5) If this local restaurant is selling the optimal number of plates of scrambled eggs per day at the optimal price per plate, how much profit does it earn fromscrambled eggs per day?$100$350$50$500 A small, local restaurant in St. Augustine, FL, serves scrambled eggs for breakfast. The market for breakfast scrambled eggs is monopolisticallycompetitive. The following graph shows the demand, MR, MC, and ATC curve of this local restaurant. Use the graph to answer questions 3 to 7.Price (P)per plate$1075320MCMR50 80 100ATCNumber of plates ofscrambled eggsserved per day (Q)

Here, the given graph provides information about a firm in monopolistically competitive market.…

Answered: A small, local restaurant in St.…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter24: Monopolistic Competition, Oligopoly, And Game Theory

Section: Chapter Questions

Problem 7QP

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Exercise A.4. A company operating in a market of monopolistic competition has an inverse demand curve for its product: P=315-3q, where q is the number of units produced of the good and P its price. The total cost of production of this company is given by: TC(q)=q²+75q+4000. a) To maximize profits, how many units of the good should you sell? b) What price should I charge? (c) What benefits would it reap? (d) Given the above information, how much would you have to reduce fixed costs for longterm equilibrium to occur? Represent graphically
Exercise A.3. Does a monopolistic competitor produce too much or too little compared to the most efficient level? What practical considerations make it difficult for public authorities to solve this problem?
The profit maximizing, monopolistically competitive firm depicted is 1. earning zero economic profit 2. earning positive economic profit 3. in long run monopolistically competitive equilibrium 4.earing negative wconomic profit 5. more than one altarive is correct 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.
Exercise 5.1 Describe with the help of graphs the long-term equilibrium of a monopolistically competitive market. What is the relationship between price and ATC? And between the price and the MC?
A monopolistically competitive firm produces ________ output than a perfectly competitive firm with the same cost curves.The resulting equilibrium price under monopolistic competition is ________ than the equilibrium price under perfect competition. Question 1Answer a. more; lower b. less; higher c. less; lower d. more; higher
MIcro: The company “Mike Broonie” operates in the market of monopolistic competition. Just now, the company weekly produces and sells 100 units of pillows for £12 each. The average total cost to produce the pillows doesn’t depend on the output, being £10 per unit. Having evaluated the price elasticity of demand for its product, the company concluded that demand is inelastic at the moment. a. What indicator characterizes the price elasticity of demand? What formula (or formulas) one can use to calculate this indicator? Choose any number for this indicator that, under the conditions specified in the case, could characterize the price elasticity of demand for the company “Mike Broonie”. b. Imagine that the owner of the company wants to increase the price of the company’s product. How will it affect sales, revenue, and profit (will each of these indicators increase, decrease, or remain the same)? Give here theoretically substantiated forecast. To increase the number of points…
Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). 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. Given the profit-maximizing choice of output and price, the shop is making(zero,positive,neative) profit, which means there are(an equal number of, fewer,more) 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. Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply. Firms are not price takers. Price…
A profit -maximizing producer in the monopolistically competitive industry,currently in long run equlibrium. Draw a labeled profit-maximization graph include labels of relevent cost and revenues curves (MC,ATC,MR,AR=D) Identify the profit maxizing quantity as Qpmp and price as Ppmp Identify the socially optimal level of output as Qso
Assume a firm engaging in selling its product and promotional activities in monopolistic competition face short-run demand and cost functions as Q = 20-0.5P and TC= 4Q2 -8Q+15, respectively. Having this information a) Determine the optimal level of output and price in the short run. b) Calculate the economic profit (loss) the firm will obtain (incur). c) Show the economic profit (loss) of the firm in a graphic representation.
Refer to Figure 15.2. If We Do Hair maximizes profits as a monopolistically competitive firm, its total costs are a ) $1,200. b ) $660 c ) $800. d ) $960.
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 outpu
Question 8888 M 22-Which of the following alternatives is typical in a monopolistic market? a.all of before mentioned alternatives. b.Price always exceeds marginal revenue c. Firm is a price setter d.Price is always greater than marginal cost Full explain this question and text typing work only thanks

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