A pure monopolistic firm knows the following about its costs and revenue. The firm would like to maximize profit and has hired consultant for advice. Price Q of Output Total Revenue Total Cost Total Fixed Cost 13 700 TR? TC? 3,100 Average Total Cost Average Variable Cost MC MR 26 AVC? : Total Cost Number Total Revenue Number Average Variable Cost Number What is the value of the profit or loss (-) at the current output ( include the - sign if it's a loss) Number Consultant's Advice: As a consultant, what advice would you give to this firm:(Choose ONE answer from the following) 1. Firm is profit maximizing/loss minimizing 2. Firm should reduce quantity of output 3. Firm should increase quantity of output 4. Firm should shutdown operations 5. The given number set is inconsistent Number

A pure monopolistic firm knows the following about its costs and revenue. The firm would like to maximize profit and has hired consultant for advice. Price Q of Output Total Revenue Total Cost Total Fixed Cost 13 700 TR? TC? 3,100 Average Total Cost Average Variable Cost MC MR 26 AVC? : Total Cost Number Total Revenue Number Average Variable Cost Number What is the value of the profit or loss (-) at the current output ( include the - sign if it's a loss) Number Consultant's Advice: As a consultant, what advice would you give to this firm:(Choose ONE answer from the following) 1. Firm is profit maximizing/loss minimizing 2. Firm should reduce quantity of output 3. Firm should increase quantity of output 4. Firm should shutdown operations 5. The given number set is inconsistent Number

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 19P: Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to...

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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?
If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not?
Aside from advertising, how can monopolistically competitive films increase demand for their products?
Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firmâ€”Tile King. Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as Tile King to avoid the possibility of a price war. The pnce charged by Tile King is $20,000. Ajax has the following short-run cost curve: TC=800,0005,000Q+100Q2 Compute the marginal cost curve for Ajax. Given Ajaxs pricing strategy, what is the marginal venue function for Ajax? Compute the profit-maximizing level of output for Ajax. Compute Ajaxs total dollar profits.
What is the relationship between product differentiation and monopolistic competition?
How does a monopolistic competitor choose its profit-maximizing quantity of output and price?