Suppose a monopolistically competitive firm has a marginal cost of $2 and a marginal revenue of $8. The price of the product exceeds ATC. The monopolistically competitive firm should _____ its output and ______its price. Question 8 options: a) decrease; increase b) increase; increase c) increase; lower d) decrease; decrease

Suppose a monopolistically competitive firm has a marginal cost of $2 and a marginal revenue of $8. The price of the product exceeds ATC. The monopolistically competitive firm should _ its output and __its price. Question 8 options: a) decrease; increase b) increase; increase c) increase; lower d) decrease; decrease

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the monopolistically competitive firm is charging a price equal to average total cost. The the monopolistically competitive firm should Question 4 options: a) increase its output b) decrease its output c) is operating in the long run d) can expect new firms to enter
Answer all four questions! Is a monopolistically competitive firm productively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be productively inefficient. Is it allocatively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be allocatively inefficient.
Answer choices are first blank: negative, positive, zero second blank: an equal number of, fewer, more
The information below provides conditions faced by a monopolistically competitive firm. Price and costs $70 $65 $60 $55 $50 $45 $40 $40 $35 $30 $25 $250 $20455 $15 $10 $5 0 $32.50 MIR Quantity MC ATC Demand Use the information above to answer the following question. This monopolistically competitive firm's economic profit/loss is $.
A monopolistically competitive firm faces the following demand curve for its product: Price ($) 10 6. 8. 17. 6. 3 2 1 Quantity 4 6. 8. 10 12 14 16 18 20 Refer to the Table. The firm has total fixed costs of $20 and a constant marginal cost of $9 per unit. How many units will the firm produce? "Don't leave spaces before, after or in between your number.
explain the relationship between the market price and a monopolistically competitive firm’s marginal revenue, be able to find the profit-maximizing output and price
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.
ou are hired as a consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost: P<MC, P>ATCP<MC, P>ATC Which of the following statements are true about the firm? Check all that apply. The firm is possibly maximizing profit. The firm is in long-run equilibrium. The firm can increase its profit by reducing its output.
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 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.
The table below shows the total cost (TC) and marginal cost (MC) for Choco Lovers, a monopolistic firm producing different quantities of chocolate gift boxes. Fill in the blanks in the table. Quantity 0 5 10 15 20 25 30 Price $22 20 16 14 12 10 Profit Profit-maximizing quantity Profit-maximizing price 18 Total Revenue 50 100 180 240 280 300 300 Total Cost $50 55 57.5 62.5 72.5 122.5 Marginal Cost Marginal Revenue $1 0.5 2 4 6 1 10 12 8 Instructions: Enter your answers as whole numbers. For profit, round your answer to 2 decimal places. 0 20
a) draw a graph for monopolistic competition market that is in long run equilibrium marking the price and quantity. Explain why the firm will be at that price and quantity. b) State the conditions that establish the market structure monopolistic competition, and state how the market adjusts to long run equilibrium and what is different about long run equilibrium for this market structure.