If the firms in a monopolistically competitive market are earning economic profits in the short run, would you expect them to continue doing so in the long run? They will be unable to earn economic profits in the long run O They will always be able to earn economic profits in the long run. O They can continue to do so in the long run if new entries cannot completely erase the differentiation in their product. O Monopolisitc companies cannot earn economic profits in the long run unless government regulations help them achieve their goal of economic profits.

If the firms in a monopolistically competitive market are earning economic profits in the short run, would you expect them to continue doing so in the long run? They will be unable to earn economic profits in the long run O They will always be able to earn economic profits in the long run. O They can continue to do so in the long run if new entries cannot completely erase the differentiation in their product. O Monopolisitc companies cannot earn economic profits in the long run unless government regulations help them achieve their goal of economic profits.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

9 When entry occurs in a monopolistically competitive industry, which of the following occurs? A The perceived demand curve for each firm shifts to the right. The perceived demand and marginal revenue curves for each firm shift to the right. The perceived demand and marginal revenue curves for each firm shift to the left. DO The marginal revenue curve for each firm shifts to the right.
MN 00 25 Price %24 Question 42 of 60 > For the monopolistically competitive firm in the following figure, the profit-maximizing price is and the quantity is MC ATC 20. 16 Demand MR 40 Quantity O $20: 25 O $16: 25 O $32; 25 O $20; 40 10:55 PM 74 F 12/12/2021 Ins prt sc delete home 12 Oy 114 dn 6d pue 144 91 & backspace wnu lock 5. 7. 4. home 6d T. enter H. pause ↑ shift 2. LE ctrl alt Sut
The government may regulate natural monopolies because O A. the government needs to ensure reasonable prices O B. Monopolies are illegal O C. natural monopolies experience economies of scale O D. market share for one firm must be limited to 40% Answers (in progress)
The American market for shoes is a good example of monopolistic competition. In a situation where Adidas is earning a large economic profit in the short-run, Nikemay try to increase their advertising to capture some of that business, If Nike is successful in their campaign, what would happen to the demand curve for Adidas and the price at which they can sell?O a. The demand curve shifts up and to the right, and the price rises.O b. The demand curve shifts up and to the right, and the price falls.O c. The demand curve shifts down and to the left, and the price walls.O d. The demand curve shifts down and to the left, and the price rises.Oe. Nike cannot affect the demand for Adidas since this is a monopolistically competitive market.
9 of 15 Warwick Inc. produces in a monopolistically compettive market. Which of the following corectly explains howa fmin this market struchure would transition trom the short run to the long run? O The supemomal profits eamed by Warwick Inc in the short run will attract new firma into the market. This wil shit the market supply curve to the right, which will reduce the market price and the price faced by Warwick ine. The price wil keep falling until Average Revenue equals Average Cost and only normal profits are made. O The supermormal profits eamed by Warwick Inc. in the short run will attract new firms into he martet. This wil shit Warwick ine. demand curve to the left and t wit continue to shit left until Average Revenue equals Average Cost and only normal profits are made O The supemomal profits eamed by Wanwick Inc. in the short run will lead to the market demand aurve shifing to the right, which will raise the price fims can sell at and ts wil atract now frms into the market.…
7. Is monopolistic competition efficient? Suppose that a company operates in the monopolistically competitive market for rugby kits. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place 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 3822ESRR 2 100 70 20 0 MO 6 19 20 ATC MR 30 AS 50 40 70 QUANTITY (Thousands of kits); Demand 8 100 Mon Comp Outcome Min Unit Cost C
7
please help
New firms likely to enter an industry when a. the profit earned by the firm is likely to be high. b. competition in the industry is likely to increase. O c. the price charged by the firm is likely to be high. d. competition in the industry is likely to decrease. e. the demand for the firm's product is likely to be less.
Which of the following is a difference between monopolistic and perfect competition? O A. In perfect competition goods are identical whereas in monopolistic competition they are differentiated O B. In perfect competition firms always have zero economic profits, whereas in monopolistic competition firms always have positive economic profits O C. In monopolistic competition there are barriers to entry whereas in perfect competition there are none O D. In perfect competition the price is set by the market, but in monopolistic competition, the firm can charge whichever price they want
The market for agricultural products such as wheat or corn would best be described by which market model? O monopolistic competition Opure competition Opure monopoly oligopoly
QUESTION 12 The figure is drawn for a monopolistically competitive firm PRICE 140 123.33 90 Table b 56.67 100 133.33 QUESTION 14 QUANTITY MC MR ATC Demand Refer to Figure. If this firm's decides to produce and sell at the profit maximizing level then what will be their O a. $8,887.78. O b.$5,000.00. OC-$5,000.00. O d. 50. QUESTION 13 A perfectly competitive firm produces where O a marginal cost equals price, while a monopolist produces where marginal cost exceeds price Ob price exceeds marginal cost, while a monopolist produces where marginal cost equals price Oc marginal cost equals price, while a monopolist produces where price exceeds marginal cost O d.marginal cost exceeds price, while a monopolist produces where marginal cost equals price.