Price (dollars per unit)100908.5807055403020100MR₂20 40 60 80 100 140$100; 200$90; 220$80; 200$85; 250MCATC•D₁LRACMR₁200 220 250Quantity (units per week)Using FIGURE #6, assume this firm faces demand curve D₁. If this firm inmonopolistic competition is maximizing profit they will charge a price ofproduce a quantity of ____ units.and Price (dollars per unit)1009085807055403020100MR₂20 40 60 80 100 140MCATC•D₁LRAC*MR₁200 220 250Quantity (units per week)Using FIGURE #6, assume this firm faces demand curve D₁. If this firm inmonopolistic competition is maximizing profitthe firm's profits will rise over time.there will be exit of rival firms out of the industry.there will be entry of rival firms into the industry.the firm will make positive economic profits in the long run.

In monopolistic competitive market there are many firms producing differentiated goods.

Price (dollars p 90 80 70 55 40 30 20 10 0 MR₂ 20 40 60 80 100 140 $100; 200 $90; 220 $80; 200 $85; 250 MC ATC D₁ 200 220 250 Quantity (units per week) LRAC MR₁ Using FIGURE #6, assume this firm faces demand curve D₁. If this firm in monopolistic competition is maximizing profit they will charge a price of produce a quantity of ____ units. and

Price (dollars p 90 80 70 55 40 30 20 10 0 MR₂ 20 40 60 80 100 140 $100; 200 $90; 220 $80; 200 $85; 250 MC ATC D₁ 200 220 250 Quantity (units per week) LRAC MR₁ Using FIGURE #6, assume this firm faces demand curve D₁. If this firm in monopolistic competition is maximizing profit they will charge a price of produce a quantity of ____ units. and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.…
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D and E
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 revenue? 45 40 35 30 25 20 15 10 5 Select one: a. $64 b. $80 c. $120 MC1 d. $0 because the firm will shut down ATC₁ AVC1 MR1 D₁ 1 2 3 4 5 6 7 8 9 хо
5- 3- 1- 20 40 60 80 100 Q MR Using the above graph, This profit-maximizing firm will produce Blank 1 units. -MC What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) Blank 1 Blank 2 Blank 3 Blank 4 Add your answer Add your answer Add your answer Add your answer
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