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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Q. 2
WataDine is one of a city’s many restaurants that serve lunch and dinner in a monopolistically competitive market. Assume WataDine, as a typical restaurant in the city, is currently producing the profit-maximizing output level, and earns positive short-run economic profit. (a) How is monopolistic competition similar to each of the following market structures? (i) Perfect competition (ii) Monopoly (b) WataDine is currently earning short-run economic profits. Draw a correctly labeled graph for WataDine in short-run equilibrium and show each of the following. (i) The profit-maximizing quantity, labeled QM (ii) The profit-maximizing price, labeled PM (c) Given that WataDine is currently earning short-run economic profits, what will happen to each of the following in the long run? (i) WataDine's economic profit. Explain. (ii) WataDine's demand curve for its restaurant meals. (d) Assume WataDine is in long-run equilibrium. (i) Is WataDine taking advantage of its economies of scale? Explain.…
D and E
Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the profit maximizing level of output, what will be the firm's revenue? 45 40 35 30 25 20 15 10 5 Select one: a. $64 b. $80 c. $120 MC1 d. $0 because the firm will shut down ATC₁ AVC1 MR1 D₁ 1 2 3 4 5 6 7 8 9 хо
Question 16 Monopolistic Competition -- Questions 16-20 refer to Figure 6-2 below. This figure depicts a situation in a monopolistically competitive market. Figure 6-2 105 100- MC 95 90+ ATC 70 65 60 55 30 45 40 35 30 25 20 15 10+ MR Demand +++ s 10 is 20 25 30 35 40 4s s0 ss 60 6s 70 7s so as 90 95 10010s1101is120 Refer to Figure 6-2. What quantity will the monopolistically competitive firm charge in this market?
Question 36 There are complete barriers to entry in monopolistic competition. True False
Which of the following is not a difference between perfect competition and monopolistic competition? The monopolistic competitor faces a downward sloping demand curve. Long run economic profit. Excess capacity. Mark up over marginal cost. « < Question 6 of 40 A Moving to another question will save this response. Close Window
Please provide accurate and correct answers to both questions without explanation. Thank you for your assistance.
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
(Figure: The Market for Designer Boots in Monopolistic Competition IV) Use Figure: The Market for Designer Boots in Monopolistic Competition. A positive economic profit will be earned if the profit-maximizing price is in panel Price, cost XXX G; (A) H; (B) (a) O I; (C) O F; (A) ATC Quantity (per period) Price, (b) cost ATC Quantity (per period) Price, (c) cost ATC Quantity (per period)
Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $70 $65 $60 $55 MC es $50 $45 $40 АТС $40 $32.50 $35 $30 $25 S20 $20 S14.30 $25 $15 Demand MR $10 $5 0.5.0 1.5.0 2.5.0 3.5. 4.50 5.5.0 6.5.0 Quantity Price and costs
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