antastique 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 is above marginal cost. Firms earn zero profit in the long run. Price equals average total cost in the long run.
antastique 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 is above marginal cost. Firms earn zero profit in the long run. Price equals average total cost in the long run.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
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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 is above marginal cost.
Firms earn zero profit in the long run.
Price equals average total cost in the long run.
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