Question 4 Monopolistic competitive firms share some characteristics with perfectly competitive firms. What are the similarities: (Select All that Apply) In the long run, they earn positive economic profits In the long run, they earn zero economic profits Barriers to entry/exit Easy entry/exit Differentiated Products Standardized Products Downward sloping Demand curve Perfectly elastic Demand curve

Question 4 Monopolistic competitive firms share some characteristics with perfectly competitive firms. What are the similarities: (Select All that Apply) In the long run, they earn positive economic profits In the long run, they earn zero economic profits Barriers to entry/exit Easy entry/exit Differentiated Products Standardized Products Downward sloping Demand curve Perfectly elastic Demand curve

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 7 As competitors enter a monopolistically competitive industry, the incumbent firms' demand curves... Group of answer choices Shift to the left and become less elastic Shift to the right and become less elastic Shift to the left and become more elastic Shift to the right and become more elastic
A Monopolistic competitive market has some features of perfect competitive markets and some of monopoly markets. Given the statements below identify the one that is most likely to be seen in a monopolistic competitive market structure. A. Collusion and price fixing between firms B. Government anti trust oversight C. standardized, homogeneous products D. non Price competition such as advertising
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.
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.
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Question 3 In a monopolistically competitive industry, firms set price Group of answer choices equal to marginal cost since each firm is a price taker. below marginal cost since each firm is a price taker. above marginal cost since each firm is a price setter. always a fraction of marginal cost since each firm is a price setter.
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
PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 0 MC 50 100 150 ATC MR 200 250 QUANTITY (Bikes) Demand 300 350 400 450 500 Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, the shop is making hp Profit or Loss shops in the industry relative to the long-run equilibrium. n profit, which means there are
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.
Compare and contrast the way that monopolistic competitors set price with the way that perfectly competitive firms set price. Also, compare and contrast the short and long run equilibrium in perfect competition and monopolistic competition.