With explain this question Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graphPRICE (Dollars per bike)Homework (Ch 16)PRICEQUANTITY (Bikes)QUANTITY (Bikes)DemandDemandPrice is above marginal cost.Price equals average total cost in the long run.Firms can earn positive profit in the long run.Firms are not price takers.10Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.Demand 3. How short-run profit or losses induce entry or exitFantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demandcurve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitivecompany. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.PRICE (Dolars per bike)500PRICE (Dolars per bike)450400300200150Homework (Ch 16)600450400210150100050 100ATCATCDemans150 200 250 300 350 400 450 500QUANTITY (Bas)•+Monopolistically Competitive OutcomeProff or Loss+Monopolistically Competitive OutcomeGiven the profit-maximizing choice of output and price, the shop is makingProft or Lossshops in the industry relative to the long-run equilibrium.profit, which means there areNow consider the long run in which bike manufacturers are free to enter and exit the market.Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph.search this course

Solution:- 1st Part) ▪︎Firm's are not price takers- True Explanation- If there is perfect…

Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph PRICE (Dollars per bike) Homework (Ch 16) PRICE QUANTITY (Bikes) QUANTITY (Bikes) Demand Demand 101 Price equals average total cost in the long run. Firms can earn positive profit in the long run. Firms are not price takers. Price is above marginal cost. Demand Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.

Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph PRICE (Dollars per bike) Homework (Ch 16) PRICE QUANTITY (Bikes) QUANTITY (Bikes) Demand Demand 101 Price equals average total cost in the long run. Firms can earn positive profit in the long run. Firms are not price takers. Price is above marginal cost. Demand Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.11P

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