The zero profit condition is assumed for the long run equilibrium under monopolistic competition all things equal. So explain why it is possible for firms under monopolistic competition to escape the zero profit conditions while it is much less likely under perfect competition

Q: What is true about the price that is charged in the short run by a firm in monopolistic competition?…

A: In monopolistic competition, the firm sells the product at a price when its marginal cost is equal…

Q: he combined output of the firms in a monopolistically competitive market is _____________  the…

A: In the case of monopolistically competitive firm, each firm faces a downward sloping demand curve…

Q: Suppose a monopolistically competitive firm operates in a long run which produces 40 units of output…

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A: Profit maximizing level of output is that quantity where marginal revenue is equal to marginal cost.

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A: Q(P) = 300/N – P TC(Q) = 50 + Q²

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A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: In the long run equilibrium, which of the following will be correct for both perfectly competitive…

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Q: Assume the following equations describe the conditions for a typical firm in a monopolistically…

A: Given: P = 6 - .00075q--------------------1 TC = 4,000 + 2q + .00025q2 MC = dTC/dq MC = 2+0.0005q TR…

Q: Draw a diagram to show the long-run equilibrium of a firm in a Monopolistically Competitive market…

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Q: If perfectly competitive firms and monopolistic firms are not commonplace in the United States, why…

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Q: Suppose, initially there is a positive profit obtained by a firm in monopolistic competition.…

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Q: Suppose that in the short run the firms in a monopolistically competitive industry are making an…

A: 1. While the monopolistic competitive corporation can benefit in the short term, the long-term…

Q: Which of the following statements is correct?   a. In the long run, both perfectly competitive…

A: Excess capacity occurs when the output produced by firm is less than its efficient level of…

Q: Because this market is a monopolistically competitive market, you can tell that it is in long-run…

A: Brand differentiation and monopolistic competition are inextricably linked. In a field characterised…

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A: Answer - Thank you for submitting the question. But,  we are authorized to solve only 3 sub parts.…

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A: In monopolistic competitive market, many firms produce similar but differentiated products. These…

Q: Consider a monopolistically competitive market in which each firm in the market has a cost function…

A: We are going to use long run rquilibrium condition to answer this question.

Q: In a long-run equilibrium, would a perfectly competitive firm and a monopolistically competitive…

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Q: Monopolistic Competition Problem Consider the Monopolistic Competition Model studied in class for…

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Q: You are the manager of a monopolistic firm, and your demand and cost functions are given by P = 300…

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Q: Monopolistic Competition in the Long-Run FRQ Assume that two firms are operating with identical cost…

A: a) Long run equilibrium price and quantity for monopolist is PM & QM and for perfect competitor…

Q: A fundamental feature of a monopolistic market is that the firm ________. *   a) can sell any…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: Which of the following is true about the optimal output of the firm?  A. P = MR = MC under pure…

A: Pure competition, monopoly, monopolistic competition, oligopoly are different types of market…

Q: Which of the following statements is true about the difference between monopoly and monopolistic…

A:

Q: The transition from short-run to long-run equilibrium in a monopolistically competitive industry is…

A: Perfect competition is a type of market structure in which there are large number of buyers and…

Q: A perfectly competitive firm is considered to be more generous in terms of price and quantity of…

A: Answer to sub parts c and d are as follows:

Q: Which of the following situations is representative for long-run equilibrium in monopolistic…

A: A monopolistic industry is one in which a large number of businesses compete for the same (but not…

Q: Because this market is a monopolistically competitive market, you can tell that it is in long-run…

A: Monopolistic competition is the form of market organization in which there are many sellers of a…

Q: Three firms are competing through prices (Bertrand competition). They are all selling the same…

A: Bertrand competition is a model of an oligopoly market structure.

Q: Can you explain it simply and clearly, especially the formula?   Productive and Allocative…

A: Answer - Given in the question - Most of the monopolistic competitive firms cannot achieve…

Q: What is the difference between a monopolistically competitive industry and a monopoly? Multiple…

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Q: Refer to the above graph for a representative firm in monopolistic competition in a constant-cost…

A: In a monopolistic firm, there are a large number of firms selling similar but not identical products…

Q: An important difference between the situation faced by a profit-maximizing monopolistically…

A: Firms in the monopolistic market structure there exists a large number of firms competing with each…

Q: Because this market is a monopolistically competitive market, you can tell that it is in long-run…

A: Answer: According to the above figure, the market is in equilibrium at point E where the marginal…

Q: Which of the following is not characteristic of long-run equilibrium under monopolistic competition?…

A: The monopolistic market competition where there is a large number of sellers selling little…