Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demandcurve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus.Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitivecompany. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.?PRICE (Dollars per scooter)# # # # # 2 & 32.5004504003503002102001501000MO0 50 100ATCMRDemand150 200 250 300 350 400 450 500QUANTITY (Scooters)+Monopolistically Competitive OutcomeGiven the profit-maximizing choice of output and price, Citrus Scooters is earningProfit or Losssellers in the industry relative to the long-run equilibrium amount.Now consider the long run in which scooter manufacturers are free to enter and exit the market.Dprofit, which means there are Now consider the long run in which scooter manufacturers are free to enter and exit the market.Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of scooters on the following graph.PRICE Dollars per scooter)QUANTITY (Scooters)DemandDemandWhich of the following statements are true for both monopolistically competitive markets and monopoly markets? Check all that applyFirms can earn positive profit in the long run.Price is above marginal cost.Firms earn zero profit in the long run.Firms are not price takers.

Monopolistic competitive market is the hybrid of perfect competition and monopoly where there are…

Answered: Show the possible effect of this free…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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