The diagram below shows selected cost and revenue curves for a firm in a monopolistically competitive industry. Price ($) 13 7 FIGURE 11-4 90 Quantity 91 MR D MC LRAC Refer to Figure 11-4. Which of the following best describes this industry if all firms have the same cost and revenue curves and are producing output of q ? O firms are earning positive profits and new firms will enter the industry until all firms are operating at their minimum LRAC O all firms will try to minimize costs and move toward minimum LRAC O firms are incurring losses and firms will exit this industry O firms are earning zero profits and there is no incentive for firms to enter or leave the industry O all firms are earning positive profits and there is no incentive for firms to enter or exit the industry

The diagram below shows selected cost and revenue curves for a firm in a monopolistically competitive industry. Price ($) 13 7 FIGURE 11-4 90 Quantity 91 MR D MC LRAC Refer to Figure 11-4. Which of the following best describes this industry if all firms have the same cost and revenue curves and are producing output of q ? O firms are earning positive profits and new firms will enter the industry until all firms are operating at their minimum LRAC O all firms will try to minimize costs and move toward minimum LRAC O firms are incurring losses and firms will exit this industry O firms are earning zero profits and there is no incentive for firms to enter or leave the industry O all firms are earning positive profits and there is no incentive for firms to enter or exit the industry

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

please answer parts c,d and g
Demonstrate with diagram under what circumstances a P.C. firm would quit (shut down )the industry ? How does the entry and exit of firms help earn normal profit for a monopolistic competitive firm in the long run? Please show graph using Ms word.
PTICE and COST $40 30 23 20 10 MC ATC ATC MR AR=D 150 200 Quantity per day 0:13 Question 11 (10 points) (Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC' Before the innovation reduced the cost, the firm's maximum economic profit was: $0. $30. $750. $4,500.
The graph below shows the Chamberlin model. The profit maximization level of output for a monopolistically competitive firm is S D (Short Run) ATC 0000 0 OC. OA. OB. OD. mr A B C D мс Quantity
Explain the profit-maximizing output leveland profitof a monopolistic firm by drawing a graph. What are the advantages of internal economies of scale? Explain them briefly. What is the meaning of ‘acceptable loss’for a perfectly competitive firm ? Draw a graph and explain. How can we increase the Total Revenue of productsby using elasticity? Explain them briefly.
A monopolistically competitive firm in a long-run equilibrium will likely produce which of the following? A. a technically efficient amount of outputB. less than a technically efficient amount of output and less than an allocatively efficient amount of outputC. more than a technically efficient amount of output but less than an allocatively efficient amount of outputD. an allocatively efficient amount of production.E. less than a technically efficient amount of output and more than an allocatively efficient
QUESTION 12 The figure is drawn for a monopolistically competitive firm PRICE 140 123.33 90 Table b 56.67 100 133.33 QUESTION 14 QUANTITY MC MR ATC Demand Refer to Figure. If this firm's decides to produce and sell at the profit maximizing level then what will be their O a. $8,887.78. O b.$5,000.00. OC-$5,000.00. O d. 50. QUESTION 13 A perfectly competitive firm produces where O a marginal cost equals price, while a monopolist produces where marginal cost exceeds price Ob price exceeds marginal cost, while a monopolist produces where marginal cost equals price Oc marginal cost equals price, while a monopolist produces where price exceeds marginal cost O d.marginal cost exceeds price, while a monopolist produces where marginal cost equals price.
3. Below are data for a monopolistically competitive firm. Quantity $MC SAC SMR. 60 82 72 50 71 64 44 64 56 4 48 59 48 50 57.2 40 6. 52 56.3 32 7 54 56 24 60 56.5 16 a. Refer to the information above to answer this question. What output will this profit-maximizing firm produce? b. Refer to the information above to answer this question. What is true if the firm is producing at the profit -maximizing output
Slove the attachment
5- 3- 1- 20 40 60 80 100 Q MR Using the above graph, This profit-maximizing firm will produce Blank 1 units. -MC 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.) Blank 1 Blank 2 Blank 3 Blank 4 Add your answer Add your answer Add your answer Add your answer
Study Tools ins ess Tips ss Tips PRICE (Dellars per engine) 288 RSS #RR 100 50 30 20 10 MO 0 0 10 ATC MR Demand 20 30 40 50 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unt Cost Decause this market is a monopolistically competitive market, you can tell that it is in long-run equilibrum by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimum
Table 17-4 Only two firms, ABC and XYZ, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost. Price Quantity Total Demanded Revenue (Dollars per unit) (Units) (Dollars) 28 26 130 24 10 240 22 15 330 20 20 400 18 25 450 16 30 480 14 35 490 12 40 480 10 45 450 8 50 400 55 330 4 60 240 2 65 130 70 Refer to Table 17-4. If this market were perfectly competitive instead of oligopolistic, what quantity would be produced? а. 25 b. 50 С. 35 d. 70 O O O O