Question C 2. Complete the table below.MarginalRevenueQuantityPriceTotalTotal CostProfitMarginalCostRevenue1003,0002,6002,2001,8001,400802016008070200206002400240060404040602020020801600-4020-1000100-8020-3000a. Calculate the profit-maximizing output, price, and profit.Since the marginal revenue is just exceeds the marginal cost at the output level 40 units, the profit maximizing output is 40, units, profit maximizing price is60 and the maximum profit is $600.b. Will other firms enter this market and compete with this firm?Since there is a profit in the current market situation, the firm can enter in to the market.c. Sketch a graph showing long run equilibrium in monopolistic competition.

Monopolistic is a form of market in which there are large number of firms which are selling the…

Answered: c. Sketch a graph showing long run…

Business

Economics

c. Sketch a graph showing long run equilibrium in monopolistic competition.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

See similar textbooks

Related questions

Q: ** The following graph shows the marginal revenue (MR), demand (D), marginal cost (MC) and average…

A: 1. Optimal output occurs where Marginal Revenue is equal to the Marginal Cost. It is depicted by Q*.…

Q: Draw a diagram depicting a firm that is making a profit in a monopolistically competitive market.

A: A market is the collection of buyers and sellers. There are different forms of markets based on…

Q: What is the edge of perfect competition to monopolistic competition? What is way more better?…

A: Perfect competition: It is a market structure where there exist a large number of buyers and a large…

Q: If you have a graph showing a monopolistic competitive situation in which demand shifts to the left…

A: There is a relationship between the marginal revenue and the demand curve. Marginal curve is half to…

Q: Explain monopolistic competition. How is it similar to perfect competition? How does it differ…

A: Monopolistic competition is the mixture of Monopoly and competition. It is the market fairly large…

Q: 100.00 90.00 80.00 70.00 MC 60.00 50.00 40.00 ATC 30.00 20.00 10.00 MR 300 Quantity (rooms per day)…

A: Monopolistic competition is the market structure where large numbers of buyers and seller exist…

Q: 1. A monopolistic competitor engages in advertising to a. Provide information about its good or…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: What is monopolistic competition? 30 words

A: The structure of markets where differentiation and classification are done on basis of competition…

Q: Draw the diagram of a firm in monopolistic competition that is in the long run and another diagram…

A: Meaning of Monopolistic Competition: The term monopolistic competition refers to the situation…

Q: the profit-maximizing output level and profit of a monopolistic firm by drawing a graph give an…

Q: O airplane manufacturing; a monopolistically competitive O corn; a perfectly competitive O car…

A: Monopolistically market:- Monopolistic competition describes a sector where many enterprises…

Q: Monopolistic competition resembles perfect competition.In what ways are they similar and what makes…

A: The two market situations have the subsequent points of similarities: The number of firms is large…

Q: Monopolistic Competition. Please explain detail with the diagram

A: Monopolistic competition is a market structure which have combines elements of both monopoly and…

Q: MC AC UN \MR, \MR D, Q, Q. D. Quantity (a) Profit induces entry; shift to zero profit Price ($)

A: Given the diagram of monopolistically competitive firm, initially the equilibrium occurred at point…

Q: Draw and explain a diagram to show the long-run equilibrium in a monopolistically competitive…

Q: The graph shows the demand, marginal revenue, marginal cost, and average total cost curves of La…

A: The firm maximizes its profit or minimizes its losses at the point where the marginal cost of…

Q: AUse the graph below to explain the output, profit and loss conditions for monopolistically…

Q: Monopolistic Competition On the next few slides be sure to answer the following questions. What is…

A: Since we only answer up to 3 sub-parts, we will answer the first three. Please resubmit the question…

Q: (i) Use the graph below to explain the output, profit and loss conditions for monopolistically…

A: Below is the graph:

Q: At what output rate (s) is economic profit equal to zero..

A: In the above figure the output level at which economic profit equal to 0 is qg .

Q: What is perfect competition? Distinguish it to monopolistic competition

A: Perfect Competition in actual world is a imaginary market that is it does not exists in the real…

Q: How does the demand curve for a monopolistic competitive firm looks like? Graph it.

A: Monopolistic competition- It is an imperfect competition in which many producers sell products that…

Q: The restaurant business in town is a monopolistically competitive industry in long-run equilibrium.…

Q: 25 ATC 25 ÁTC 20 15 DD 10 5 MR 10 20 30 40 50 60 70 80 90

A: A monopolistic competitive firm will be in equilibrium when its profit is maximized or loss is…

Q: Refer to the above figure. A long-run equilibrium in monopolistic competition is pictured by اختر…

A: Answer: Correct option: option b (panel B) Explanation: In monopolistic competition, the firms earn…

Q: image attached

A: In the monopolistic competitive market structure, there exists a large number of firms, and every…

Q: what is monopolistic competition? (50 WORDS)

A: Structure of the market is classified on the basis of number of buyers and sellers, product…

Q: Give an example and explain the profit-maximizing output level and profit of a monopolistic firm by…

A: A monopolistic firm is the single seller in the market, so it has market power, and is able to set…

Q: Why demand curve in monopolistic competition market is downward sloping?) For the toolbar, press…

A: Monopolistic competition is a market situation which posses following characteristics. 1. Large…

Q: a. With the aid of a diagram explain how a monopolist determines how much output to produce and what…

A: Market Structure depicts how firms are being differentiated and also categorised based upon types of…

Q: What are the assumptions of a Monopolistic Competition market structure? Briefly distinguish the…

A: An industry in monopolistic competition is one composed of an enormous number of little firms who…

Q: Why monopolistic competition is less efficient than perfect competition. Explain your answei.

A: A market is a place or a region where the buyers and sellers interact with each other to exchange…

Q: The graph shows the demand, marginal revenue, marginal cost, and average total cost curves of La…

A: Here, the given graph shows the cost, revenue and demand function of La Bella Pizza firm is a…

Q: 16. Graph: A firm in monopolištic Monopolistic Competition AC MC $46 $30 MR 50 What is the firm's…

A: Profit is the difference between total revenue and total cost. Profit=Total Revenue-Total Cost Total…

Q: [SELECT ONE] The graph below shows data for the production of Christmas hampers for an individual…

A: A monopoly is a market structure where a single firm dominates the market and sells a unique…

Q: Slove the attachment

A: Monopolistic competition is a type of market in which there are many firms who produces…

Q: (i) Use the graph below to explain the output, profit and loss conditions for monopolistically…

A: Below is the edited graph:

Q: Which of the following markets best fits thedefinition of monopolistic competition?a. wheatb. tap…

A: The market is a place where service and product transactions take place. In making decisions, it is…

Q: How is monopolistic competition like monopoly? How is monopolistic competition like perfect…

A: The market is a gathering of the people on any specific area or online to purchase and sell of goods…

Q: 1. Consider the following graph: Price (dollars per cup) $6.00 MC ATC 3.50 Profit 2.50 Demand 0 1 2…

Question

Question C

2. Complete the table below.
Marginal
Revenue
Quantity
Price
Total
Total Cost
Profit
Marginal
Cost
Revenue
100
3,000
2,600
2,200
1,800
1,400
80
20
1600
80
70
200
20
600
2400
2400
60
40
40
40
60
20
200
20
80
1600
-40
20
-1000
100
-80
20
-3000
a. Calculate the profit-maximizing output, price, and profit.
Since the marginal revenue is just exceeds the marginal cost at the output level 40 units, the profit maximizing output is 40, units, profit maximizing price is
60 and the maximum profit is $600.
b. Will other firms enter this market and compete with this firm?
Since there is a profit in the current market situation, the firm can enter in to the market.
c. Sketch a graph showing long run equilibrium in monopolistic competition.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is exclusive dealing? How might it reduce competition and when might it be acceptable?
Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural Monoploy
What might some of the negatives of deregulation be?
Suppose demand for a monopolys product falls 50 that its profit-maximizing price is below average variable cost. How much output should the film supply? Hint: Draw the graph.
What is predatory pricing? How might it reduce competition, and why might it be difficult to tell when it should be illegal?
How is the perceived demand curve for a monopolistically competitive film different from the perceived demand curve for a monopoly or a perfectly competitive film?
Urban transit systems, especially those with rail systems, typically experience significant economies of scale in operation. Consider the transit system data in Table 11.4. Note that the quantity is in millions of riders.
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.
Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not?
If the transit system were regulated to provide the most allocatively efficient quantity of output, what output would it supply and what price would it charge? What subsidy would be IIECESSEIIY to insure this efficient provision of transit services?
How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?
If public utilities are a natural monopoly, what would be the danger in deregulating them?