Under what circumstances does a firm operate with excess capacity? Question 22 options: when additional production would lower the average total cost when additional production would increase average total cost only if it is a monopolistically competitive firm in the short run only if it is a perfectly competitive firm in the long run

Under what circumstances does a firm operate with excess capacity? Question 22 options: when additional production would lower the average total cost when additional production would increase average total cost only if it is a monopolistically competitive firm in the short run only if it is a perfectly competitive firm in the long run

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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Question 6 A monopolistically competitive industry is characterized by... Group of answer choices many firms selling products that are similar but not identical. many firms selling identical products. a few firms selling products that are similar but not identical. a few firms selling highly different products.
Question 7 As competitors enter a monopolistically competitive industry, the incumbent firms' demand curves... Group of answer choices Shift to the left and become less elastic Shift to the right and become less elastic Shift to the left and become more elastic Shift to the right and become more elastic
Question 37 A monopolistically competitive firm cannot make strictly negative profits in the long run because The firm’s optimal quantity is to produce where marginal revenue equals marginal cost The firm must operate at the efficient scale Either the firm exits or the exit of other firms shifts its demand curve to the right, raising profits until it makes zero profits. Exit of other firms shifts the market supply curve to the left and raises the price until firms make zero profits
Question 5 Based on market research, a film production company (monopolistically competitive firm) in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P = 1,000 − 10Q Total Revenue: TR = 1,000Q − 10Q2 Marginal Revenue: MR = 1,000 − 20Q Marginal Cost: MC = 100 + 10Q where Q indicates the number of copies sold and P is the price in Ectenian dollars. a. Find the price and quantity that maximize the company’s profit. b. Find the price and quantity that would maximize social welfare. c. Calculate the deadweight loss from monopoly.
What are the key trade offs of imperfect competition? Question 8 options: The monopolistically competitive market structure fails to achieve allocative efficiency, but the firms all face perfectly elastic demand curves. The monopolistically competitive market structure provides powerful incentives for innovation, but the strongest firms in a monopolistically competitive market become oligopolists. The monopolistically competitive market structure allows firms to achieve economic profit in the short run, but the individual firms all face perfectly elastic demand curves. The monopolistically competitive market structure provides powerful incentives for innovation, but they never achieve productive efficiency in the long run.
There are thousands of wheat farmers who produce and sell wheat and there are millions of consumers who use wheat and wheat products. What would the market for wheat be considered? Question 15 options: monopolistic perfectly competitive monopolistically competitive oligopolistic
Question 3 In a monopolistically competitive industry, firms set price Group of answer choices equal to marginal cost since each firm is a price taker. below marginal cost since each firm is a price taker. above marginal cost since each firm is a price setter. always a fraction of marginal cost since each firm is a price setter.
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 $228
Question 9 You have been appointed the new managing director of BOTCHPOWER, which has bought a major stake in Ghana’s ECG and you company is described as a monopolistic competitive firm in the supply of electricity in Ghana. In effect, your firm has the power to discriminate between domestic consumers and commercial consumers of electricity in Ghana. To help you price your services appropriately to maximize profit, you engaged an economist who estimated the demand function for both Domestic consumers and Commercial consumers as: ? = 48 – 0.4? Domestic Consumers -- ? = 20 – 0.1? Commercial Consumers (( Where ?- and ?( are the respective kilowatts (KW) of electricity consumed by Domestic Commercial consumers and ? and ? are their respective prices per kilowatt. If the total cost -( of this BOTCHPOWER company for producing a kilowatt of electricity is given as ?? = 70 + 80?, where ? = ?- + ?(: a) What price will BOTCHPOWER charge per kilowatt to maximize profits: i. With discrimination…
As firms enter and exit a monopolistically competitive market, what happens to productive efficiency in the long run? Group of answer choices 1-Productive efficiency will not be reached because in the long run, economic profits reach equilibrium. 2-Prices will rise to unprecedented levels, and productive efficiency will be reached. 3-The strongest firms will survive and the market will morph into an oligopolistic market. 4-Price will eventually intersect the average cost curve at a point where price > average cost, and productive efficiency will not be reached
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
What are the key trade offs of imperfect competition? Group of answer choices 1-The monopolistically competitive market structure provides powerful incentives for innovation, but they never achieve productive efficiency in the long run. 2-The monopolistically competitive market structure provides powerful incentives for innovation, but the strongest firms in a monopolistically competitive market become oligopolists. 3-The monopolistically competitive market structure fails to achieve allocative efficiency, but the firms all face perfectly elastic demand curves. 4-The monopolistically competitive market structure allows firms to achieve economic profit in the short run, but the individual firms all face perfectly elastic demand curves.

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	when additional production would lower the average total cost
	when additional production would increase average total cost
	only if it is a monopolistically competitive firm in the short run
	only if it is a perfectly competitive firm in the long run