Not use ai please The graph shows the demand, marginal revenue, marginal cost, and average total cost curves ofLa Bella Pizza, a firm in monopolistic competition.Draw a point at the firm's profit-maximizing price and quantity. Label it 1.Draw a point at minimum average total cost. Label it 2.Draw a horizontal arrow that shows the firm's excess capacity.Draw a shape to show deadweight loss. Label it DWL.The firm's excess capacity ispizzas a day.In the long run, the number of pizza producersOA. increasesB. does not changeOC. decreases-Price (dollars per pizza)16.00-QMCQ14.00-12.00-10.00-8.00-ATCDMR6.00+050100 150 200Quantity (pizzas per day)250(0,14)>>> Draw only the objects specified in the question.

The graph is drawn below: Profit-Maximizing Price and Quantity (Label 1):For…

Answered: The graph shows the demand, marginal…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 6P

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Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to charge to maximize profits. The first two columns in Table 10.5 provide the price and quantity for the demand curve for treatments. The third column shows its total costs. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?
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Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $40 $35 $30 MC ATC $25 $20 $17 A $15 $10 4.40 $5 3.25 MR Demand 3 4 5 7 8 9 10 Quantity Instructions: Round your answers to 2 decimal places. a. What is total revenue for this firm? $56.88 b. What is total cost for this firm? $ $58.88 c. What is this firm's economic profit? d. This firm is most likely In long-run ]equilibrlum because Instructions: In order to recelve full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For Incorrect answer(s). click the option twice to empty the box. ? P= ATC. ? P> MC. ? MR = MC. 2 the firm is experlencing normal profits. 2 the firm is experlencing economic profits. 7 demand exceeds marginal revenue. Price and costs
Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $40 $35 $30 MC ATC $25 $20 $17.50 $15 $10 $4.40 $5 3.25 MR Demand 1 2 3 4 5 6 7 8 9 10 Quantity Instructions: Round your answers to 2 decimal places. a. What is total revenue for this firm? b. What is total cost for this firm? c. What is this firm's economic profit? d. This firm is most likely in (Click to select) V equilibrium because Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. ? MR = MC. ? the firm is experiencing economic profits. 2 the firm is experiencing normal profits. ? P> MC. ? demand exceeds marginal revenue. ? P= ATC. Price and costs
The graph shows the demand curve and marginal revenue curve of Java Time, Inc., a producer of espresso machines in monopolistic competition. Draw the firm's marginal cost curve if Java Time produces 125 espresso machines a week. Label it Draw a point at the profit-maximizing quantity and price. if average total cost at the profit-maximizing quantity is $100 a machine, what is Java Time's economic profit? Java Time's economic pro t is $ Selected: none ON 804 604 0 Price and cost (dollars per machine) 25 50 75 100 125 150 1175 200 225 250 2 Quantity (espresso machines per week) >>> Draw only the objects specified in the question ate Clear ?
The graph shows the demand curve, marginal revenue curve, and marginal cost curve of Big Splash, Inc., a producer of wading pools in monopolistic competition. Draw a point at the firm's profit-maximizing price and quantity. Draw a vertical arrow that shows the firm's markup. Draw a shape that shows the firm's economic profit. Big Splash's markup is $ a pool. Big Splash's excess capacity is Big Splash's economic profit is $ 360 340- 320 300- 280- 260- 240- 220- 200- 180- 160- 140- 120- 100- 80- 60- 40+ Price and cost (dollars per pool) 0 10 MC 20 ATC D MR 30 40 50 60 70 80 Quantity (pools per week) >>> Draw only the objects specified in the question. Q Q
The graph shows the demand, marginal revenue, marginal cost, and average total cost curves of La Bella Pizza, a firm in monopolistic competition Draw a point at the firm's profit-maximizing price and quantity. Label it 1. Draw a point at minimum average total cost. Label it 2. Draw a vertical arrow that shows the firm's markup. Label it Markup. Draw a horizontal arrow that shows the firm's excess capacity. Label it Excess capacity. La Bella's markup is $ a pizza. La Bella's excess capacity is The market is in equilibrium because O A. short-run; the quantity produced is less than the efficient scale O B. long-run; economic profit is zero O C. long-run; the quantity produced is the quantity at which marginal cost equals marginal revenue O D. long-run; price exceeds marginal revenue pizzas. 16.00- 14.00- 12.00- 10.00- 8.00- 6.00+ 0 Price (dollars per pizza) Q MC Q 50 ATC D MR 100 150 200 Quantity (pizzas per day) >>> Draw only the objects specified in the question. 250
Exercise A.13. Explain and graph the long-run equilibrium of a monopolistic firm and that of a perfectly competitive firm. Compare both situations in terms of the level of production, prices and economic efficiency.
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Part II | The graph below shows a monopolistically competitive firm in the short run. Price and Cost 8 9 8 20 0 100 MR 200 300 400 500 600 700 800 Output MC 9. What is the firm's profit-maximizing price and quantity? 10. How much profit does that firm make at that price and quantity? 900 ATC -d-p
Draw a diagram of the long-run equilibrium in a monopolistically competitive market. How is price related to average total cost? How is price related to average total cost? How is price related to marginal cost?
The graph shows the demand curve, marginal revenue curve, and cost curves of Bob's Best Burgers, a firm in monopolistic competition. Draw an arrow at the profit-maximizing quantity to show the firm's markup. Because firms (of which Bob's is one) are expect firms to the burger market. we would ⒸA. breaking even; enter OB. incurring an economic loss; increase demand in ⒸC. making an economic profit; enter OD. incurring an economic loss; exit 6.50 5.00- 4.50- 4.00- 3.00 Price and cost (dollars per burr 2.50 MC 50 ATC D MR 100 150 Quantity burgers per day) >>> Draw only the objects specified in the question. ✔ 250 800

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