Compare the average cost and the output in the long-run equilibrium for a monopolistically competitive firm and a perfectly competitive firm bycompleting the following table.Under...Monopolistic CompetitionPerfect CompetitionAverage CostOutput(Dollars per racquet) (Thousands of racquets per month)Because this market is a monopolistically competitive market, the firm's average cost in long-run equilibrium isaverage cost it would achieve as a firm operating in a perfectly competitive market.The output of a monopolistically competitive firm in long-run equilibrium isdifference in output is known as thethe long-runthe output of a perfectly competitive firm. Thisof a monopolistically competitive firm. 4. Comparing monopolistic competition and perfect competitionSuppose that a firm produces tennis racquets in a monopolistically competitive market. The following graph shows its demand curve (D), marginalrevenue curve (MR), marginal cost curve (MC), and long-run average cost curve (LRAC). Assume that all firms in the industry face the same coststructure.Place the tan point (dash symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next,place the purple point (diamond symbol) to indicate the point at which this firm would produce in the long run if it operated in a perfectly competitivemarket.Note: Dashed drop lines will automatically extend to both axes.PRICE, COSTS, AND REVENUE (Dollars per racquet)100908070605040302010 MC00LRACMRD10 20 30 40 5060 70 80QUANTITY (Thousands of racquets per month)90100Monopolistic Competition OutcomePerfect Competition Outcome?

Compare the average cost and the output in the long-run equilibrium for a monopolistically competitive firm and a perfectly competitive f completing the following table. Under... Monopolistic Competition Perfect Competition Average Cost (Dollars per racquet) Output (Thousands of racquets per month) Because this market is a monopolistically competitive market, the firm's average cost in long-run equilibrium is average cost it would achieve as a firm operating in a perfectly competitive market. the lc

Compare the average cost and the output in the long-run equilibrium for a monopolistically competitive firm and a perfectly competitive f completing the following table. Under... Monopolistic Competition Perfect Competition Average Cost (Dollars per racquet) Output (Thousands of racquets per month) Because this market is a monopolistically competitive market, the firm's average cost in long-run equilibrium is average cost it would achieve as a firm operating in a perfectly competitive market. the lc

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

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 ($)
Q. 2
hellp
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?
What are the characteristics of monopolistically competitive markets? If the price of the product in a monopolistically competitive market increases what happens to the number of individual firms in the market and to the level of profit in the long run? Fully explain your answer.
Answer all four questions! Is a monopolistically competitive firm productively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be productively inefficient. Is it allocatively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be allocatively inefficient.
Suppose the tattoo shop market in Richmond is monopolistically competitive. Consider the market from the perspective of one tattoo parlor, Roses & Thorns. Suppose there were positive economic profits in the market and an additional two tattoo parlors enter the market. What happens to the demand curve for Roses & Thorns tattoos shifts up shifts down stays the same
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.
Provide an example of an industry that is monopolistically competitive. Regarding average total cost at the profit maximizing output, what is the difference between perfect competition and monopolistic competition ?
Answering all questions compulsory...
Using only things found in an average home, please provide one example of something from each kind of market, and briefly explain why this thing is in that particular market. Try to be creative. You will need an example of something from a: Perfectly competitive market Imperfectly competitive market (monopolistically competition or oligopoly), and Monopoly market