Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answerthe following questions.Price and costsBA0FGMCATCHE DemandMRQuantitySuppose the firm achieves productive efficiency.a. The resulting price-quantity combination would be illustrated by point (Click to select) ✰b. At this point, the firm experiencesa short-run loss.a normal profit.an economic profit.

Answered: Image /qna-images/answer/5cf0c12e-d39e-4917-985d-69e1063824bc.jpg

Answered: Consider the diagram below depicting…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following statements about price discrimination is FALSE? Question 17Answer a. Price discrimination is inconsistent with perfect competition b. 1st degree price discrimination always results in an efficient outcome c. None of the statements are false d. Price discrimination typically improves efficiency e. 3rd degree price discrimination always results in an efficient outcome
I just need help on c and d
Refer to the figure below. The price-discriminating firm earns a higher profit by S/Q1 MR D₁-AR₁ MR₁ D₂-AR AC-MC Quantity Select one: a. charging a lower price as time goes by. b. charging a lower price to the consumers who acquire the good first. c. charging a higher price as time goes by. d. charging an average of a high price and a low price over time.
Think about the following categories: number of firms, type of product, pricing, market knowledge, entry and exit in the market, and the elasticity of the product. Describe any changes in these categories in the latter half of the 20th century.
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.
1. If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good? Explain. 2. What is the deadweight loss of monopoly? Show the deadweight loss when the monopolist can perfectly price discriminate. 3. What is the point of long run equilibrium of a monopolistically competitive firm. How does it compare to a competitive firm.
The demand for money is given by Md = $Y (0.3-i), where $Y = 120 and the supply of money is $30. What is the equilibrium interest rate? If the central bank wants to decrease i by 2%, at what level should it set the supply of money?
In monopolistic competition, a firm has some ability to affect the price for its product because of Select one a. economic profits. b.easy entry and exit. C. many competitors product differentlation.
Suppose new firms enter a monopolistically competitive market. What is the effect of new firms entering the market from the perspective of the firms that were already in the market? Question 11Answer a. Positive supply shock b. Positive demand shock c. No effect d. Negative supply shock e. Negative demand shock
3. A monopolistically competitive firm sells boots and has the following in the short run: Demand: P = 80 – 0.5Q %3D MR: MR = 80 – Q TC = 1.5Q? + 40 1.5Q + (40/Q) TC: АТC: MC: MC = 3Q %3D Find the firm's profit maximizing quantity and price. Find the firm's profit or loss. Show some work here: Quantity = Price = Profit or Loss = (circle one, and write the number)
Markbury is a monopoly selling widgets. If the government imposes a $100 000 tax on every monopolistic firm in the country, then Select one: a. Markbury’s annual profit will no change since its marginal cost is unchanged b. Markbury’s annual profit will fall by $100 000 since its marginal cost would rise by $100 000 c. Markbury’s annual profit will fall by less than $100 000 since its marginal cost would rise by less than $100 000 d. Markbury’s annual profit will fall by $100 000 but its marginal cost will not change e. The impact on Markbury’s profit is difficult ascertain, without more information
Explain: Profit Max with MC & MR: Different Degrees of Price Discrimination: Nash Equilibrium vs. Dominant Strategy: How are MC markets like PC markets and how are they like monopolies?

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