£/unit 100 90 SRMC 80 70 60 50 40 30 SRAC 20 D= AR 10 MR 10 20 30 50 60 70 100 Units 40 80 90 Figure 12 Demand and cost curves for a firm in monopolistic competition Figure 12 shows the demand curve, D, marginal revenue curve, MR, and short run marginal cost (SRMC) and average cost (SRAC) curves for a firm in monopolistic competition. Using Figure 12, determine the maximum level of profit the firm can make

£/unit 100 90 SRMC 80 70 60 50 40 30 SRAC 20 D= AR 10 MR 10 20 30 50 60 70 100 Units 40 80 90 Figure 12 Demand and cost curves for a firm in monopolistic competition Figure 12 shows the demand curve, D, marginal revenue curve, MR, and short run marginal cost (SRMC) and average cost (SRAC) curves for a firm in monopolistic competition. Using Figure 12, determine the maximum level of profit the firm can make

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The accompanying graph depicts average total cost (ATC) marginal cost (MC), marginal revenue (M), and demand (D) 50 facing a monopolistically competitive firm MC 45 Place point A at the firm's profit maximizing price and quantity 40 35 What is the firm's total cost? ATC 30 25 total cost: 20 15 What is the firm's total revenue? 10 5 total revenue: $ MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity What is the firm's total profit? profit: $ Price and Cost ($)
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WataDine is one of a city’s many restaurants that serve lunch and dinner in a monopolistically competitive market. Assume WataDine, as a typical restaurant in the city, is currently producing the profit-maximizing output level, and earns positive short-run economic profit. (a) How is monopolistic competition similar to each of the following market structures? (i) Perfect competition (ii) Monopoly (b) WataDine is currently earning short-run economic profits. Draw a correctly labeled graph for WataDine in short-run equilibrium and show each of the following. (i) The profit-maximizing quantity, labeled QM (ii) The profit-maximizing price, labeled PM (c) Given that WataDine is currently earning short-run economic profits, what will happen to each of the following in the long run? (i) WataDine's economic profit. Explain. (ii) WataDine's demand curve for its restaurant meals. (d) Assume WataDine is in long-run equilibrium. (i) Is WataDine taking advantage of its economies of scale? Explain.…
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PTICE and COST $40 30 23 20 10 MC ATC ATC MR AR=D 150 200 Quantity per day 0:13 Question 11 (10 points) (Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC' Before the innovation reduced the cost, the firm's maximum economic profit was: $0. $30. $750. $4,500.
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Please help solve all parts of equation
First tab options- P>ATC, MR>MC, P=ATC, MR=MC Second tab options- equal to, greater than, less than Last tab options- business-stealing, product variety
The information below provides conditions faced by a monopolistically competitive firm. Price and costs $70 $65 $60 $55 $50 $45 $40 $40 $35 $30 $25 $250 $20455 $15 $10 $5 0 $32.50 MIR Quantity MC ATC Demand Use the information above to answer the following question. This monopolistically competitive firm's economic profit/loss is $.