he graph below is for Chic and Sharpe Ltd., a firm in the women’s garment industry, which is monopolistically competitive. a. Label the four curves in the graph above. Double-click on each of the question marks on the graph and select the correct label. b. What is the profit-maximizing output and price? Output: units Price: $ c. At the output in (b), what are the amounts of Total cost: $ ; Total revenue: $ Economic profit: $
The graph below is for Chic and Sharpe Ltd., a firm in the women’s garment industry, which is
a. Label the four curves in the graph above. Double-click on each of the question marks on the graph and select the correct label.
b. What is the profit-maximizing output and
Output: units
Price: $
c. At the output in (b), what are the amounts of
Total cost: $ ; Total revenue: $
Economic profit: $
d. How much excess capacity exists?
units
e. What will the presence of economic profits do?
i) Result in the entry of new firms into the industry ii) Have no effect on the number of firms in the industry iii) Result in the exit of firms from the industry
f. As a result of your answer to (e), the
i) shift to the right ii) shift to the left iii) not shift
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