The monopolistically competitive firm represented in the graph is in:$$11.40$10.20$7.500520 630MCATCFirm's DemandMRQuantity along-run equilibrium since it is earning zero profit.b short-run equilibrium since it is earning zero profit.C short-run equilibrium, but not long-run equilibrium since it is earning positive economic profit.Your answerd long-run equilibrium, but not short-run equilibrium since it is earning positive economic profit.

The monopolistically competitive firm is in long-run equilibrium. BecauseIn long-run equilibrium, a…

Answered: The monopolistically competitive firm…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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microeconomics . This firm will maximize profit by producing at output level: (pick the correct letter) f g h j
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A perfectly competitive firm produces the level of output at which MR=MC on the rising portion of the firm’s marginal cost curve. At that output level, it has the following costs and revenues: TC = $830,000 VC = $525,000 TR = $428,000 Given that the firm produces the level of output at which MR=MC, calculate the amount of profit (loss) this firm earns. is it Profit=TR-TC?
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Lauren grows grapes. Her average variable cost (AVC), average total cost (ATC), and marginal cost (MC) of production are illustrated in the figure to the right. Assume the market for grapes is perfectly competitive and that the market price is $2.00 per crate. Characterize Lauren's economic profits. Assume she produces such that she maximizes profits in the short run. Using the rectangle drawing tool, shade in Lauren's economic profits. Attach the correct label to indicate whether she is earning a profit (Profit) or incurring a loss (Loss). Carefully follow the instructions above, and only draw the required object Quantity (crates) Price ($ per crate) 0.00 1.00- 2.00- 3.00- 4.00- 5.00- 6.00- 7.00- 8.00- 9.00- 10.00- 11.00- AVG 6 ATC र 9 2 12.00 00
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If the market price of a product is $10 that lie between the minimum average variable cost $8 (AVC) and minimum average total cost $15 (ATC) of a firm, that firm will:___________ a) always shut down. b) always continue to produce.c) produce in the short run but shut down in the long run. d) produce in the long run but shut down in the short run. e) make positive economic profits.

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