Which of the following is a requirement for both perfect competition and monopolistic competition? a) Consumers have all accurate information about firms, product and prices b) these are low barriers to enter and exit the market c) all firms sell the exact same product d) the producers have absolutely no control over the price they cha

Which of the following is a requirement for both perfect competition and monopolistic competition? a) Consumers have all accurate information about firms, product and prices b) these are low barriers to enter and exit the market c) all firms sell the exact same product d) the producers have absolutely no control over the price they cha

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The diagram below illustrates a firm under monopolistic competition: (a) Label the curves Curve I, Curve II, Curve III, Curve IV. (b) Graphically identify profit maximizing output and price (c) Explain how the amount of profit is defined at the maximum-profit output. II II IV Q
Provide an example of an industry that is monopolistically competitive. Regarding average total cost at the profit maximizing output, what is the difference between perfect competition and monopolistic competition ?
What are the major characteristics of a firm competing under conditions of monopolistic competition?
In the long run the selling price of a monopolistically competitive firms product is equal to he minimum per unit cost of production .do you agree with this statement ?if not then why not?
The figure below shows the demand curve (DD), the marginal revenue curve (MR), and the cost curves of a monopolistic competitor. Price A 3 MR QE B) Loss incurred by the producer C) Consumer surplus D) Deadweight loss ATC 25) A monopolistically competitive firm A) earns low but positive economic profits B) earns high economic profits C) earns zero economic profits D) incurs losses DD Quantity 24) Refer to the figure above. What does the region ABDC indicate? A) Economic profit MC in the long run.
The demand curve of a monopolistically competitive form is Select one: Perfectly inelastic Perfectly elastic Highly, but not perfectly elastic Relatively, but not perfectly inelastic None of the answers are correct
Which of the following is not true of a monopolistically competitive firm? a. The firm will not likely earn an economic profit in the long run. b. The firm will maximize profits by producing where MR = MC. c. The firm will produce an efficient quantity where average total cost is minimized.
The graph shows the short-run cost, revenue, and perceived demand curves for all firms in the convenience store market, which is a monopolistically competitive market. Price ($) Marginal cost Number of firms will remain the same. Number of firms will decrease to one firm. Number of firms will increase. Number of firms will decrease. Demand Quantity What will happen to the number of firms in the industry as it moves from the short run to the long run? Average cost Marginal revenue
a) draw a graph for monopolistic competition market that is in long run equilibrium marking the price and quantity. Explain why the firm will be at that price and quantity. b) State the conditions that establish the market structure monopolistic competition, and state how the market adjusts to long run equilibrium and what is different about long run equilibrium for this market structure.
Consider the market of monopolistic competition. Which of the following options is correct in the long run? 500 300 ATC 250 X 200 150 MC MR 150 PRICE (Dollars per scooter) 450 400 350 100 50 0 0 50 100 Demand 200 250 300 350 400 450 QUANTITY (Scooters) 500 Few firms will enter, and few will exit in the long run. More firms will enter the industry in the long run. Neither firm will enter nor exit in the long run. More firms will exit from the industry in the long run.
a) Using the following graph state the price and quantity the firm will be at if the monopolistic competition market is in long run equilibrium. Explain why the firm will be at that price and quantity. Price P1 MC ATC B P 2 P3 P4 P5 MR D Q2 Q3 Quantity b) State the conditions that establish the market structure monopolistic competition, and state how the market adjusts to long run equilibrium and what is different about long run equilibrium for this market structure.
Suppose sellers in a monopolistically competitive market are experiencing negative economic profit, which of the following scenarios would best reflect the change facing existing sellers as the market adjusts to the long run equilibrium?