Demand Demand QUANTITY (Bikes) Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply. Firms can earn positive profit in the long run. Firms earn zero profit in the long run. O Price equals average total cost in the long run. Firms are not price takers. PRICE (Dollars per bike)
Demand Demand QUANTITY (Bikes) Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply. Firms can earn positive profit in the long run. Firms earn zero profit in the long run. O Price equals average total cost in the long run. Firms are not price takers. PRICE (Dollars per bike)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Please help solve all parts of equation
![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.
500
450
Monopolistically Competitive Outcome
400
350
300
Profit or Loss
ATC
250
200
150
MC
100
50
MR
Demand
0 50
100
150
200
250
300
350
400
450
500
QUANTITY (Bikes)
Given the profit-maximizing choice of output and price, the shop is making
profit, which means there are
shops in the industry relative to the long-run equilibrium.
PRICE (Dollars per bike)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae4d90cc-e37f-4488-9904-9bf10b89cceb%2Fbea79648-7edd-48e0-b093-ffc983be3820%2Fdszlbla_processed.png&w=3840&q=75)
Transcribed Image Text: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.
500
450
Monopolistically Competitive Outcome
400
350
300
Profit or Loss
ATC
250
200
150
MC
100
50
MR
Demand
0 50
100
150
200
250
300
350
400
450
500
QUANTITY (Bikes)
Given the profit-maximizing choice of output and price, the shop is making
profit, which means there are
shops in the industry relative to the long-run equilibrium.
PRICE (Dollars per bike)
![Demand
Demand
QUANTITY (Bikes)
Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.
Firms can earn positive profit in the long run.
Firms earn zero profit in the long run.
Price equals average total cost in the long run.
Firms are not price takers.
PRICE (Dollars per bike)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fae4d90cc-e37f-4488-9904-9bf10b89cceb%2Fbea79648-7edd-48e0-b093-ffc983be3820%2F1ie1qy_processed.png&w=3840&q=75)
Transcribed Image Text:Demand
Demand
QUANTITY (Bikes)
Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.
Firms can earn positive profit in the long run.
Firms earn zero profit in the long run.
Price equals average total cost in the long run.
Firms are not price takers.
PRICE (Dollars per bike)
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