The diagram below shows demand and cost curves for amonopolistically competitive firm.Dollars per unitP₁P₂-E₁Q₁FIGURE 11-3Q₂MRMCLRACDemandOutputRefer to Figure 11-3. This monopolistically competitive firm isallocatively inefficient because in long-run equilibrium,OA) MC is greater than price.OB) price is greater than MC at Q1.OC) LRAC is not at its minimum.OD) price is greater than LRAC at Q1.OE) None of the above - the long-run equilibrium is allocativelyefficient.

In the context of monopolistic competition, allocative efficiency occurs when the price that…

Answered: The diagram below shows demand and cost…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Derive and graph demand curve, marginal revenue, total revenue and price elasticity when given a linear demand function
TM Unifi is the only provider of fiber optics cable to a state. The firm enjoys the privilege ' to determine the price of the product as there is no competitor in this place. Describe any THREE (3) main characteristics of this market. Illustrate the situation of TM Unifi in the long run using an appropriate diagram(s).
M12
QUESTION 13 A monopolistic competitive firm. a)As presented in Exhibit, the long-run profit-maximizing output for the monopolistic competitive firm is? b) To maximize long-run profits, the monopolistically competitive firm shown in Exhibit will charge a price per unit of ?
When producers do not produce the efficient amount of a product because they are unable to charge consumers what they need to do so, then there exists a Multiple Choice competitive market Osupply-side market failure. demand-side market failure monopolistic market 22
This profit-maximizing firm will produce Blank 1 units. What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.)
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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
39 Output Total Total (Q) Price Revenue Cost 1 $20.00 $2.50 i of 2 $15.00 $5.00 $10.00 $7.50 4 $5.00 $10.00 The table above shows demand and cost information for a firm that has market power and can set its price. If the firm can only charge one price to all its customers (it cannot price discriminate), it's profit maximizing Output (Q) is: Select one: a. 1 b. 3 C. 4 d. 2
If this is a market for a monopolistically competitive firm selling hair products. Choose all that apply. A It will lose $20 per day if it stays in the market B It will charge a price of $4 C If it stays in the market, there will still be a dead weight loss D Its profit maximizing quantity is 30 units
A shoe store in a monopolistically competitive market has a demand curve for their shoes given by P = 81-0.5Q. The variable costs of producing a shoe are given by the equation VC = Q2 + 3Q and so the marginal costs are MC = 20 +3. a) What is the shoe store's profit - maximizing output and price? If the shoe store is in a long-run equilibrium, what must its fixed costs be?
The diagram at right shows the structure of cost and demand facing a monopolistically competitive 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 sign where appropriate.) In the long run, firms will OA. exit, shifting the demand facing the remaining firms to the right until the firms earn an economic profit. B. exit, shifting the demand facing the remaining firms to the right until the firms earn a normal profit. OC. enter, shifting the demand facing the remaining firms to the left until the firms earn a normal profit. OD. enter, shifting the demand facing the remaining firms to the left until the firms earn an economic profit. $14 $13 $12 $11 $7 MR 15 20…

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