QUESTION 15 Which is the correct formula to calculate marginal revenue for a monopolistically competitive firm? O Total Revenue/Quantity O Change in Total Revenue/Change in Quantity O Average Total Revenue/Quantity O Price x quantity sold QUESTION 16 One similarity between monopoly and monoplistic competition is O in both markets price is greater than marginal revenue O in both markets there are a lot of sellers O in both market the firm always earn profits O in both market there is free entry and exit

QUESTION 15 Which is the correct formula to calculate marginal revenue for a monopolistically competitive firm? O Total Revenue/Quantity O Change in Total Revenue/Change in Quantity O Average Total Revenue/Quantity O Price x quantity sold QUESTION 16 One similarity between monopoly and monoplistic competition is O in both markets price is greater than marginal revenue O in both markets there are a lot of sellers O in both market the firm always earn profits O in both market there is free entry and exit

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 theory of monopolistic competition explains economic behaviour in industries in which there are O A. a few small firms, each with some market power. O B. many small firms, each with some market power. O C. many small firms, each with no market power. O D. a few small firms, each with no market power. O E. None of the above.
The monopolistically competitive firm sells OA. a homogeneous; a downward-sloping B. a differentiated; a horizontal OC. a differentiated; a downward-sloping O D. a homogeneous; a horizontal product and faces demand curve.
The figure to the right illustrates market demand for a monopoly along with its average total cost (ATC) curve. Is the monopoly a natural monopoly? The firm O A. is a natural monopoly because its demand curve is downward sloping. O B. is a natural monopoly because it has the potential to earn economic profits. OC. is not a natural monopoly because its demand curve is not infinitely elastic. O D. is not a natural monopoly because it experiences diseconomies of scale. OE E. is a natural monopoly because it can supply the entire market at lower average total cost than can two or more firms. Suppose 14 units of output are supplied in the market. How much lower is the average total cost of production for one firm compared to two firms? One firm can supply 14 units of output for $less per unit in average total cost than two firms. (Enter your response as an integer.) Price and cost (dollars per unit) 10.00- 9.00- 8.00- 7.00- 6.00- 5.00- 4.00- 3.00- 2.00- 1.00- 0.00- 0 2 4 6 ATC Demand 8 10…
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1 Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 62 units of output per day. The average total cost (ATC) for those 62 units is $18. Instruction: Round your answers below to the nearest whole number. How much revenue will it take in each day? $ ook What will be its economic profit or loss? FInt Loss v of $ rences Next, suppose that entry or exit occurs in this monopolistically competitive industry and establishes a long-run equilibrium. If the firm's daily output remains at 62 units, what price will it be able to charge? $ What will be its economic profit or loss? Neither profit nor loss v of $ rev 1 of 9 Next > MacBook Air
Question 24 A monopolistically competitive market is like both a competitive market and a monopoly in that all three market structures feature easy entry by new firms in the long run. firms in all three market structures maximize profit by producing an output level where marginal revenue equals marginal cost. C firms in all three market structures produce the welfare-maximizing level of output. O All of the above are correct. Quiz
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QUESTION 10 For a monopoly firm: O A. total revenue is a straight, O B. the marginal revenue curve lies O C. the marginal revenue curve lies O D. the marginal revenue curve lies upsloping line because a firm's sales are independent of product price above the demand curve because any below the demand curve because below the demand curve because reduction in price applies to all units any reduction in price applies to any reduction in price applies only to the extra unit sold sold all units sold
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Which of the following statements regarding a profit-maximising monopolist is FALSE? O a. This firm might respond to a fall in demand by reducing both its output and its price. O b. This firm might respond to a fall in demand by reducing its output and increasing its price. O c. This firm would respond to a fall in the price of a variable input by increasing its output and reducing its price. d. This firm would respond to a fall in the price of a fixed input by increasing its output and reducing its price.
9) Which of the following statements is not true about monopolistic competition in comparison to a perfectly competitive market? O Firms do not have market power in either of the two market structures. There are many firms in both market structures. Firms operating in a monopolistically competitive market make both output and pricing decisions while those in a perfectly competitive markets choose only the output level. Firms in both market structures make zero economic profits in the long run. Too
In monopolistic competition equilibrium with symmetric fırms, firms enter until each firm earns O zero economic profits because price equals average cot. O positive monopoly profits because it sells a differentiated product. O positive economic profits only if it engages in international trade O negative economic profits because of fixed costs.