Draw and label the D, MR, MC, and ATC curves for a monopolistically competitive firm in the situations of (i) the firm making a positive economic profit, and (ii) the firm in long-run equilbrium. Label the quantity the firm will choose in each case qmc and the price they will charge Pmc.
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Draw and label the D, MR, MC, and
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- Candak Corporation produces professional quality digital cameras. The market for professional digital cameras is monopolistically competitive. Assume that the inverse demand curve faced by Candak (given its competitors’ prices) can be expressed as P = 5,000 - .2Q and Candak’s total costs can be expressed as TC = 20,000,000 + .05Q2. Answer the following questions. A. What price and quantity will Candak choose? B. Is this likely to be a long-run equilibrium for Candak Corporation? Why or why not? If not, what is likely to happen in the market for professional digital cameras, and how will it affect Candak?For market failure unit (market power). In the long run graph for monopolistic competition, firms are no longer earning abnormal profit due to low barriers to entry as there are more similar goods on the market, lowering demand, causing them to earn normal profits, however, shouldn't that cause MR to be equal to AR (demand curve), similar to the normal profit in perfect competition? Why is MR less than AR here when it is earning normal profit?Question: Which of the following market structures is characterized by a large number of firms, homogeneous products, free entry and exit, and perfect information? a) Monopoly b) Oligopoly c) Monopolistic competition d) Perfect competition Please give me correct answer and full explanation. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
- Explain the importance of advertising in monopolistically competitive industries . How does this compare with the importance of advertising in perfectly competitive industries?True / False4. Advertising must be socially wasteful because advertising simply adds to the cost of producing a product.5. In the long run, firms in monopolistically competitive markets produce at the minimum of their average total cost curves.Assume that the smartphone manufacturing industry is in monopolistic competition. Assume that smartphone manufacturing firms are earning normal profits in the long-run. Illustrate a correctly labeled model for a firm in this industry.
- The mobile phone industry is monopolistically competitive, and is described by Diagram A and Diagram B above. Samsung pursued a successful differentiation strategy and, as a result, is making a positive economic profit in the short run. PART A: Which diagram (Diagram A or Diagram B) represents Samsung’s situation in the short run and long run, respectively? PART B: Referring to the short-run diagram you selected in part a, identify Samsung’s short-run profit maximising output and explain how Samsung decided to produce this output. PART C: What is the price of each mobile phone? How much profit is Samsung making in the short run? Explain. PART D: Identify the area that represents consumer surplus. PART E: Explain how the other firms producing mobile phones would react to Samsung’s short-run positive economic profit. What would be the long-run impact on Samsung’s output, price and profit? Illustrate your answer with the long-run diagram you identified in part A. PART F:…Identify a perfectly competitive, monopolistically competitve, oligopoly, and monopoly firm that you have recently purchased a good/service from. Make sure to relate your answers to the market characteristics. Analyze why a perfectly competitive firm is only able to earn normal profits in the long run compared to the short run.Determine whether the statements is true, false, or uncertain. If the statement is false or uncertain, please correct the statement to make it true. If the statement is true, please explain your answer briefly. Include a short definition of any CAPITALIZED term. 1. In a long-run equilibrium, both perfectly competitive markets and MONOPOLISTIC COMPETITIVE MARKETS have price equal to average total cost. (Define monopolistic competition)
- Perfect Competition The market for peanut butter in Nutville is monopolistically competitive and in long-run equilibrium. The following graph shows the marginal-cost (MC) curve and the average-total-cost (ATC) curve for a peanut-butter-producing firm. It also shows the demand curve and marginal-revenue (MR) curve faced by a firm operating in a monopolistically competitive environment. One day, consumer advocate Skippy Jif discovers that all brands of peanut butter in Nutville are identical. Thereafter, the market becomes perfectly competitive and again reaches its long-run equilibrium.A short-run monopolistically competitive firm has the demand curve, where P = 20 - 2Q, and marginal revenue, where MR = 20 – 4Q. The firm also incurs a constant marginal and average total cost of MC = ATC = $10. a) Determine the optimal output of the firm. b) What is the price at the optimal output level? c) Calculate the profit or loss for the firm at the optimal output level. d) What will happen to this firm in the long run?In the short run, a monopolistically competitive firm calculates that marginal cost is $6.00, average total costs are $4.00, and marginal revenue is $3.00. The firm is charging a price of $6.00 and producing 200 units of output. How much profit is the firm making? What output recommendation would you make as the company economist? 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.
