Consider the diagram at the right depicting the revenue and cost conditionsfaced by a monopolistically competitive firm.40-What are the total revenues experienced by this firm? $ 280035-MCWhat are the total costs experienced by this firm? S 2800ATCWhat are the economic profits experienced by this firm? S0.This firm is more likely in long-run equilibrium because22O A. economic profits will stimulate entry (which is a long-run change).O B. normal profits will stimulate entry (which is a long-run change).18MRO C. normal profits will not stimulate entry (which is a long-run change).D15-O D. None of the above are true.10016010-4080120 160 200' 240' 280Quantity (units per day)Revenues and Costs ($ per unit)

In a monopolistic competitive firm there are large number of firms producing similar but not…

sider the diagram at the right depicting the revenue and cost conditions d by a monopolistically competitive firm. at are the total revenues experienced by this firm? S 2800 MC st are the total costs experienced by this firm? 5 2800. st are the economic profits experienced by this firm? 50. ATC firm is more likely in long |run equilibrium because 22 A. economic profits willstimulate entry (which is a long-run change). 20- 18 B. normal profits will stimulate entry (which is a long-run change). C. normal profits will not stmulate entry (which is a long-run change). D. None of the above are true. MR 15 100 160 120 160 200 2z40 280 Quantity (units per day) 10- 40 of (pun Jod ) sus00 pue sanueA

sider the diagram at the right depicting the revenue and cost conditions d by a monopolistically competitive firm. at are the total revenues experienced by this firm? S 2800 MC st are the total costs experienced by this firm? 5 2800. st are the economic profits experienced by this firm? 50. ATC firm is more likely in long |run equilibrium because 22 A. economic profits willstimulate entry (which is a long-run change). 20- 18 B. normal profits will stimulate entry (which is a long-run change). C. normal profits will not stmulate entry (which is a long-run change). D. None of the above are true. MR 15 100 160 120 160 200 2z40 280 Quantity (units per day) 10- 40 of (pun Jod ) sus00 pue sanueA

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1200 1100 1000 900 800 700 600 PRICE 500 400 300 200 100 MC Figure 16-3 Demand Refer to Figure 17-3. The firm in this figure is monopolistically competitive and maximizing profit. This firm a. is operating in the long run. b. is incurring a short-run loss. c. The answer cannot be determined from the information given. d. is earning a short-run economic profit. MR 5 10 15 20 25 30 35 40 45 50 55 60 QUANTITY
1. Consider a monopolistically competitive market of hair salon. Glamour Hair Salon is one of the many firms in the market best known for their hair spa service. They have been running the business for 30 years already. With this, imagine its long run equilibrium.
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I need the answer as soon as possible
8. A monopolistically competitive firm has a: a. Highly elastic demand curve b. perfectly inelastic demand curve c. Highly inelastic demand curve d. perfectly elastic demand curve
4. Pat's Hair Designs is part of a monopolistically competitive haircut market in Berkeley. (a) At present, Pat is earning positive profits by running the haircut business. Draw a diagram illustrating Pat's profit-maximizing price and quantity of haircuts. Explain what your diagram shows, including a descritpion of what each line in your diagram represents. (b) Is the haircut market in Berkeley in long-run equilibrium? If it is, explain why. If it is not, draw a diagram illustrating Pat's profit-maximizing price and quantity of haircut in the long-run equilibrium (Assume Pat's remains in the market). Explain how the market moves from the equilibrium you drew in (a) to the one here. (In other words, explain which curves move and why.)
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