р P4 P3- P₂+ PI + - - MR QI [[[[२८]] Q3 The monopolistically competitive firm in the figure above MC ATC charges a lower price and produces more output than would a perfectly competitive firm. charges a price premium of P4-P3 and has excess capacity of Q3-Q1 when compared to perfect competition. can earn positive economic profits in the long run. produces output at the firm's efficient scale None of the above is true.

р P4 P3- P₂+ PI + - - MR QI [[[[२८]] Q3 The monopolistically competitive firm in the figure above MC ATC charges a lower price and produces more output than would a perfectly competitive firm. charges a price premium of P4-P3 and has excess capacity of Q3-Q1 when compared to perfect competition. can earn positive economic profits in the long run. produces output at the firm's efficient scale None of the above is true.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 11PAE

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Suppose a company creates its own differentiated type of sneaker and is thus considered a monopolistically competitive firm. This firm has a constant marginal cost curve. For each unit of output that the monopolistically competitive firm produces, it costs an additional $50$⁢50. The firm's marginal revenue curve is MR=80−6QMR=80−6⁢Q, where Q is the quantity produced. The firm's perceived demand curve is P=80−3QP=80−3⁢Q. What is the monopolistically competitive firm's profit-maximizing output and price? Write the exact answer. Do not round.
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?
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.
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 graphically
You are employed at a monopolistic company as a research (pricing) economist and you are deriving the behavior of two markets based on demand curves given by:D1(p1) = 50 - p1D2(p2) = 50 - 2p2 Assume that the marginal cost is constant at $8 a unit. (a) If it can price discriminate, what price should it charge in each market in order to maximize profits?(b) If it can’t price discriminate, what price should it charge?
Question 10A monopolistic producer of two goods, G1 and G2, has a joint total cost function TC = 5Q1 + Q1Q2 + 5Q2Where Q1 and Q2 denote the quantities of G1 and G2 respectivel. If P1 and P2 denote the corresponding prices then the demand equations areP1 = 40 − Q1 + Q2P2 = 20 + 2Q1 − Q2a) Find the total revenue function for each goodb) Find the profit function for the firmc) Find the maximum profit if the firm is contracted to produce a total of 12 goods of either typed) Find the price that the firm is supposed to charge for each good.e) Estimate the new optimal profit if the production quota increases by 2 units
1. A monopolistic producer of two goods, G1 and G2, has a total cost function TC = 5Q1 + 10Q2 where Q1 and Q2 denote the quantities of G1 and G2 respectively. If P1 and P2 denote the corresponding prices then the demand equations are P1 = 50 − Q1 − Q2 P2 = 100 − Q1 − 4Q2Find the maximum profit if the firm’s total costs are fixed at Gh100. Estimate the new optimal profit if total costs rise to Gh101.
COURSE: 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 CASE
Consider a monopolistically competitive market with NN firms. Each firm's business opportunities are described by the following equations: Demand: Q=100N−PQ=100N−P Marginal Revenue: MR=100N−2QMR=100N−2Q Total Cost: TC=50+Q2TC=50+Q2 Marginal Cost: MC=2QMC=2Q As N rises, the demand for each firm's product: rise or fall? How many units does each firm produce? a: 25 b: 400/N c: 25/N d: 25N What price does each firm charge? a: 75N b: 125/N c: 75/N d: 100/N How much profit does each firm make? a: 1,250/N*2−50 b: 2,500/N*2−50 c: 50+625/N*2 d: 1,875/N*2 In the long run, how many firms will exist in this market?
Please no written by hand solutions BCPC 208: QUANTITATIVE METHODS ASSIGNMENT 8 1. A firm is a monopolistic producer of two goods G_{l} and G_{2} The prices are related to quantities Q_{1} and Q_{2} according to the demand equations P_{1} = 50 - Q P_{2} = 90 - 2O_{2} If the total cost function is TC = Q_{1} ^ 2 + 2Q_{1}*Q_{2} + Q_{2} ^ 2 (a) Determine the firm's profit function, (b) Find the values of Q_{1} and Q_{2} which maximises profit by applying first and second order conditions. (e) Find the maximum profit and deduce the prices that maximises profit 2. A monopolistic producer of two goods, G_{1} and G_{2} has a joint total cost function TC = 5Q_{1} + Q_{1}*Q_{2} + 5Q_{2} where Q_{1} and Q_{2} denote the quantities of G_{1} and G_{2} respectively. If P_{1} and P_{2} denote the corresponding prices, then the demand equations are Q_{1} = 40 - P_{1} + Q_{2} Q_{2} = 20 + 2Q_{1} - P_{2} (a) Find the total revenue function for each good. (b) Find the profit function for the firm (c)…
The Poster Bed Company believes that its industry can best be classified as monopolistically competitive. An analysis of the demand for its canopy bed has resulted in the following estimated demand function for the bed:P = 1760 - 12QThe cost analysis department has estimated the total cost function for the poster bed asTC = (1/3)Q3 - 15Q2 + 5Q + 24,000a. Calculate the level of output that should be produced to maximize short-run profits. b. What price should be charged? c. Compute total profits at this price-output level. d. Compute the point price elasticity of demand at the profit-maximizing level of output. e. What level of fixed costs is the firm experiencing on its bed production? f. What is the impact of a $5,000 increase in the level of fixed costs on the price charged, output produced, and profit generated?
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.