The diagram below illustrates a firm under monopolistic competition: (a) Label the curves Curve I, Curve II, Curve III, Curve IV. (b) Graphically identify profit maximizing output and price (c) Explain how the amount of profit is defined at the maximum-profit output. II II IV Q
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- Practice question: 20 According to the figure above, what is the monopolistic competitor's profit-maximizing output? Group of answer choices Q3 units Q4 units Q2 units Q1 unitsAssume a firm engaging in selling its product and promotional activities in monopolistic competition face short-run demand and cost functions as Q = 20-0.5P and TC= 4Q2 -8Q+15, respectively. Having this information a) Determine the optimal level of output and price in the short run. b) Calculate the economic profit (loss) the firm will obtain (incur). c) Show the economic profit (loss) of the firm in a graphic representation.The diagram below illustrates a firm under monopolistic competition:(a) Label the curves Curve I, Curve II, Curve III, Curve IV.(b) Graphically identify profit maximizing output and price(c) Explain how the amount of profit is defined at the maximum-profit outpu
- A profit -maximizing producer in the monopolistically competitive industry,currently in long run equlibrium. Draw a labeled profit-maximization graph include labels of relevent cost and revenues curves (MC,ATC,MR,AR=D) Identify the profit maxizing quantity as Qpmp and price as Ppmp Identify the socially optimal level of output as QsoExercise A.8 In a small town there is only one theatre, so the owner company is monopolistic and has a constant marginal cost of €10. A group of potential viewers, made up of workers, has the demand curve Q1 = 80 – P1. Another group of potential viewers, made up of retirees with lower incomes, has the demand curve Q2 = 80 – 2P2. (a) If the local authority authorises price discrimination, determine the monopolist's equilibrium and represent graphically. b) How would the result vary if you could discriminate prices? Represent graphically. c) Relate the equilibrium prices of the previous section with the elasticities of demand of the two groups of spectators. (d) If the monopolist could apply a double tranche tariff, what usage and entry fee would he set if the latter could be different for each group? What benefits would you get? Represent graphicallyA monopolistically competitive firm produces ________ output than a perfectly competitive firm with the same cost curves.The resulting equilibrium price under monopolistic competition is ________ than the equilibrium price under perfect competition. Question 1Answer a. more; lower b. less; higher c. less; lower d. more; higher
- Q2: A ________ exists when the quantity demanded in the market is less than the quantity at the bottom of the long-run average cost curve. a.) natural monopoly b.) monopolistic competition c.) monopoly d.) oligopolySuppose,initially there is a positive profit obtained by a firm in monopolistic competition.Explain how the adjustment to the long-run equilibrium will take place in the monopolistic competitive market.why will there be excess capacity in the long-run equilibrium in this scenario?Provide adequate graph to supplement your answer.The table is for a monopolistic competitive firm in the short run. What will the firm's profit equal in the long run? Question 1 options: $0 $91 $102 $228
- The table above is for a monopolistic competitive firm. What will the firm's profit equal in the short run? Question 3 options: $0 $91 $102 $228COURSE: 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 CASEQuestion 8888 M 22-Which of the following alternatives is typical in a monopolistic market? a.all of before mentioned alternatives. b.Price always exceeds marginal revenue c. Firm is a price setter d.Price is always greater than marginal cost Full explain this question and text typing work only thanks