Figure 16-2 This figure depicts a situation in a monopolistically competitive market. 100 PRICE 90 80 70 60 50 40 30 20 10 9. MR ATC Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY Refer to Figure 16-2. Assuming the firm is maximizing profit, this firm is operating a. in the short run and earning a positive economic profit. b. in the long run and incurring and economic loss. c. in the short run and breaking even. d. in the long run and earning a positive economic profit.

Figure 16-2 This figure depicts a situation in a monopolistically competitive market. 100 PRICE 90 80 70 60 50 40 30 20 10 9. MR ATC Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY Refer to Figure 16-2. Assuming the firm is maximizing profit, this firm is operating a. in the short run and earning a positive economic profit. b. in the long run and incurring and economic loss. c. in the short run and breaking even. d. in the long run and earning a positive economic profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1200 1100 1000 900 800 700 600 PRICE 500 400 300 200 100 MC Figure 16-3 Demand Refer to Figure 17-3. The firm in this figure is monopolistically competitive and maximizing profit. This firm a. is operating in the long run. b. is incurring a short-run loss. c. The answer cannot be determined from the information given. d. is earning a short-run economic profit. MR 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY