The following table represents a monopolistically competitive market and the short-run costs of a firm in this market: TC P MC TR MR 40 60 1 50 54 2 59 51 3 70 48 4. 82 45 95 42 110 39 7 128 36 151 33 179 30 (a) Complete the table, showing your work. (b) What is the profit-maximizing choice of output and price for this firm? How much profit does this firm make? Will new firms enter this industry in the long run? Explain. (c) What is the main difference in the assumptions we make between a perfectly competitive market and a monopolistically competitive market? How does this difference impact the outcomes of the market (price, quantity, profit) for each firm? Discuss.

The following table represents a monopolistically competitive market and the short-run costs of a firm in this market: TC P MC TR MR 40 60 1 50 54 2 59 51 3 70 48 4. 82 45 95 42 110 39 7 128 36 151 33 179 30 (a) Complete the table, showing your work. (b) What is the profit-maximizing choice of output and price for this firm? How much profit does this firm make? Will new firms enter this industry in the long run? Explain. (c) What is the main difference in the assumptions we make between a perfectly competitive market and a monopolistically competitive market? How does this difference impact the outcomes of the market (price, quantity, profit) for each firm? Discuss.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 11PAE

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Which form is a monopolistic competitor operating in the long run?
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