Sub : EconomicsPls answerin 15 mins.Dnt CHATGPT.I ll upvote. Thank You True or False: This indicates that there is excess capacity in the market for engines.TrueFalseMonopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of theproduct variety externality implies that there is too much entry of new firms in the market. 3. Is monopolistic competition efficient?Suppose that a firm produces wooden train engines in a monopolistically competitive market. The following graph shows its demand curve, marginalrevenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve.Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next,place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost.?PRICE (Dollars per engine)100908070504030201000MC10ATCMR20 30 40 50 60 70QUANTITY (Thousands of engines)80Demand90 100++Mon Comp OutcomeMin Unit CostBecause this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatoptimal quantity for each firm. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isminimum average total cost.at the▼ the

Monopolistic competition arises when there are several businesses selling comparable but different…

True or False: This indicates that there is excess capacity in the market for engines. True False Monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of the product variety externality implies that there is too much entry of new firms in the market.

True or False: This indicates that there is excess capacity in the market for engines. True False Monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of the product variety externality implies that there is too much entry of new firms in the market.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter24: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 9CQ

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