The profit-maximizing/loss-minimizing level of output is determined where MR=MC for: all four industry types. pure competition and monopolistic competition. only pure competition. only regulated monopoly. D Question 40 Graph A Graph B Graph C Graph D AR AR AR AR-MR AMR MR Referencing the above diagram, Graphs A, B, C, and D, respectively, represent which of the following market models? Monopolistic competition, monopoly, oligopoly, and pure competition. Pure competition, oligopoly, monopoly, and monopolistic competition. Oligopoly, pure competition, monopolistic competition, and monopoly. Oligopoly, monopoly, pure competition, and monopolistic competition.

The profit-maximizing/loss-minimizing level of output is determined where MR=MC for: all four industry types. pure competition and monopolistic competition. only pure competition. only regulated monopoly. D Question 40 Graph A Graph B Graph C Graph D AR AR AR AR-MR AMR MR Referencing the above diagram, Graphs A, B, C, and D, respectively, represent which of the following market models? Monopolistic competition, monopoly, oligopoly, and pure competition. Pure competition, oligopoly, monopoly, and monopolistic competition. Oligopoly, pure competition, monopolistic competition, and monopoly. Oligopoly, monopoly, pure competition, and monopolistic competition.

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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Continuing with the scenario in question 1, in the long run, the positive economic profits that the monopolistic competitor earns will attract a response either from existing firms in the industry or film outside. As those films capture the original films profit, what will happen to the original films profit-maximizing price and output levels?
Suppose the market for Hula Hoops is monopolized by a single firm. a. Draw the initial equilibrium for such a market. b. Now suppose the demand for Hula Hoops shifts outward slightly. Show that, in general (contrary to the competitive case), it will not be possible to predict the effect of this shift in demand on the market price of Hula Hoops. c. Consider three possible ways in which the price elasticity of demand might change as the demand curve shifts: It might increase, it might decrease, or it might stay the same. Consider also that marginal costs for the monopolist might be increasing, decreasing, or constant in the range where MR=MC Consequently, there are nine different combinations of types of demand shifts and marginal cost slope configurations. Analyze each of these to determine for which it is possible to make a definite prediction about the effect of the shift in demand on the price of Hula Hoops.
(Monopolistic Competition and Perfect Competition Compared)Illustrated below are the marginal cost and averagetotal cost curves for a small firm that is in long-runequilibrium.a. Locate the long-run equilibrium price and quantity ifthe firm is perfectly competitive.b. Label the price and quantity p1 and q1.c. Draw in a demand and marginal revenue curve to illustratelong-run equilibrium if the firm is monopolisticallycompetitive. Label the price and quantity p2 and q2 .d. How do the monopolistically competitive firm’s priceand output compare to those of the perfectly competitivefirm?e. How do long-run profits compare for the two types offirms?
Compare the elasticity of the monopolistic competitor’s demand with that of a pure competitor and a pure monopolist. Assuming identical long-run costs, compare graphically the prices and outputs that would result in the long run under pure competition and under monopolistic competition. Contrast the two market structures in terms of productive and allocative effifi ciency. Explain: “Monopolistically competitive industries are characterized by too many firms, each of which produces too little.”
Are the following statements true or false? (D). A monopoly earns total revenue of $5000 when it sells 500 units of output and totalrevenue of $5400 when it sells 600 units of output. Thus, the marginal revenue of the600th unit is $9.(E). We call a market where there is only one buyer for a good or service a monopoly.(F). There are a few firms selling differentiated products in a monopolistically competitiveindustry.(G). When a demand curve is a downward sloping straight line, the slope of the marginalrevenue curve is twice as steep as the demand curve.
Consider a monopoly trading firm that dominates a particular market. Describe the factors that contribute to the monopoly's ability to control prices and generate profits and as such discuss its short run and long run profit situation. Use relevant diagrams to support your answer. Ans suppose more firms are interested in joining the market and over the years, the market structure is characterised by monopolistic competition. Discuss the implication on the firm’s short-run and long run profits with the use of relevant diagrams.
The major difference between monopolistic competition and monopoly is a. how the quantity of output is determined. b. only a monopoly can earn an abnormal profit in the long run. c. monopoly is a price taker, and a firm in monopolistic competition is a price maker d. only firms in monopolistic competition are protected by barriers to entry
QUESTION SEVEN-economics(a) With well-explained examples, differentiate between Monopolyand monopolistic market structures(b) With the help of a neat and clean diagram, discuss the differencebetween change in demand and change in quantitydemanded of the firm product No chatgpt or any AI Answer No hand written solution plz
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With regard to market structure, answer the following: (a) A monopolist never produces in the inelastic portion of its demand curve. True or false? Why? (b) Draw a figure showing a monopolist producing at the lowest point on its long-run average cost curve. (c) What is third degree price discrimination? Why does a monopolist practice it? What are the conditions are necessary for the monopolist to be able to practice it? Give a real-world example of third degree price discrimination? (c) If the price elasticity of demand is -3 in market 1 and -2 in market 2 and the price in market 1 is $12, what price should a monopolist practicing third degree price discrimination set in market 2?
C. Assuming identical long run costs as in the diagram above, compare graphically the prices and outputs that would result in the long run under pure competition and under monopolistic competition. the reference paint corresponding to the long run price and output for a monopolistically competitive for is.....?
Consider a simple monopolistic competition industry (many firms) in whicheach firm in the industry has one store. The store costs $200 per week andthe marginal cost is $10 per unit of output in addition to the fixed cost of the store. Hint: Mathematically this problem can be solved just like a monopoly problem. (a) If the typical the demand facing each individual firm is QD = 40−P eachweek, what price will a typical firm in this industry charge? (Hint: IfQD = 40 − P then P = 40 − QD and MR = 40 − 2QD). (b) Is the firm making a positive profit? What is the producer surplus? Whatis the profit after fixed costs? (c) Will new firms enter the market if demand stays the same and new firmsface the same demand and have the same costs? (d) In general, what is the long run profit of an average firm in a monopolistically competitive market.