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. b My Questions | bartleby* MindTap - Cengage Learning XC Mays And McCovey Are Beer xO BlackBox Stocks - The MostBlack Box Stocks+A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090892&E Apps M GmailW Maps A clickserve.dartsearc.E Reading listYouTube«* CENGAGEMINDTAPQ Search this courseLove vA My HomeHomework (Ch 16)Courses(?O Catalog and Study ToolsA-ZEE Rental OptionsP College Success TipsDemandCareer Success Tips? HelpO Give FeedbackDemandbongeQUANTITY (Bikes)10:30 AMP Type here to searchL76%62°FO O D 1)12/3/2021PRICE (Dollars per bike)x ... b My Questions | bartleby* MindTap - Cengage Learning XC Mays And McCovey Are Beer xO BlackBox Stocks - The MostBlack Box Stocksx +XA ng.cengage.com/static/nb/ui/evo/index.html?deploymentld=59828118170010561930692029148&elSBN=9780357133606&snapshotld=2556323&id=1270090892&E Apps M GmailYouTube A Maps A clickserve.dartsearc.E Reading list«* CENGAGE MINDTAPQ Search this courseLove vA My HomeHomework (Ch 16)CoursesO Catalog and Study ToolsA-ZEE Rental Options500450P College Success TipsMonopolistically Competitive Outcome400Career Success Tips350? HelpProfit or Loss300ATCO Give Feedback250200150100bongo50MCMRDemand+50100150200 250300350400450500QUANTITY (Bikes)Given the profit-maximizina choice of output and price, the shon is makinaprofit, which means there are10:28 AMP Type here to searchL74%62°FO O D 1)12/3/2021PRICE (Dollars per bike)x ...

The short-run profit-maximizing point is achieved at point where MR = MC. At this point, the price…

Answered: antastique Bikes is a company that…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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.

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 ...

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