MC ATC MR 10 15 Quantity Figure 5 shows the demand, marginal revenue, and cost curves for a monopolistic competitor. In the short run, the firm will a) produce 15 units at a price of $24 per unit. O b) produce 10 units at a price of $36 per unit. C produce 15 units ner unit Price
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- How can a monopolistic competitor tell whether the price it is charging will cause the firm to earn profits or experience losses?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 graphicallyA 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
- How do perfectly competitive firms, monopolists, monopolistically competitive firms, and cartels choose the profit -maximizing quantity? A) The quantity at which average total cost is minimizedB) The quantity at which total revenue and total cost are equalC) The quantity at which total revenue is maximizedD) The quantity at which marginal revenue and marginal cost are equalCOURSE: MICROECONOMICS 2 - MONOPOLY AND PRICE DISCRIMINATION TYPE 2 - PRICE PER CONSUMPTION BRACKETA monopolistic firm has estimated its inverse demand function as P = 200 - q and its marginal cost (MC) equal to 30.a) Estimate excess profit, with a SINGLE PRICE SYSTEM. Graphicb) Estimate excess profit if firm discriminates by bracket, defining following brackets: (0, 50), (51 to 100) (101 to 150). PLEASE GRAPHIC EACH CASE22. If a monopolistic competitor is prodocing an eutput for which marginal revenue is$40and marginal cast is 532 to maximize profits the finm should A. desrast the level of output. B. keep the level of eutput eonstaet. C. coctinue to make 58 per unit D. increzese the level of output.
- 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?Assume a firm engaging in selling its product and promotional activities in monopolisti ccompetition 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 representationEconomics all parts please definetlu u get upvote and good rating 1) wich of the following is not an assumption of the theory of monopoly? Group of answer choices there is only one seller in the industry the seller sells a product for which there are no close subsitutes the seller has high variable costs there are high barriers to entry into the industry 2) which of the following is the best example of a barrier to entry into a monopolistic industry? Group of answer choices diminishing returns economies of scale comparative advanage high elasticity of demand 3) a price searcher Group of answer choices faces a horizontal demand curve is a seller that searches for good employees and pays them low wage is a seller that searches for the best price at which to buy its nonlabor inputs is a seller that has the ability to control, to some degree the price of the product it sells 4) the marginal revenue curve lies above the demand curve for a Group of answer choices monopoly firm…
- COURSE: MICROECONOMICS 2 - MONOPOLY IN DURABLE GOODSA monopolistic firm has estimated its inverse demand function as P = 200 − 0.5 Q + 40*(1/UL) with a increasing marginal cost (MC) estimated to be 10 Q. (a) Estimate effect on firm's extraordinary profit if it changes useful life (UL) of its product from 8 years to 5 years. b) What will happen to selling price?How does advertising impact monopolistically competitive firms? (a) advertising always causes monopolistically competitive firms to experience lower average costs (b) it either causes a firm's perceiveddemand curve to become more elastic, or advertising causes demand for the firm's product to increase.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.