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Question 4 25/ 25 pts Why does the monopolistic competitor earn a normal profit in the long run? low barriers to entry and exit product differentiation can drive firms out of the market price and quantity effect intense competition Be able to add the complete explanation for this question on the short answer part of the test. Short run firms earning economic profit: Firms are earning an economic profit incentivizing other firms to enter this market in the long run as there are no or COMMENTS FILES RUBRIC 1l O <
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The table shows the total revenue of the 50 firms in the candy and confectionery industry.
Total revenue
Firm
What additional information would you need about the candy and confectionery industry to be sure that it is an
example of monopolistic competition?
(dollars)
Sugar Mountain
Sugar + Spice
Simply Candy
Fudge Factory
Next 10 firms (each)
Next 16 firms (each)
Next 20 firms (each)
1,450
1,300
To be sure that the candy and confectionery industry is an example of monopolistic competition, we would need
additional information about
800
650
200
O A. the market demand curve
150
O B. the price elasticity of supply
125
OC. the type of technology used in production
O D. product differentiation, barriers to entry, advertising, and competition on price, quality, and features
Industry
11,100
O E. the average total cost of each firm
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F14
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Question 25
(a)
(b)
MC
Price
ATC
MC
ATC
Price
MR
AMR
Quamity
Quantity
(c)
(d)
Price
Price
MC
MC
ATC
ATC
.D
Quantity
Quantity
If the above images are representative of the average firm in a monopolistically competitive market, for which diagram would you expect firms to exit the market?
(a)
(b)
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Question 16
Which one of the following statements is correct?
a) Under monopolistic competition, marginal revenue
b) Under monopolistic competition, marginal revenue
c) Under monopolistic competition, marginal revenue
d) Under oligopoly, marginal revenue is equal to avera
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ICE (Dollars per scooter)
3. How short-run profit or losses induce entry or exit
Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand
curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus.
Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive
company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss
500
450
400
360
200
250
200
150
400
50
MC-
ATC
MR
Demand
150 200 250 300 360 400 450 500
QUANTITY (Scooters)
+
Monopolistically Competitive Outcome
Profit or Loss
(?)
Given the profit-maximizing choice of output and price, Citrus Scooters is earning
sellers in the industry relative to the long-run equilibrium amount.
Now consider the long run in which scooter manufacturers are free to enter and…
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Question 1(i) Use the graph below to explain the output, profit and loss conditions formonopolistically competitive firms. Show your work where appropriate inreference to the Graph.
(ii) With examples, examine the barriers to business entry for imperfectcompetition firms
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Microeconomics 2463
Assignment Part 1 - Chapter 15
The market for toothpaste is a monopolistically competitive market. The graph below depicts the demand
and marginal revenue curves for this market and the marginal cost and average total cost curves of a
monopolistically competitive supplier.
Price
$10.50
$9.00
$7.50
$6.00
$4.50
$3.00
$1.50
b. Price at the Q in a.
c. TR (PxQ)
20
d. TC (ATC x Q)
e. Profit (TR-TC)
40
Name
MR
60
1
Using the above chart, identify the profit-maximizing quantity of toothpaste that the monopolistically
competitive firm should produce, and the per-tube price that it should charge.
a. Quantity (chart is in thousands)
.MC.
ATC:
Demand
120 140
80 100
Quantity (thousands of tubes)
f. What will happen in this industry in the long-run based on profits in part e?
g. What will happen to the demand curve for this particular firm in the long-run based on part f?
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Market Entry Strategy
Thinking Through Marketing Strategy
Pretend that you are the Chief Marketing Officer at Alibaba.
Thus far, Ali Baba has grown there business throughout most of the world, but
they have not yet penetrated the US market.
Assignment:
Outline a detailed marketing strategy for Alibaba that will help them penetrate
the US market.
Be sure to cover the following:
I.
Target market and why.
I.
A single product category you think is most appropriate, and why.
II.
Pricing strategy (skimming, status quo or penetration) and why.
IV.
Promotion strategy: How you will convince an American consumer
to buy from Alibaba
V.
Distribution (you do not need to cover)
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Typed plz and asap please provide me q quality solution maintain accuracy in your answer take Care of plagiarism
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Scenario: You have been invited for a job interview to Armenian Tobacco, a company producing and
selling cigarette products in Armenia and abroad. Before going to interview you discussed it with your
friends and you all agreed that the cigarettes' market structure can be considered as monopolistically
competitive. Upon arriving to the interview you receive a short questionnaire, as follows:
Armenian Tobacco is developing its strategy for the next few years, and among others we would like to
know your opinion about the following points:
1) We would like to increase our advertising expenditures abroad as we believe it will enable us to
gain more market share in our overseas operations. What is your opinion about advertising
expenditures and their economic purpose?
2) There is a certain threat that in the future the World Health Organization will make all the
countries to remove any labeling from cigarette boxes – all the boxes of all cigarettes area going
to be the same without any…
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Question 21
Markup
Ос
What is the level of profit for the monopolistically competitive firm in the above diagram?
positive
zero
negative
impossible to determine
MC
ATC
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Price
Graph(a)
Price
Graph(b)
Quantity
Quantity
Price
Graph(c)
Price
Graph(d)
Quantity
Quantity
Refer to Figure#3. With respect to a monopolistically competitive industry, which of the diagrams illustrates the impact of the leaving market of the existing firms which earn negative profit?
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Español
The pie chart below shows the percentage of total revenue that a publisher receives from various types of publications. Use this chart to
answer the questions below.
(a) Which category accounts for approximately one-fifth of the
publisher's total revenue?
Select One
(b) Approximately what percentage of the total revenue comes
from Magazines and Paperbacks combined?
Textbooks
Cookbooks
Write your answer as a multiple of 10% - that is, 10%, 20%,
30%,
Nonfiction
Рoetry
Magazines
(c) If the revenue from Cookbooks is 20% of the total revenue,
approximately what percentage of the total revenue comes from
Poetry?
Paperbacks
10%
20%
40%
50%
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Question 2: Monopolistic and Oligopoly firms
Question 1
Use the graph below to explain the output, profit and loss conditions for monopolistically competitive firms. Show your work where appropriate in reference to the Graph.
Firm Lan T-shirt monopolistic competitive firm
With examples, examine the barriers to business entry for imperfect competition firms
1
HI5003 Economics for Business: First Tutorial Submission Question, T1 2020
Assessment Question Week 8:
Marco-economics:
Measuring the size of the economy
Question 2
The table below is extracted from Goodland Republic Bureau of Statistics records for 2016 -2017. Use the information to answer the questions that follow.
Goodland Economy 2013 and 2018
Examine the status of the economic welfare in Goodland Republic in 2018 based on your GDP deflator, nominal GDP and Real GDP. Also, explain the reasons why it is necessary to calculate real GDP. Show your work.
Assessment Question…
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Question 16
Which one of the following statements is correct?
a) Under monopolistic competition, marginal revenue is lower than average revenue.
b) Under monopolistic competition, marginal revenue is equal to average revenue.
c) Under monopolistic competition, marginal revenue is greater than average revenue.
d) Under oligopoly, marginal revenue is equal to average revenue.
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Question 2
For the following statement given below, indicate whether you tend to agree, disagree, or are
uncertain about the truth of the statement, and explain your reasoning. Graphical analysis is
encouraged.
"Monopolies and oligopolies have more market power than firms in monopolistically
competitive and perfectly competitive industries."
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Only question #4 and #5
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If this graph represents the market for Sonoran hotdogs in Tucson , which statement is true?
A
The market is monopolistically competitive and at its long run equilibrium
B
The market is a monopoly and firms are earning positive profits
C
The market is an oligopoly and firms are earning positive profits
D
The market is perfectly competitive and firms are suffering losses
E
The market is monopolistically competitive and not at its long run equilibrium
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Suppose there are only two automobile companies, Ford and Chevrolet. Ford believes that Chevrolet will match any price it sets, but Chevrolet too is interested in maximizing profit. Use the following price and profit data to answer the following questions.
Ford's Chevrolet's Ford’s Chevrolet’s
Selling Selling Profits Profits
Price Price (millions) (millions)
$ 4,000 $ 4,000 $ 8 $ 8
4,000 8,000 12 6
4,000 12,000 14 2
8,000 4,000…
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The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run.
Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow.
Quantity
Price
Total Cost
Marginal Cost
Total Revenue
Marginal Revenue
Average Total Cost
(Board games)
(Dollars per game)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
(Dollars)
1
15.00
11
2
13.00
20
3
12.00
27
4
10.00
36
5
7.00
45
6
5.00
60
7
3.00
70
8
1.00
104
Under monopolistic competition, a typical firm will produce _______ board games at a price of $_____ per board game in the short run.
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Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive
company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.
500
450
Monopolistically Competitive Outcome
400
350
ATC
Profit or Loss
300
250
200
150
100
50
0
PRICE (Dollars per bike)
MC
MR
Demand
400
0
50
100
450 500
150 200 250 300 350
QUANTITY (Bikes)
Given the profit-maximizing choice of output and price, the shop is making
shops in the industry relative to the long-run equilibrium.
Now consider the long run in which bike manufacturers are free to enter and exit the market.
profit, which means there are
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Monopolistic competition creates inefficiency because of the
Price
markups and excess capacity. The graph depicts the situation
$100
for a hypothetical monopolistically competitive firm. The
90
curves included in the graph are demand (D), marginal
80
revenue (MR), average total cost (ATC), and marginal cost
ATC
(MC). Use the graph to find the requested values.
70
60
What is the size of the markup on the price?
50
40
markup: $
30
What is the size of the excess capacity?
20
MC
MR
10
units
excess capacity:
20
30
40
50
60
70
80
90
10
100
Quantity
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Related Questions
- no handwritten notesarrow_forwardNote:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardThe table shows the total revenue of the 50 firms in the candy and confectionery industry. Total revenue Firm What additional information would you need about the candy and confectionery industry to be sure that it is an example of monopolistic competition? (dollars) Sugar Mountain Sugar + Spice Simply Candy Fudge Factory Next 10 firms (each) Next 16 firms (each) Next 20 firms (each) 1,450 1,300 To be sure that the candy and confectionery industry is an example of monopolistic competition, we would need additional information about 800 650 200 O A. the market demand curve 150 O B. the price elasticity of supply 125 OC. the type of technology used in production O D. product differentiation, barriers to entry, advertising, and competition on price, quality, and features Industry 11,100 O E. the average total cost of each firmarrow_forward
- Only typed answerarrow_forwardF14arrow_forwardQuestion 25 (a) (b) MC Price ATC MC ATC Price MR AMR Quamity Quantity (c) (d) Price Price MC MC ATC ATC .D Quantity Quantity If the above images are representative of the average firm in a monopolistically competitive market, for which diagram would you expect firms to exit the market? (a) (b)arrow_forward
- ===>Please give me proper explanation Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardPlease solve it by yourself with proper explanation and calculation don't use aiarrow_forwardQuestion 16 Which one of the following statements is correct? a) Under monopolistic competition, marginal revenue b) Under monopolistic competition, marginal revenue c) Under monopolistic competition, marginal revenue d) Under oligopoly, marginal revenue is equal to averaarrow_forward
- Please give me correct and incorrect answer explanation Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardICE (Dollars per scooter) 3. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss 500 450 400 360 200 250 200 150 400 50 MC- ATC MR Demand 150 200 250 300 360 400 450 500 QUANTITY (Scooters) + Monopolistically Competitive Outcome Profit or Loss (?) Given the profit-maximizing choice of output and price, Citrus Scooters is earning sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to enter and…arrow_forwardQuestion 1(i) Use the graph below to explain the output, profit and loss conditions formonopolistically competitive firms. Show your work where appropriate inreference to the Graph. (ii) With examples, examine the barriers to business entry for imperfectcompetition firmsarrow_forward
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Recommended textbooks for you
- Economics Today and Tomorrow, Student EditionEconomicsISBN:9780078747663Author:McGraw-HillPublisher:Glencoe/McGraw-Hill School Pub Co
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co