Look at the figure below.Which diagram is consistent with a monopolistic competitor making zero economic profit in the long run? Look at the figure below.Which diagram is consistent with a monopolistic competitor making zero economic profit inthe long run?(a)(b)Price and cost (dollars per bike)400Price and cost (dollars per printer)120MC110350MCATC100-90300-JATC8025070200-605015040-D.100-3020-MR50-MR1000-250150Quantity (printers per day)2005030050100300150Quantity (mountain bikes per week)100200250(c)(d)PriceATCPriceMCATCMCP= ATCP= ATC = MCD MRO Eficent scale QuantityQ= Eficient scaleQuantityO diagram (a)O diagram (d)O diagram (c)O diagram (b)

Answer to the question is as follows :

Answered: Look at the figure below. Which diagram…

Look at the figure below. Which diagram is consistent with a monopolistic competitor making zero economic profit in the long run?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 1PA

See similar textbooks

Related questions

Q: Price and cost per unit P₁ P3 P₂ P₁ 0 S σ T R MR Q3 Q4 MC Demand ATC Quantity

A: Monopolistic competition is a market structure that combines elements of both monopoly and perfect…

Q: Draw the demand, MR, ATC, and MC curves for a monopolistically competitive firm earning economic…

A: Marginal Revenue: Marginal revenue is the additional revenue a firm earns by selling one more unit…

Q: How might advertising make markets less competitive?

A: We will answer the first question since the exact one was not specified. Please resubmit a question…

Q: Why is there a price markup over marginal cost in monopolistic competition? a downward-sloping…

A: The Marginal Cost (MC) is the cost of producing one more unit of a good. It is calculated by taking…

Q: Imagine a scenario in which the fashion industry is suffering from monopolistic price gouging and a…

A: The price gouging is a situation when the firms charge high prices that are unfair. The prices of…

Q: Suppose you manage a local grocery store, and you learn that a very popular national grocery chain…

A: In monopolistic competition, each firm assumes that the price charged by the competitor will remain…

Q: Suppose that, due to a successful advertising campaign, a monopolistic competitor experiences an…

A: In monopolistic competition markets, there are a large number of firms competing with each other in…

Q: Proponents of monopolistic competition point to which of the following?

A: The economics as a study is based upon the idea that the nations, societies, or economies tend to…

Q: What is monopolistic competition? Give a real-life example which follows the pattern very closely.

A: Monopolistic competition is one of the 4 main market structures which are:- Perfectly competitive…

Q: Why is a competitive market generally better for society than a monopolistic market?

A: A market economy is a way of running an economy in which the private sector, not the government,…

Q: Suppose that, due to a successful advertising campaign, a monopolistic competitor experiences an…

A: Monopolistic competition refers to an imperfect market structure, in which many firms sell…

Q: What gives firms market power in an industry characterized by Monopolistic Competition?

A: Monopolistically competitive firms have one trademark that resembles an imposing business model (a…

Q: In the long run, the positive economic profits earned by the monopolistic competitor will attract a…

A: A monopolistically competitive market is characterized by a large number of small firms that produce…

Q: How does a monopolistic market during entry and exit affect economic profit and economic loss? Show…

A: Monopolistic competition refers to a market in which there are a large number of buyers and sellers,…

Q: Which type of a firm, monopolistically competitive or a monopoly, will have a greater incentive to…

A: A monopolistically competitive market comprises of many sellers supplying similar but differentiated…

Q: The diagram above represents a monopolistically competitive firm. Answer the questions below. Is…

A: Note: Since you have posted a question with multiple sub-parts, we will provide the solution only to…

Q: ow many of the following statements are true about monopolistic competition at long run equilibrium

A: In Monopolistically competitive market, the sellers sell differentiated products which are close…

Q: Why can’t firms under monopolistic competition achieve an economic profit in the long run?

A: The gap among the income gained from the selling of an item and the prices of all products included,…

Q: If the price is less than actual total cost for a monopolistic competitive firm, does the firm make…

A: Usually a monopolistic competitive firm can be able to make abnormal profit or loss in the short run…

Q: The following graph represents a monopolistically competitive firm in long-run equilibrium. Place…

A: Monopolistically competitive firm offer competing products but their characteristics are different.…

Q: What factors hinder firms in monopolistic competition from earning economic profits in the long run?

A: Monopolistic competition is a form of imperfect competition where there are a large number of buyers…

Q: Suppose the accompanying graph depicts a monopolistically competitive firm earning positive economic…

A: In a strictly monopolistic model, in the longer term, the monopoly corporation would limit…

Q: Monopolistically competitive firms could increase the quantity they produce and potentially lower…

A: Profit maximization condition of a monopolistically competitive firm is where, MC = MR. so, they try…

Q: Does the monopolistic firm make a profit, loss, or zero economic profit in the long run?

A: Monopolistic competition- It is an imperfect competition in which there are many producers who sell…

Question

Look at the figure below.
Which diagram is consistent with a monopolistic competitor making zero economic profit in the long run?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

. Competitors in monopolistic competition have full control over- (A) The price of their product (B) Product quality (C) The shape of the market demand curve (D) The elasticity of product substitutions 8AM
Quèstion 13 Figure#5 $10 MC ATC $7 $6 $5 $4 $3 $2 $1 MR $0 0 10 20 30 40 50 60 70 80 90 100 Quantity Refer to Figure#5. This figure depicts a situation in a monopolistically competitive market. In long run, how much output will the monopolistic competition produce and will charge at what price? Price 9876 5A32
no ai please solve within 15 min otherwise downvote
None
Refer to Figure 1. If the market price is $2, what the firm will do? Enable Editing 4) Use the figure below to answer the following questions. Price and cost (dollars per unit) 80 MC 60 40 ATC 20 MR 20 40 60 80 100 Quantity (units per week) Figure 2 a) Refer to Figure 2 If this firm is in monopolistic competition, what is its output? b) Refer to Figure 2 If this firm is in monopolistic competition, what is the price it will charge? c) Refer to Figure 2. What is the firm profit situation? What time frame equilibrium is the firm? d) Refer to Figure 2. If this firm in monopolistic competition is in short-run equilibrium, and the firm making profit what will happen in the long run to the firm profit? explain
F14
Please refer to th graph attached. The graph shows the Demand, Marginal Revenue, Average Total Cost, Average variable Costs and Marginal Cost curves for a monopolist. (a) What is the profit maximizing/ loss minimizing quantity of output and what is the maximum price the monopolist can charge? (b) Is this monopolist making economic profit or economic loss? How do you know? Explain please. (c) Calculate the firms profit or loss and show the economic profit/loss on the graph.
QUESTION 11 Price and costs (dollars per calculator) 20 000 16 12 8 0 100 MC ATC O MR 200 300 400 500 600 Quantity (calculators per day) The figure above shows the situation facing Smart Digit, Inc., a firm in monopolistic competition that produces calculators. What quantity does the firm produce? more than 300 calculators per day and less than 400 calculators per day 300 calculators per day 400 calculators per day 200 calculators per day
n $19 16 MC ATC 130 D Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profit- maximizing price will be A) $16. MR 0 100 160180 210 Quantity 7) B) $10. C) $13. D) $19.
Final E G answer 201-R C Use the Chris B Chris E Checko tTicket New TM You G iyah Q Search 0/48 answered If all monopolistically competitive firms in the industry have profit circumstances similar to the firm shown in the graph: $ 0 ATC MC MR Quantity D Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a new firms will enter the industry. some firms will exit the industry. C all firms will decide to shutdown and leave the industry. d no firms will exit the industry. hp Time Re
O Macmillan Learning The accompanying graph depicts the long-run costs and revenue for a monopolistically competitive firm. The numbers in parentheses show the output level and the cost, respectively, associated with various points. Place point A at the profit maximizing price and quantity. 800 750 700 MC ATC (11,600) 650 600 (3,550) 550 What is the profit-maximizing output of this monopolistically competitive firm? Cost and Revenue ($) 500 450 (5,425) $400 (8, 400) 350 (7,340) 300 250 Units of Output 200 (5, 200) 150 100 50 MR What is the level of excess capacity for this monopolistically competitive firm? 0 0 1 2 3 4 5 6 7 8 Units of Output Units of Output (11,500) 9 10 11 12 13 14 15
no handwritten notes