MC $19 16 13 10 100 160 180 210 Quantity Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm will realize an economic
Q: Explain & depict the LongRun equilibrium for a monopolistically competitive firm.
A: Monopolistic competition consist of large number of buyers and sellers, selling differentiated but…
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Q: $100 $90 MC ATC $80 $70 $60 $50 $40 $30 Demand P $20 $10 MR $0 10 20 30 40 50 60 Output (Q) The firm…
A: * SOLUTION :- The OPTION A is correct answer.
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A: The three key attributes of monopolistic competition is listed below. Large number of sellers:…
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Q: (i) Use the graph below to explain the output, profit and loss conditions for monopolistically…
A: Below is the edited graph:
Q: If ATC>P, then a profit maximizing firm in a monopolistically competitive market earns economic…
A: Monopolistically competitive market refers to the market where many firms exist in the market and…
Q: Which of the following statements are true for a typical firm in this market given the transition…
A: Perfect competition is a market structure that sells an identical product, there exist many firms…
Q: Price (per box) MC 70 50 25 D MR Quantity (boxes) 350 500
A:
Q: 1 price $1.40 $1.00 $0.95 $0.85 $0.60 MR MC ATC D 0 300 500 900 1000 Quantity The short-run…
A: In the monopolistically competitive market, a firm act as a monopolist in the short-run as its…
Q: The diagram on the right shows the short-run demand curve (0), marginal revenue curve (MR), average…
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A:
Q: Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The…
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Q: Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
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A: Monopolistic competition is a market structure whereby there are large number of buyers. The goods…
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A:
Q: Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically…
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Q: 1200 1100 ATC 1000 900 800 700 600 500 MC Demand 400 300 200 MR 100 5 10 15 20 25 30 35 40 45 50 55…
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Q: please answer parts c,d and g
A: In order to answer the given questions, we first reproduce the given diagram.
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A: Profit is maximized when firms produce output where marginal revenue is equal to marginal cost and…
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A: Here answer is 15 $
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A: Monopolistic competition is a market structure in which many sellers sell differentiated products.
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Q: When a monopolistically competitive industry is in long-run equilibrium: choose correct and explain…
A: Monopolistically competitive industry has firms which have freedom to entry and exit.
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- What two rules does a perfectly competitive firm apply to determine its profit-maximizing quantity of output?You are hired as a consultant to a monopolisticallycompetitive firm. The firm reports the followinginformation about its price, marginal cost, andaverage total cost. Can the firm possibly bemaximizing profit? If not, what should it do toincrease profit? If the firm is maximizing profit, is themarket in a long-run equilibrium? If not, what willhappen to restore long-run equilibrium?a. P < MC, P > ATCb. P > MC, P < ATCc. P 5 MC, P > ATCd. P > MC, P 5 ATCHenry Potter owns the only wcU in town that pro-ducesclean drinking water. He faces the follO\\•ingdemand, marginal revenue, and marginal cost curves:Demand: P • 70 - QMarginal Revenue: MR • 70 - 2Q~arginal Cost: MC • lO + Qa. Graph these three curves. Assuming thatMr. Potter maximizes profit, what quantity docshe produce? What prioc does he charge? Showthese rcsuiiS on your graph.b. Mayor George Bailey, concerned about water con~sumcrs_. is considering a price ceiling that is10 percent below the monopoly price derived inpart (a). What quantity would be demanded atthis new price? Would the profit-maximizingMr. Potter produce that amount? Explain. (Hi11t:1hink about marginal cost.)c. George's Uncle Billy says that a price ceiling is abad idea because price ceilings cause shortages.Is he right in this case? What size shortage wouldthe prioc ociling create? Explain.d. George's friend Clarence, who is even more con~cerncd about consumers, suggests a price ceiling50 percent below the…
- Sleek Sneakers Co. is one of many firms in the marketfor shoes.a. Assume that Sleek is currently earning short-runeconomic profit. On a correctly labeled diagram,show Sleek’s profit-maximizing output and price,as well as the area representing profit.b. What happens to Sleek’s price, output, and profitin the long run? Explain this change in words, andshow it on a new diagram.c. Suppose that over time consumers become morefocused on stylistic differences among shoe brands.How would this change in attitudes affect eachfirm’s price elasticity of demand? In the long run,how will this change in demand affect Sleek’s price,output, and profit?d. At the profit-maximizing price you identified inpart (c), is Sleek’s demand curve elastic or inelastic?ExplainI need help with econ multiple hw questions asap! 87) When a monopolistically competitive firm is in long-run equilibrium, what is the case? A. Price equals marginal revenue. B. Price is equal to average total cost. C. Price equals marginal cost. D. Price is equal to minimum average total cost. 86)a) Explain & depict the LongRun equilibrium for a monopolistically competitive firm. **Draw and upload graphs to depict the long-run
- TRUE OR FALSE IN LONG RUN EQUILIBIRUM A MONPOLISTIC COMPETITIVE FIRM WILL MOST LIKELY PRODUCE A LEVEL OF PURPUR FOR WHICH ORICE EQUALS AVERAGE TORAL COSTWhat is Mars inc competitive advantageAs CEO of firm A, you and your management team face the decision ofwhether to undertake a $200 million R&D effort to create a new megamedicine.Your research scientists estimate that there is a 40 percentchance of successfully creating the drug. Success means securing aworldwide patent worth $550 million (implying a net profit of $350million). However, firm B (your main rival) has just announced that it isspending $150 million to pursue development of the same medicine (bya scientific method completely independent of yours). You judge that B’schance of success is 30 percent. Furthermore, if both firms aresuccessful, they will split equally the available worldwide profits($275 million each) based on separate patents.a. Given its vast financial resources, firm A is risk neutral. Should firm Aundertake the $200 million R&D effort? (Use a decision tree to justifyyour answer.)b. Now suppose that it is feasible for firm A to delay its R&D decisionuntil after the result of B’s…