In the monopolistic competition model, a firm's (using a technology with increasing returns to scale as described in class) average costs of production depend on ______?
Q: 1. Which of the following, in perfect competition, is most likely to shift a market’s supply curve…
A: Supply curve would shift to right If there is an improvement in production technology.
Q: Which of the following is true regarding monopolistic competition? Ⓒa. Each firm behaves as a…
A: Monopolistic competition is a market structure where many firms produce products that are similar…
Q: The characteristics of perfect competition and imperfect competition (monopolistic competition,…
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Q: (a) What is meant by consumer surplus and producer surplus? Using a diagram show that there is a…
A: The additional gain received by both producers and consumers in an economic transaction is used to…
Q: Question 1 a. With the aid of a diagram explain how a monopolist determines how much output to…
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Q: Suppose a monopolistic competitor faces the following cost and demand in the short run: What is the…
A: In a monopolistic competition, There exists a large no. of sellers selling differentiated products.…
Q: Which of the following statements is correct? a. In the long run, both perfectly competitive…
A: Excess capacity occurs when the output produced by firm is less than its efficient level of…
Q: The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that…
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Q: a) What is the level of production maximizes the short-term profits of this company? b) What price…
A: The monopolistic firms are not efficient because these firm charges higher prices and has high…
Q: The graph shows the cost curves, demand curve, and marginal revenue curve of a firm in monopolistic…
A: A monopoly is a market structure characterized by a single dominant seller controlling the supply of…
Q: Output Price FC VC TC TR…
A: Monopolistic competition: It refers to that competition in which the producer has no choice to…
Q: 1. Under the model of monopolistic competition, a(an) ________ in the number of firms in the…
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Q: A perfectly competitive firm is considered to be more generous in terms of price and quantity of…
A: Answer to sub parts c and d are as follows:
Q: The diagram above represents a monopolistically competitive firm. Answer the questions below. Is…
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Q: The inefficiency (dead-weight loss) of a monopoly (as compared to perfect competition) indicates the…
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Q: If Sam and Jack each produce the same quantity of appointments as would be produced in perfect…
A: Perfect competition is the name given to an ideal market system. Under a perfect competition model,…
Q: 1. If the demand for a good increases at the same time as the supply of the same good decreases,…
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Q: Markbury is a monopoly selling widgets. If the government imposes a $100 000 tax on every…
A: Markbury is a monopoly selling widgets. If the government imposes a $100 000 tax on every…
Q: What are the “monopolistic” and the “competitive” elements of monopolistic competition?…
A: Monopolistic competition is a market structure which combines elements of monopoly and competitive…
Q: Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or…
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Q: Use Figure Four on page 10 to answer (4). In the long run: a)what is the monopolist’s output?…
A: A market formation is characterized by a single seller, selling a unique product in the market. In a…
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- 1. If Sam and Jack each produce the same quantity of appointments as would be produced in perfect competition, the total quantity of appointments is ___ the price per lesson would be ____ , and the economic profit of Sam and Jack would be____? 2. If Sam and Jack form a cartel and produce the same quantity of appointments as would be produced in a monopoly, the total quantity of appointments would be ____, the price per appointment is ____ and the economic profit of Sam and Jack is ____? 3. Would Sam and Jack have an incentive to break the cartel agreement and lower their price to increase the number of tennis lesson appointments?1. Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not? 2. What stops oligopolists from acting together as a monopolist and earning the highest possible level of profits? Is there a way for oligopolists to attempt to maximize profits? What are the risks of such attempts (and utimately, generally cause such attempts to fail)?1. Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________. 2. In the model of monopolistic competition, if the price is ______ than average costs, then firms are earning __________ economic profit and we should expect firms to _________ the industry. 3. In the model of monopolistic competition, if an industry has large ________ relative to another industry, then we should expect _________ firms to operate in a long-run equilibrium of that industry.
- Which of the following is true regarding monopolistic competition? Ⓒa. Each firm behaves as a monopolist, but makes no profits in the long run due to competition from close substitutes b. Save your money, and only purchase the railroads and high-end properties on the board (i.e. red, yellow, green, and blue) c. There is no such thing as monopolistic competition, it is an oxymoron d. Firms behave competitively, but they make profits in the long run because there are some barriers preventing entrepreneurs from entering the marketThe diagram above represents a monopolistically competitive firm. Answer the questions below. Is this firm operating in the short-run or long-run? How do you know? Calculate this firm’s accounting profit. From the diagram, what is the productively efficient output for this firm? From the diagram, economies of scale are maximized at which output level? Explain. From the diagram, what is the allocatively efficient output for this firm? Explain.Exercise A.8. The graph below corresponds to a company operating in a market under conditions of monopolistic competition: € 5 4 3 2 1 CM CMe 20 40 60 90 100 120 Quantity of output a) What is the level of production maximizes the short-term profits of this company? b) What price will the company charge to maximize its profits? c) What benefits does the company obtain in the short term? d) How would advertising affect the curves shown in the graph? Would profits necessarily increase? Reason your answers.
- (a) What is meant by consumer surplus and producer surplus? Using a diagram show that there is a deadweight loss to society from monopoly in terms of total surplus. (b) In what ways is a monopolistically competitive firm likely to be less efficient than one under perfect competition?Question 1a. With the aid of a diagram explain how a monopolist determines how much output to produce and what price to charge. b. Explain how the perfectly competitive firm decides whether to operate or shut down in the short run. c. Explain why firms operating in monopolistically competitive markets probably will not earn an economic profit in the long run. d. Why does interdependence of firms play a major role in oligopoly but not in perfect competition or monopolistic competition? Question 2a. A producer borrows money and starts a business. He himself looks after the business. Identify implicit and explicit costs from this information. Explain. b. List and explain which of the following is a fixed cost or a variable cost for Caribbean Airlines. i. The cost of fuel used in its planes. ii. The rent on its Piarco headquarters. iii. The lease payments on its current inventory of jets. iv. The cost of peanuts it serves to passengers. v. The salary paid to the Chief Executive Officer. c.…The graph shows the cost curves, demand curve, and marginal revenue curve of a firm in monopolistic competition. If this firm is maximizing profits, what is the firm's economic profit in millions of dollars? [NOTE: The quantities shown in the graph are in millions. Please enter the number of millions of dollars of economic profit in the statement below.] The firm's economic profit is $ million. 2207 200- 180- 160- 140- 120- 100- 80- 60- 40- 20- Price and cost (dollars per pair) 10+ 0.0 MC MR ATC D 0.5 1.0 1.5 2.0 2.5 Quantity (millions of pairs of Uggs per year) 3.0
- Question 1Which of the following statements is correct? a. In the long run, both perfectly competitive firms and monopolistically competitive firms operate with excess capacity. b. A firm operates with excess capacity when, in the long run, its level of output is below the efficient scale. c. For any firm, efficient scale is the level of output at which the average-total-cost curve is tangent to the demand curve. d. All of the above are correct.What are the “monopolistic” and the “competitive” elements of monopolistic competition?Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.Similar to a monopoly, a monopolistic competitor: can restrict output to increase price (at least in the short run).checked can make profits or losses in the short run.unanswered faces a downward-sloping demand curve.unanswered faces high barriers to entry.unanswered makes economic profits in the long run.unanswered produces where P > MR = MC.unanswered has one seller.unanswered Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.Similar to a perfect competitor, a monopolistic competitor: faces a perfectly elastic demand…