Question 15The graph shows the marginal cost curve, average total cost curve, demand curve, and marginal revenuecurve of a firm in monopolistic competition in long-run equilibrium.Draw a point at the firm's profit-maximizing output and price. Label it 1.Draw a point to show the firm's efficient scale and its average total cost at that output. Label it 2.Draw a horizontal arrow that indicates the firm's excess capacity. Label it.Price and cost (dollars per pair)50-40-30-20-10-MRD50100150Quantity (pairs of blue jeans per day)MCATC200

A monopolist sets a price in order to sell a smaller number. It indicates that fewer quantities are…

Answered: Question 15 The graph shows the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the figure to the right shows the demand curve for a monopolistically competitive firm. Show the firm's marginal revenue curve. 20- 18- Using the line drawing tool, graph the firm's marginal revenue curve. Label this curve "MR." 16- Carefully follow the instructions above, and only draw the required object. 14- E 12 10- 4- 12 16 20 24 28 32 36 40 Quantity Price (dollars per unit)
Q8. The similarity between Monopoly and Monopolistic competition is vow a) Free entry and exit of firms marginal revenue b) Quality of product is same c) Price charged exceeds d) Demand curves are perfectly elastic. Q9. Which of the following conditions is acceptable as the last stage of production for a P.C. firm? a) Size of loss equals to total fixed cost b) Size of loss equals to total variable cost c) Size of loss equals to total cost d) Firm earns zero economic profit Q10 The monopolistic competitive firm produces product a) That is slightly differentiated b) That is significantly different from each other c) That is considerably different from each other d) That is of lower quality than the P.C. firm
1. If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good? Explain. 2. What is the deadweight loss of monopoly? Show the deadweight loss when the monopolist can perfectly price discriminate. 3. What is the point of long run equilibrium of a monopolistically competitive firm. How does it compare to a competitive firm.
Question 5 The diagram below illustrates a firm under monopolistic competition: Label the curves Curve I, Curve II, Curve III, Curve IV. Graphically identify profit maximizing output and price Explain how the amount of profit is defined at the maximum-profit output.
36
Monopolistic Competition. MC AC $15 $10 demand 400 525 Quantity of Brand X Using the information in the graph above, the long-run price in this market is
The table above is for a monopolistic competitive firm. What will the firm's profit equal in the short run? Question 3 options: $0 $91 $102 $228
Question 5 In a monopolistically competitive industry, a firm’s demand curve also represents its... Group of answer choices marginal cost. profit. marginal revenue. average revenue.
The table is for a monopolistic competitive firm in the short run. What will the firm's profit equal in the long run? Question 1 options: $0 $91 $102 $228
Question 26 If firms in a competitive price-searcher (monopolistic competitive) market are currently earning economic losses, then in the long run, new firms will enter the market, and the current firms will experience a decrease in demand for their products until zero economic profit is again restored. new firms will enter the market, and the current firms will experience an increase in demand for their products until zero economic profit is again restored. some existing firms will exit the market, and the remaining firms will experience an increase in demand for their products until zero economic profit is again restored. some existing firms will exit the market, and the remaining firms will experience a decrease in demand for their products until zero economic profit is again restored.
QUESTION 22 For monopolistically competitive firms in long-run equilibrium: the demand curve must intersect average total cost at its minimum. the demand curve must be tangent to the average total cost curve at its minimum. at the profit-maximizing quantity, the demand curve must intersect the average total cost curve quantity. at the profit-maximizing quantity, the demand curve must be tangent to the average total cost curve.
Part II | The graph below shows a monopolistically competitive firm in the short run. Price and Cost 8 9 8 20 0 100 MR 200 300 400 500 600 700 800 Output MC 9. What is the firm's profit-maximizing price and quantity? 10. How much profit does that firm make at that price and quantity? 900 ATC -d-p

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