With explain this question Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graphPRICE (Dollars per bike)Homework (Ch 16)PRICEQUANTITY (Bikes)QUANTITY (Bikes)DemandDemandPrice is above marginal cost.Price equals average total cost in the long run.Firms can earn positive profit in the long run.Firms are not price takers.10Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.Demand 3. How short-run profit or losses induce entry or exitFantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demandcurve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).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 (Dolars per bike)500PRICE (Dolars per bike)450400300200150Homework (Ch 16)600450400210150100050 100ATCATCDemans150 200 250 300 350 400 450 500QUANTITY (Bas)•+Monopolistically Competitive OutcomeProff or Loss+Monopolistically Competitive OutcomeGiven the profit-maximizing choice of output and price, the shop is makingProft or Lossshops in the industry relative to the long-run equilibrium.profit, which means there areNow consider the long run in which bike 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 bikes on the following graph.search this course

Solution:- 1st Part) ▪︎Firm's are not price takers- True Explanation- If there is perfect…

Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph PRICE (Dollars per bike) Homework (Ch 16) PRICE QUANTITY (Bikes) QUANTITY (Bikes) Demand Demand 101 Price equals average total cost in the long run. Firms can earn positive profit in the long run. Firms are not price takers. Price is above marginal cost. Demand Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.

Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph PRICE (Dollars per bike) Homework (Ch 16) PRICE QUANTITY (Bikes) QUANTITY (Bikes) Demand Demand 101 Price equals average total cost in the long run. Firms can earn positive profit in the long run. Firms are not price takers. Price is above marginal cost. Demand Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.

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

With explain this question

Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph
PRICE (Dollars per bike)
Homework (Ch 16)
PRICE
QUANTITY (Bikes)
QUANTITY (Bikes)
Demand
Demand
Price is above marginal cost.
Price equals average total cost in the long run.
Firms can earn positive profit in the long run.
Firms are not price takers.
10
Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.
Demand

3. How short-run profit or losses induce entry or exit
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand
curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).
Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive
company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.
PRICE (Dolars per bike)
500
PRICE (Dolars per bike)
450
400
300
200
150
Homework (Ch 16)
600
450
400
210
150
100
0
50 100
ATC
ATC
Demans
150 200 250 300 350 400 450 500
QUANTITY (Bas)
•+
Monopolistically Competitive Outcome
Proff or Loss
+
Monopolistically Competitive Outcome
Given the profit-maximizing choice of output and price, the shop is making
Proft or Loss
shops in the industry relative to the long-run equilibrium.
profit, which means there are
Now consider the long run in which bike 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 bikes on the following graph.
search this course

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AutoSave Off HU File Home Paste Clipboard Page 1 of 1 Insert Design Layout Calibri (Body) ✓11 A A Aa A E A BI U ab x₂ x² A ✓ Font V 29 words DX Type here to search Accessibility: Investigate Document1 - Word References Mailings Review S Paragraph Search ↓ IT View ¶ S Help AaBbCcDc AaBbCcDc AaBbC AaBbcct AaB ¶ Normal 1 No Spac... Heading 1 Heading 2 Title Styles Residents of two districts, Oz and Wonderland, initially fall into two types: blue (B) and red (R). In Oz, there are 500 blue residents and 1000 red residents, while in Wonderland there are 1000 blue residents and 500 red residents. Blue residents earn a regular passive income of YB = 12,000, while red residents' passive income is Y₁ = 2,000 due to their lower initial endowments. Both districts provide a local public good for their residents, G. Utility is given by Vi 23G-8, everywhere. Provision of this good takes place at the local government level, with the amount of provision chosen by majority vote within each district. ¡ =…
AutoSave Off HU File Home Paste Clipboard Page 1 of 1 Insert Design Layout Calibri (Body) ✓11 BI U ab x₂ x² A ✓ Font V 23 words DX Type here to search Accessibility: Investigate Document1 - Word A A Aa A A References S Mailings Review Paragraph IT Search ↓ View 2¶ S Help AaBbCcDc AaBbCcDc AaBbC AaBbcct AaB ¶ Normal 1 No Spac... Heading 1 Heading 2 Title Styles Residents of two districts, Oz and Wonderland, initially fall into two types: blue (B) and red (R). In Oz, there are 500 blue residents and 1000 red residents, while in Wonderland there are 1000 blue residents and 500 red residents. Blue residents earn a regular passive income of YB = 12,000, while red residents' passive income is Y₁ = 2,000 due to their lower initial endowments. Both districts provide a local public good for their residents, G. Utility is given by Vi 23G-8, everywhere. Provision of this good takes place at the local government level, with the amount of provision chosen by majority vote within each district. y =…
Sophia ✓ My Home Courses WyoWeb Catalog and Study Tools Rental Options College Success Tips Career Success Tips ? Help « Give Feedback CENGAGE MINDTAP Homework (Ch 09) 4. Effects of a tariff on international trade PRICE (Dollars per ton) 525 495 465 The following graph shows the domestic supply of and demand for maize in Sudan. The world price (Pw) of maize is $255 per ton and is represented by the horizontal black line. Throughout the question, assume that the amount demanded by any one country does not affect the world price of maize and that there are no transportation or transaction costs associated with international trade in maize. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. 435 405 375 345 315 285 Homework (Ch 09) 255 225 0 10 20 Domestic Demand Domestic Supply x 40 50 60 70 QUANTITY (Tons of maize) music ✓ cody ✓ Engl 1010 Wyo bSearch results for 'The following graph s... 30 ng.cengage.com…