In a monopolistically competitive market, the demand for Zack's Rootbeer can be desribed as P=20-Q. The marginal revenue that Zack faces is MR-20-2Q. Also, the marginal cost for the firm is MC=2Q. Finally, ATC=(Q²+10)\Q. Find the CS. 5 25 12.5 2.5
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- Why demand curve in monopolistic competition market is downward sloping?) For the toolbar, press ALT+F10 (PC) or ALT+FN+F1O (Mac). Paragranh Arial 10Mail - Oliver, Ak X 13) Online Quiz i heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%2525 1er. Excel Module 8 X 13 10 Refer to the graph for a monopolistically competitive firm in short-run equilibrium. This f 0 100 X M Question 16-LCX M Inbox (9,354) - Multiple Choice lass of $280 MC 160 180 210 Quantity ATC MR DPricing Strategies for Firms with Market Power-End of Chapter Problem Elario's inverse demand for cupcakes is And Elario's marginal and average cost is a constant $0.50. Suppose Elario decides to sell cupcakes only in packages of 20. a. How much would customers be willing to pay to obtain a 20-pack of Elario's cupcakes? Price for 20-pack = $ b. How much profit will Elario earn from each customer? Profit per customer: $ c. Profit under this scheme is profit earned by Elario in part d of problem 16.
- You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.k Onli.... s 15 10) Below are drawn cost curves for a monopolistically competitive firm. What is the profit? 16 14 812 10 Dollars 0 MC MR 20 23 25 30 Number of haircuts ATC 9 DWe now assume the firm producing a steel bar is under monopolistic competition. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. The firms fixed cost is $45,000. Its variable cost in thousands at each level of production are 45, 85, 120, 150, 185, 225, 270, 325, 390, and 465. 1. At what production output should the firm produce in the long run? 2. At what price should the firm sell its product in the long run?
- We now assume the firm producing a steel bar is under monopolistic competition. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. The firms fixed cost is $45,000. Its variable cost in thousands at each level of production are 45, 85, 120, 150, 185, 225, 270, 325, 390, and 465. 1. How much would be the consumers' surplus when the firm produces in the long run? 2. How much would be the economic profit of the firm?The diagram below shows selected cost and revenue curves for a firm in a monopolistically competitive industry. Price ($) 13 7 FIGURE 11-4 90 Quantity 91 MR D MC LRAC Refer to Figure 11-4. Which of the following best describes this industry if all firms have the same cost and revenue curves and are producing output of q 0? O firms are earning positive profits and new firms will enter the industry until all firms are operating at their minimum LRAC all firms will try to minimize costs and move toward minimum LRAC O O firms are incurring losses and firms will exit this industry O firms are earning zero profits and there is no incentive for firms to enter or leave the industry O all firms are earning positive profits and there is no incentive for firms to enter or exit the industryThe graph at right depicts a monopolistically competitive firm in the long run. Assume the firm exhibits profit-maximizing behaviour. Monopolistically Competitive Firm This firm's excess capacity is units. (Enter your response rounded to the nearest whole number.) MC 34 LRAC 24 MR : D 8 16 20 26 Output Dollars per Unit
- 25 15 10 MR D 10 15 20 25 30 Quantity (surfboards per hour) Sue's Surfboards is the sole renter of surfboards on Big Wave Island. Sue's demand and marginal revenue curves are illustrated in the figure above. Sue's Surfboards currently rents 15 surfboards an hour. Sue's total revenue from the 15 surfboards is O $225. $10. $300. $150. Price (dollars per surfboard)Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the profit maximizing level of output, what will be the firm's total cost? 45 MC1 40 35 ATC1 30 AVC1 25 20 15 10 MR1 1 2 3 4 56 7 8 9 $140 $120 O $125 total fixed costs only only, because the firm will shut down 5$19 16 13 10 0 100 Multiple Choice $10. $13. Refer to the diagram for a monopolistically competitive firm in short-run $16. MC $19. 160180 210 Quantity MR ATC ibrium. This firm's profit-maximizing price will be
