For a monopolisticallycompetitive firm in long-runequilibrium, Question 50options: the demand curve mustintersect the average total costcurve at the ATC curve minimum.the demand curve must betangent to the average total costcurve at the ATC curve minimum.at the profit-maximizingquantity, the demand curve mustintersect the average total costcurve. at the profit - maximizingquantity, the demand curve mustbe tangent to the average totalcost curve.

The right response is: Considering the facts given and the features of long-run equilibrium in…

Answered: For a monopolistically competitive firm…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price-discriminating firm Cho owns a plot of land in the desert that isn’t worth much. One day, a giant meteor falls on her property. The event attracts scientists and tourists, and Cho decides to sell nontransferable admission tickets to the meteor crater to both types of visitors: scientists (Market A) and tourists (Market B). The following graphs show demand (D) curves and marginal revenue (MR) curves for the two markets. Cho’s marginal cost of providing admission tickets is zero. I hope you can see a clear picture.
This profit-maximizing firm will produce Blank 1 units. What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.)
Firms under monopolistic competition earn zero profit because a) There is not enough demand. b) There is free entry and exit. c) Each firm faces a downward sloping demand curve. d) In equilibrium, marginal revenue equals marginal cost
Suppose the monopolistically competitive firm is charging a price equal to average total cost. The the monopolistically competitive firm should Question 4 options: a) increase its output b) decrease its output c) is operating in the long run d) can expect new firms to enter
Compare graphically welfare implications of the long run equilibrium of a monopolistically competitive industry, monopoly and perfectly competitive industry.
According to Mankiw, the two characteristics perfect competition, monopolistic competition, and monopoly have in common are Question 10 options: a) quantity produced is where MR = MC ; could earn economic profit in the long run b) quantity produced is where MR = MC; cannot earn economic profit in the long run c) Quantity produced is where MR < MC ; could earn economic profit in the long run d) Quantity produced is where MR > MC; cannot earn economic profit in the long run
According to Mankiw, the two characteristics perfect competition, monopolistic competition, and monopoly have in common are Question 10 options: a) quantity produced is where MR = MC ; could earn economic profit in the long run b) quantity produced is where MR = MC; cannot earn economic profit in the long run c) Quantity produced is where MR < MC ; could earn economic profit in the long run d) Quantity produced is where MR > MC; cannot earn economic profit in the long run
Le Jouet is a French firm, and it is the only seller of toy trains in France and Russia. Suppose that when the price of toy trains increases, Russian children more readily replace them with toy airplanes than French children. Thus, the demand for toy trains in Russia is more elastic than in France. The following graphs show the demand curves for toy trains in France (Dr) and Russia (DR) and marginal revenue curves in France (MRF) and Russia (MRR). Le Jouet's marginal cost of production (MC), depicted as the grey horizontal line in both graphs, is $12, and the resale of toy trains from Russia to France is prohibited. Assume there are no fixed costs in production, so marginal cost equals average total cost (ATC). PRICE (Dollars per toy train) 40 36 32 28 Total 24 20 16 12 8 4 0 Country France Russia France MR Price (Dollars per toy train) 20 20 2 4 6 8 10 12 14 16 18 20 QUANTITY (Millions of toy trains) N/A O True MC-ATC OF O False N/A (?) Single Price Quantity Sold (Millions of toy…
A shoe store in a monopolistically competitive market has a demand curve for their shoes given by P = 81-0.5Q. The variable costs of producing a shoe are given by the equation VC = Q2 + 3Q and so the marginal costs are MC = 20 +3. a) What is the shoe store's profit - maximizing output and price? If the shoe store is in a long-run equilibrium, what must its fixed costs be?
The diagram at right shows the structure of cost and demand facing a monopolistically competitive firm in the short run. The profit-maximizing output level is units of output. (Enter your response as an integer.) The profit-maximizing price is $. (Enter your response as an integer.) Total revenue is $ (Enter your response as an integer.) Total cost is $. (Enter your response as an integer.) Total profit or loss is $ (Enter your response as an integer and include a negative sign where appropriate.) In the long run, firms will OA. exit, shifting the demand facing the remaining firms to the right until the firms earn an economic profit. B. exit, shifting the demand facing the remaining firms to the right until the firms earn a normal profit. OC. enter, shifting the demand facing the remaining firms to the left until the firms earn a normal profit. OD. enter, shifting the demand facing the remaining firms to the left until the firms earn an economic profit. $14 $13 $12 $11 $7 MR 15 20…
Answer choices are first blank: negative, positive, zero second blank: an equal number of, fewer, more
Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by: q = 60 – (1/2)p, where q is quantity sold per week. The firm's marginal cost curve is given by: %3D MC = 60. How much will the firm produce in the %3D short run? What price will it charge?

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