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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9 When entry occurs in a monopolistically competitive industry, which of the following occurs? A The perceived demand curve for each firm shifts to the right. The perceived demand and marginal revenue curves for each firm shift to the right. The perceived demand and marginal revenue curves for each firm shift to the left. DO The marginal revenue curve for each firm shifts to the right.
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5. How do monopolistically competitive markets differ from competitive markets? If monopolistically competitive firms are making economic profits in the short run, what happens in the long run?
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.23. Which of the following does not characterize monopolistic competition? a Product differentiation Many prodicIS Absence of advertising. d. Some control over price AR
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