The diagram at right shows the structure of cost and demand facing a monopolisticallycompetitive firm in the short run.The profit-maximizing output level is units of output. (Enter your response as an integer.)The profit-maximizing price is $. (Enter your response as an integer.)Total revenue is $ (Enter your response as an integer.)Total cost is $. (Enter your response as an integer.)Total profit or loss is $ (Enter your response as an integer and include a negative signwhere appropriate.)In the long run, firms willOA. exit, shifting the demand facing the remaining firms to the right until the firms earn aneconomic profit.B. exit, shifting the demand facing the remaining firms to the right until the firms earn anormal profit.OC. enter, shifting the demand facing the remaining firms to the left until the firms earn anormal profit.OD. enter, shifting the demand facing the remaining firms to the left until the firms earn aneconomic profit.$14$13$12$11$7MR1520QuantityMCDATC

A monopolistically competitive firm maximizes profit when it produce that level of output…

Answered: The diagram at right shows the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Similar questions

A large corporation with monopolistic control in the marketplace has its average daily costs, in dollars, given by C = 500 x + 200x + x2. The daily demand for x units of its product is given by p = 450,000 − 100x dollars. Find the quantity that gives maximum profit.x = units
Consider the long-run equilibrium in a monopolistically competitive market. Which of the following alternatives is correct? (a) Price is equal to marginal cost (b) The equilibrium is cost-efficient: Firms produce at the minimum of the average cost curve (c) The equilibrium is welfare-efficient: There is no deadweight loss (d) There are no barriers to entry: Every firm earns zero profits
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.
The diagram below illustrates a firm under monopolistic competition: (a) Label the curves Curve I, Curve II, Curve III, Curve IV. (b) Graphically identify profit maximizing output and price (c) Explain how the amount of profit is defined at the maximum-profit output. II II IV Q
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. Note: Dashed drop lines will automatically extend to both axes. Select and drag the rectangles from the palette to the graph. To resize, select one of the points on the rectangle and move to the desired position. PRICE (Dollars per bike) 500 450 400 350 PRICE (Dollars per bike) 300 250 200 150 100 50 0 0 MC + 50 100 AC MR 150 200 250 300 350 400 450 500 QUANTITY (Bikes) Demand Enjano Given the profit-maximizing choice of output and price, the shop is earning shops in the industry than in long-run equilibrium. + Monopolistically Competitive Outcome Now consider the long run in which bike manufacturers are free to enter and exit the market. QUANTITY (Bikes) Show the possible effect of free entry and exit by shifting the…
The figure below shows the demand curve (DD), the marginal revenue curve (MR), and the cost curves of a monopolistic competitor. Price A 3 MR QE B) Loss incurred by the producer C) Consumer surplus D) Deadweight loss ATC 25) A monopolistically competitive firm A) earns low but positive economic profits B) earns high economic profits C) earns zero economic profits D) incurs losses DD Quantity 24) Refer to the figure above. What does the region ABDC indicate? A) Economic profit MC in the long run.
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. The accompanying graph shows the market demand curve for their product. Price ($/unit) 1000 2000 3000 4,000 Quantity (units/month) If Quick Buck and Pushy Sales decide to collude and work together as a monopolist, then together they should produce Multiple Choice 3,000; $1 4,000; $2 D 2,000; $2 1,000; $3 units per month and charge per unit.
Q2: You have a small decoration business primarily making custom paper mache pinata's. Monopolistic Competition. Each customer has unique custom order, therefore it is very difficult to figure out the marginal cost of each output. You charge a price of $15 for any small two foot by two foot pinata's. Without marginal cost, how can you check to see if the small pinata's were profitable?
I understand how to compute the revenue but I'm stuck on computing the elasticity.
for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 how much it should produce to maximize its profit? for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 how much the firm should charge? for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 calculate its maximizing profit

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