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- \IV hat is true of a monopolistically competitive marketin long-run eqUilibrium?a. Price is greater than margi nal cost.b . Price is equal to marginal revenue.c. Firms make positive economic profits.d. Firms produce at the minimum of average total cost.Draw a digram showing the effect of a new firm entering a monopolistically competitive market. Your diagram should include new and old demand, marginal revenue, profit, MC, and ATC curves.Draw a diagram illustrating the case of a firm in monopolistic competition making a profit. Label the demand curve D, the marginal revenue curve MR, the marginal cost curve MC, and the average total cost curve ATC. Show the quantity the firm will choose to produce and the price it will charge and mark that Q1and P1 respectively.
- a) Explain & depict the LongRun equilibrium for a monopolistically competitive firm. **Draw and upload graphs to depict the long-runPlease DRAW & write neatly (no cursive) showing all work. You are studying a restaurant, that sells only pasta, and operates in a monopolistically competitive environment. This restaurant sells pasta made from its own brand of pasta called Gino's Pasta. This restaurant faces its own individual demand curve given by: QD = 120 − 30pNow suppose that in this example, the restaurant has the total costs defined by: TC = 40 + 2Q Draw a figure that includes:a. The Demand Curveb. The MR Curvec. The MC Curved. The ATC Curve.The graph below summarizes the demand and costs for a firm that operates in a monopolistically competitive market.Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.a. What is the firm’s optimal output? unitsb. What is the firm’s optimal price?$ c. What are the firm’s maximum profits?$ d. What adjustments should the manager be anticipating?multiple choice Demand will decrease over time as new firms enter the market. Demand will increase over time as firms exit the market. Demand will remain unchanged over time.
- Fortune Bakery sells cookies in a monopolistically competitive market. To maximize profit, what quantity should Fortune Bakery produce and what price should it charge? Suppose Fortune Bakery is in the long run equilibrium. Explain how much economic profit Fortune Bakery is making.What differentiates monopolistic competition from a monopoly?a A seller operating in a monopolistically competitive market no longar facet a downward-sloping demand curve,b. There are more seller,c. Firms can enter the market selling similar but not identical productd. (b) and (e)e. all of the aboveWhich industry or industries below might operate in a monopolistically competitive market? a. a barber shop b. a cerain brand of coffee c. a hotel (it is the only one int own) d. a pateneted lifesaving medicine e. both c and d
- Draw a diagram containing the long-run average and marginal cost curves, the demand curve facing the firm, and the marginal revenue curve for a profit-maximizing monopolistically competitive firm, at the long-run equilibrium. Make your diagram large and label all curves, axes, and points. Pls do fast!!! Draw a Graph!!! Consider the monopolistic competition model (with the CC and PPcurves). Suppose:a. S = 100b. b = 1c. c = 2d. F = 10Solve for the equilibrium number of firms n and the price, P.Now suppose c falls to 1. Solve for the new number of firms, n, and the new price, P.Tell a story for what happens.