Firm will exit a monopolistically competitive market if: Omarginal revenue is greater than marginal cost. O price is greater than average total cost. O price is greater than marginal cost. O price is less than average total cost. O marginal revenue is greater than average total cost.
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- A monopolistically competitive firm maximizes profit in the short run by producing where Oprice is less than marginal revenue. O price is less than marginal cost. O price is greater than marginal cost. O price is less than average revenue.Quantity sold is lowest in a(n) market. O monopolistic competitive O oligopolistic O competitive O monopolisticCompared with a perfectly competitive market, a monopolistically competitive firm's demand curve is O downward sloping. ohorizontal. O less elastic. Omore clastic
- $100 $90 MC АТС $80 $70 $60 $50 $40 $30 Demand = P $20 $10 MR $0 10 20 30 40 50 60 Output (Q) The firm shown in the diagram above is in long run equilibrium in a monopolistically competitive market. According to the graph, the Markup is Select one: а. $50 O b. $30 O c. $40 O d. $60A monopolistically competitive firm has a total cost curve represented by TC = 250+ 3Q + Q² and a marginal cost represented by MC = 3 + 2Q. The firm faces the demand curve P = 99 - 2Q. What do we expect to happen in the long run? O Firms will exit the industry, but if this firm remains its profits will increase. O The firm will earn an economic profit in the long run. O Additional firms will enter the industry and this firm's profit will decrease. O This firm will sell its product at marginal cost. MacBook A esc 800 F1 F2 F3 F4 2$ 4 W R T Y ock G %24 2A monopolistically competitive firm produces where while a perfectly competitive firm produces where A. price is greater than marginal cost; price is equal to marginal cost B. price is less than marginal cost; price is equal to marginal cost OC. price is greater than marginal cost; price is less than marginal cost OD. price is equal to marginal cost; price is greater than marginal cost
- The figure above shows a monopolistically competitive firm in the short run. During the transition to the long run, the demand and marginal revenue curves will shift and both become 5 MC 4 ATC 1 MR 20 40 60 80 100 120 Quantity (units per day) O A. leftward; more elastic OB. leftward; less elastic OC. rightward; more elastic OD. rightward; less elastic 3. 2. Price and costs (dollars per unit)4. Maria manages a bakery that specializes in ciabatta bread (monopolistically competitive firm), and she has the following information on the bakery’s demand and costs: Ciabatta Bread Sold per Hour (Q) 0 1 2 3 4 5 6 7 8 Price (P) $6.00 5.50 5.00 4.50 4.00 3.50 3.00 2.50 2.00 Total Cost (TC) $3.00 7.00 10.00 12.50 14.50 16.00 17.00 18.50 21.00 a. To maximize profit, how many loaves of ciabatta bread should Maria sell per hour, what price should she charge, and how much profit will she make? b. What is the marginal revenue Maria receives from selling the profit-maximizing quantity of ciabatta bread? What is the marginal cost of producing the profit- maximizing quantity of ciabatta bread?$19 16 30 13 10 O 100 Multiple Choice 160180 210 Quantity loss of $320. profit of $480. MC Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm will realize an economic profit of $280. profit of $600. MR ATC D
- The profit-maximizing firm illustrated in Figure operates in a monopolistically competitive industry. Which of the following best explains what happens in the long run? Price 4 O MC ATC AVC D MR QuantityPRICE (Dollars per engine) 100 90 80 70 60 40 30 & 2 20 10 MO D 0 10 ATC MR Demand 20 30 40 50 60 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimumPlace 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. PRICE (Dolars per kit) 100 8 80 70 50 8 10 0 MO 10 ATC 20 30 O True O False MR 60 70 QUANTITY (Thousands of kits) Demand 40 80 90 100 Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is True or False: This indicates that there is excess capacity in the market for kits. at the optimal quantity for each the minimum average total cost.
