PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200+ LRAC 150 100 50 + MC o ° 50 100 150 MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False
PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200+ LRAC 150 100 50 + MC o ° 50 100 150 MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

Transcribed Image Text:PRICE PER UNIT (Dollars)
500
450
400
350
300
250
LRAC
200
150
100
MC
50
MR
Demand
0
0
50 100 150
200 250 300 350 400 450 500
QUANTITY (Units)
True or False: The long-run equilibrium price is $235 per unit.
True
False
True or False: The long-run equilibrium quantity is 185 units.
True
False
True or False: The LRAC curve is at its minimum at a quantity of 100 units.
True
False
Monopolistically Competitive Outcome
Minimum of the LRAC
True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output.
True
False

Transcribed Image Text:3. Study Questions and Problems #3
The following graph represents a monopolistically competitive firm in long-run equilibrium.
Place the black point (cross sign) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive
company. Next, place the grey star on the graph to indicate the point where the LRAC reaches a minimum.
PRICE PER UNIT (Dollars)
500
450
400
350
300
250
200
150
100
50
MC
0
+
0
50
100
LRAC
MR
Demand
150 200 250 300 350 400 450 500
QUANTITY (Units)
True or False: The long-run equilibrium price is $235 per unit.
True
False
True or False: The long-run equilibrium quantity is 185 units.
True
O False
True or False: The LRAC curve is at its minimum at a quantity of 100 units.
Monopolistically Competitive Outcome
Minimum of the LRAC
?
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