Q: Sarah's profit-maximizing amount of output is sandwiches/day.
A: The condition for profit maximizing level of output in monopolistic competitive market is at where:-…
Q: In doorknob manufacturing industry, you observed that the firms are making losses. In the long run…
A: In doorknob industry, when the firms are making losses, some firms will exit the market. In the…
Q: Do entry and exit occur in the short run, the long run, both, or neither?
A: In the short run, the firms have one or more fixed factors of production. The firms cannot change…
Q: An accountant and an economist are looking at a firm’s records and market situation. The accountant…
A: The money spent to purchase the factors of production to purchase the goods is termed as the cost of…
Q: When would a seller possibly decide to exit the industry over the long run? What should product…
A:
Q: Why can't firms enter the market in the short-run?
A: There are various types of market structures which have different characteristics of the number of…
Q: In the short run, what quantity does Lite and Kool produce, what price does it charge, and does it…
A: Monopolistic competition refers to a market structure in which many firms sell differentiated…
Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…
A: Perfectly competitive market: It is a market structure where there exists a large number of buyers…
Q: What are three short-run outcomes in the perfect competition?
A: In the short-run, the perfect competitive firms, can have three outcomes.
Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?
A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…
Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…
A: Perfect competition is a market structure in which there are many buyers and sellers. The price is…
Q: Are Shoppe and Lazada considered as a perfect competition? Why do you think that is?
A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…
Q: Why do a firm's profit disappear in the long run?
A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…
Q: What is profit
A: Profit = Revenue - costs
Q: WHY SOME FIRMS MIGHT BE ABLE TO CONTINUE TO MAKE AN ACONOMIC PROFIT IN THE LONG RUN?
A: A monopoly occurs when a single person or corporation serves as the exclusive supply of a certain…
Q: Why would a firm that incurs losses choose to produce rather than shut down? Why could this choice…
A: In short run firm exhibits return to factor where only one factor is variable and another factor is…
Q: How do you define 'profit
A: The main objective of the firm in whether competitive or imperfect competition market is Profit…
Q: What are the advantages of pure competition?
A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…
Q: How did you get the perfect competition values
A: Perfect competition market is that market where large number of buyers and sellers of the commodity…
Q: Suppose a resturant in a city making above normal profit in the short run. How will the market…
A: A restaurant is operating in a monopolistic competitive market structure.
Q: what are the maximum profits this firm can earn?
A: A competitive market is a typical market that answers the demands for goods and services. A…
Q: Sterling runs a donut shop which which is being operated in a perfectly competitive market where…
A: Firms in perfectly competitive market, are price taking firms because there are a large number of…
Q: Price = $20, quantity = 400 units, unit cost = $15,implicit costs $ = 4,000. What does economic…
A: Given: Price = $20, Quantity = 400 units, Unit cost = $15, Implicit costs $ = 4,000 To find: econom
Q: When will a business shut-down in the short-run?
A: Short-run: - it is a short time period in which some factors of production are variable and some are…
Q: Are condominiums considered imperfect competition or perfect competition in the market?
A: Market structures can be classified into four major categories. The following states the market…
Q: Why does exit occur?
A: When the firms earn less than their total cost of production, they make loss. If existing firms in…
Q: If the firms are earning abnormal profit how will the number of firms in industry change?
A: According to the given question In Simple words we can say that the abnormal profits are the profits…
Q: What does it mean to be operating a firm in the "long run?"
A: "Since you have asked multiple questions, we will only first question for you. If you have any other…
Q: Aji owns a rental space in New York and is thinking of opening a restaurant in that space. An…
A: Introduction: The accounting profit can be calculated by subtracting the explicit cost from the…
Q: At his profit maximizing output, what is the total profit earned by Tim?
A: Answer: A monopolistically competitive firm maximizes its profit where the marginal revenue (MR) is…
Q: What is profit maximizing output?
A: The profit maximizing output is determined by equating marginal revenue with marginal cost.The…
Q: . Which is the other name that is given to the average revenue curve?
A: The average revenue curve represents the revenue per unit for different quantities of output.
Q: What are the requirements for a perfect competition market?
A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…
Q: Can you give examples of companies with perfect competition?
A: The markets refer to the place where the buyers, and sellers interact. In the markets, the sellers…
Q: Bubba's Bait and Tackle is maximizing profits, so it must be producing where :حد د واحدا i. MR = 0.…
A: Any non profit organisation works for profit maximization. Profit can be calculated as the…
Q: What is the firms profit or loss?
A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…
Q: In a business where, fixed costs are very high (i.e. the production of a new Music CD, or the…
A: Marginal cost refers to the additional cost of production incurred in the process of increasing…
Q: How do you calculate marginal cost and marginal revenue?
A: Marginal revenue: Marginal revenue refers to the additional revenue that made by selling of one…
Q: Draw a graph to show the breakeven point, shutdown point and supply curve.
A: Answer: Break-even point: break-even point is the point where the total revenue is equal to the…
Q: Explain profit ?
A: The average sales price multiplied by the number of units sold equals revenue. Net income is…
Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?
A: Answer - In the long run where the every input can vary and as in the long run where firms can make…
Q: What is Perfect competition?
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: How does a change in the response rate affect profit?
A: A response rate refers to a rate that shows the number of people or participants who have responded…
Q: What tells you the profit a company makes on each item it sells? ROA EPS O ROS O ROE
A: Profit is the difference between the tital cost incurred in the production process and the tital…
Q: To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the…
A: At break even, total revenue is equals to total cost.
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- Make a case for why monopolistically competitive industries never reach long-run equilibrium.Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large firm—Tile King. Ajax produces a multiheaded tunnel wall scrubber that is similar to a model produced by Tile King. Ajax decides to charge the same price as Tile King to avoid the possibility of a price war. The pnce charged by Tile King is $20,000. Ajax has the following short-run cost curve: TC=800,0005,000Q+100Q2 Compute the marginal cost curve for Ajax. Given Ajaxs pricing strategy, what is the marginal venue function for Ajax? Compute the profit-maximizing level of output for Ajax. Compute Ajaxs total dollar profits.What price will the monopolistically competitive firm charge in this market? A. $15 B. $400 C. $500 D. $700
- $19 16 13 10 0 320. O 600. 100 280. MC 160180 210 Quantity MR Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profits will be: ATC -D JhyRefer to Figure 15.2. If We Do Hair maximizes profits as a monopolistically competitive firm, its total costs are a ) $1,200. b ) $660 c ) $800. d ) $960.Gouge-em Cable Company is the only cable television servicecompany licensed to operate in Backwater County. Most of itscosts are access fees and maintenance expenses. These fixed costs total $640,000 monthly. The marginal cost of addinganother subscriber to its system is constant at $2 per month.Gouge-em’s demand curve can be determined from the datain the accompanying table. a. What price will Gouge-em charge for its cable services?What are its profits at this price?b. Now suppose the Backwater County Public UtilityCommission has the data and believes that cablesubscription rates in the county are too expensive and thatGouge-em’s profits are unfairly high. What regulated pricewill it set so that Gouge-em makes only a normal rate ofreturn on its investment?
- A publisher faces the following demand schedule for the next novel from one of itspopular authors:Price Quantity Demanded$ 100 0 novels90 100,00080 200,00070 300,00060 400,00050 500,00040 600,00030 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishingthe book is a constant $10 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity woulda profit-maximizing publisher choose? What price would it charge?b. Compute marginal revenue. (Recall that MR = ΔTR/ΔQ.) How does marginal revenuecompare to the price? Explain.C. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantitydo the marginal-revenue and marginal-cost curves cross? What does this signify?d. In your graph, shade in the deadweight loss. Explain in words what this means e. If the author were paid $3 million instead of $2 million to write the book, how wouldthis affect the publisher’s decision regarding what…I 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)1.Amalgamated Popcorn, Inc. sells bags of flavored gourmet popcorn in a popular mall. As shop owner and operator, you have observed that weekly popcorn sales are well-described by the demand equation: Q = 1,200 -800P + 2.0A, where A denotes advertising weekly spending (in dollars). You are currently charging $1.50 per bag of popcorn (for which the marginal cost is $.75) and spending $500 per week on advertising. a) Compute the store’s price elasticity and advertising elasticity. b) Check whether your current $1.50 price is profit maximizing. If not, determine the store’s optimal quantity and price. c) Should the store consider increasing its advertising spending? Why or why not.
- Table 17-9Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost. Price Quantity Total Revenues 70 0 0 65 100 6500 60 200 12000 55 300 16500 50 400 20000 45 500 22500 40 600 24000 35 700 24500 30 800 24000 25 900 22500 20 1000 20000 15 1100 16500 10 1200 12000 5 1300 6500 0 1400 0 Refer to Table 17-9. If Acme and Pinnacle operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn? Group of answer choices $9,000 $8,750 $8,000 $6,750Table 17-9Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost. Price Quantity Total Revenues 70 0 0 65 100 6500 60 200 12000 55 300 16500 50 400 20000 45 500 22500 40 600 24000 35 700 24500 30 800 24000 25 900 22500 20 1000 20000 15 1100 16500 10 1200 12000 5 1300 6500 0 1400 0 Refer to Table 17-9. If Acme and Pinnacle operate to jointly maximize profits, then what is the price? Group of answer choices $45 $40 $35 $30Table 17-9Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost. Price Quantity Total Revenues 70 0 0 65 100 6500 60 200 12000 55 300 16500 50 400 20000 45 500 22500 40 600 24000 35 700 24500 30 800 24000 25 900 22500 20 1000 20000 15 1100 16500 10 1200 12000 5 1300 6500 0 1400 0 Refer to Table 17-9. How much less do each of these firms earn in the Nash equilibrium than if they jointly maximize profits? Group of answer choices $250 $500 $750 $1000