmail
YouTube A Maps A clickserve.dartsearc.
E Reading list
«
* CENGAGE MINDTAP
Q Search this course
Love v
A My Home
Homework (Ch 16)
Courses
O Catalog and Study Tools
A-Z
EE Rental Options
500
450
P College Success Tips
Monopolistically Competitive Outcome
400
Career Success Tips
350
? Help
Profit or Loss
300
ATC
O Give Feedback
250
200
150
100
bongo
50
MC
MR
Demand
+
50
100
150
200 250
300
350
400
450
500
QUANTITY (Bikes)
Given the profit-maximizina choice of output and price, the shon is makina
profit, which means there are
10:28 AM
P Type here to search
L
74%
62°F
O O D 1)
12/3/2021
PRICE (Dollars per bike)
x ...
Transcribed Image Text:b My Questions | bartleby * MindTap - Cengage Learning X C Mays And McCovey Are Beer x O BlackBox Stocks - The Most Black Box Stocks x + X A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090892& E Apps M Gmail YouTube A Maps A clickserve.dartsearc. E Reading list « * CENGAGE MINDTAP Q Search this course Love v A My Home Homework (Ch 16) Courses O Catalog and Study Tools A-Z EE Rental Options 500 450 P College Success Tips Monopolistically Competitive Outcome 400 Career Success Tips 350 ? Help Profit or Loss 300 ATC O Give Feedback 250 200 150 100 bongo 50 MC MR Demand + 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) Given the profit-maximizina choice of output and price, the shon is makina profit, which means there are 10:28 AM P Type here to search L 74% 62°F O O D 1) 12/3/2021 PRICE (Dollars per bike) x ...
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