£/unit 100 90 SRMC 80 70 60 50 40 30 SRAC 20 D= AR 10 MR 10 20 30 50 60 70 100 Units 40 80 90 Figure 12 Demand and cost curves for a firm in monopolistic competition Figure 12 shows the demand curve, D, marginal revenue curve, MR, and short run marginal cost (SRMC) and average cost (SRAC) curves for a firm in monopolistic competition. Using Figure 12, determine the maximum level of profit the firm can make
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- What type of market environment do firms producing this product of honda operate in? Perfectly competitive, monopolistic competition, monopoly, or oligopoly? Why? What are the inputs used in production? Which of the inputs are fixed and which are variable? How do you expect this product to develop in the future? What types of governmentregulations are there regarding this product? For instance, is it taxed or subsidized?25. When monopolistically competitive firms advertise they hope to _________ and __________. When monopolistically competitive firms advertise they hope to _________ and __________. decrease market share; increase average total cost increase market share; increase average total cost increase market share; decrease average total cost decrease market share; decrease average total costcritically disnguish between own-revenue and equitable share for a municipality
- 19- Which of the following would be classified as a differentiated product produced by a monopolistic competitor? Group of answer choices natural gas Channel No. 5 electricity tap waterUsing the chart, determine which bundle price will maximize net profit. Please show the steps to support yourconclusion.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.
- Reference: Ref 11-2 (Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC'. Suppose further that after the innovation reduced the cost to ATC', it costs a total of $18 per unit to produce 170 units per day. If the firm charges a price equal to marginal cost, total net profit will be: a. $1,190. b. $3,400. c. $1,700. d. $3,060. 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.Only typed answer and don't use chatgpt otherwise I will downvote the answer Reference: Ref 11-2 (Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC'. Suppose further that after the innovation reduced the cost to ATC', it costs a total of $18 per unit to produce 170 units per day. If the firm charges a price equal to marginal cost, total net profit will be: a. $1,190. b. $3,400. c. $1,700. d . $3,060.Question Firms A and B are two firms supplying products in two separate differentiated goods markets. Equations (1) and (2) give the total cost functions of the two firms: - Firm A: TC = 2Q -----------------------------(1) - Firm B TC = 10 + 2Q -------------------------(2) Each firm has the ability to produce a maximum quantity of 80,000 units in ten batches of 8,000. Isoprofit curves valuing at $34,000 and $ 60,000 on both firms Question : Use the information given about firm A above and use appropriate diagrams/figures to explain how the equilibrium will change if it’s cost of production rises to $5?*Please answer this question asap with diagrams and explanation *
- List and discuss the key characteristics of organi-zational buying that make it different from con-sumer buyingGeneral Motors, the automobile manufacturing company, recently ran an advertisement for its cars. It offered a 21% discount on its suggested retail price on all of its cars only to “current competitive owners” - anyone who is currently owning or leasing a NON-General Motors car. Customers must show proof of ownership (or lease) of a 2001 model year or newer non-GM vehicle dated at least 30 days prior to the sale of a new General Motors car. 1) How does General Motors benefit from selling cars at a 21% discount to non-GM owners? Explain why this pricing strategy increases General Motors’ revenues and profits versus selling all General Motors cars at one price. Be sure to use economic concepts used in the class for your answer. 2) Why does General Motors require proof of ownership (or lease) of a non-GM vehicle? Explains how this benefits General Motors.Q. 4 The following total cost (TC) relation holds in both short run and long run for a monopolistically competitive firm TC=100+3Q+0.03Q^2 Where Q is the quantity of output TC function includes a risk adjusted normal rate of return on the firm’s investment In the short run, total revenue (TR) relation for this monopolistically competitive firm is given by: TR=11Q-0.01Q^2 Due to a high degree of product differentiation maintained by the firm, the firm demand curve in the long run is a parallel shift of its short-run demand curve. To maximise total profit in the short run, the firm should produce ___________ units of output ; To maximise total profit in the long run, the firm should produce _________ units of output. a.50;100 b. 100;50 c.100;58 d. 50;58