Principles of Microeconomics
7th Edition
ISBN: 9781305156050
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 16, Problem 6PA
Subpart (a):
To determine
Monopolistic Competition and long run equilibrium.
Subpart (b):
To determine
Monopolistic Competition and long run equilibrium.
Subpart (c):
To determine
Monopolistic Competition and long run equilibrium.
Subpart (d):
To determine
Monopolistic Competition and long run equilibrium.
Expert Solution & Answer
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Students have asked these similar questions
Maggie is one firm of many in the market for toothpaste, which is in long-run equilibrium.
1,a. Draw a diagram showing Maggie’s demand curve, marginal-revenue curve, average total cost curve, and marginal-cost curve. Label Sparkle’s profit-maximizing output and price.
b. What is Maggie’s profit? Explain.
c. On your diagram, show the consumer surplus derived from the purchase of Maggie toothpaste. Also show the deadweight loss relative to the efficient level of output.
d. If the government forced Maggie to produce the efficient level of output, what would happen to the firm? What would happen to Maggie’s customers?
Can you help me to draw a graph too.
When Big Top maximizes profit, what is the consumer surplus and producer surplus and is the circus efficient? Explain why or why not.
Price
Quantity
Total Cost
Total Revenue
Marginal Revenue
Marginal Costs
20
0
1,000
0
0
0
18
100
1,600
1,800
18
6
16
200
2,200
3,200
14
6
14
300
2,800
4,200
10
6
12
400
3,400
4,800
6
6
10
500
4,000
5,000
2
6
8
600
4,600
4,800
-2
6
6
700
5,200
4,200
-6
6
4
800
5,800
3,200
-10
6
From the given information, draw the demand curve, MR, MC and ATC curve
Output
Price
TR
MR
TC
ATC
MC
Profit
1
$300
$300
-
$1,000
$1,000
-
-
2
$300
$600
$300
$1,500
$750
$500
-$200
3
$300
$900
$300
$1,800
$600
$300
$0
4
$300
$1,200
$300
$2,000
$500
$200
$100
5
$300
$1,500
$300
$2,300
$460
$300
$0
6
$300
$1,800
$300
$2,850
$475
-$550
-$250
7
$300
$2,100
$300
$3,710
$530
-$860
-$560
Chapter 16 Solutions
Principles of Microeconomics
Ch. 16.1 - Prob. 1QQCh. 16.2 - Prob. 2QQCh. 16.3 - Prob. 3QQCh. 16 - Prob. 1CQQCh. 16 - Prob. 2CQQCh. 16 - Prob. 3CQQCh. 16 - Prob. 4CQQCh. 16 - Prob. 5CQQCh. 16 - If advertising makes consumers more loyal to...Ch. 16 - Prob. 1QR
Ch. 16 - Prob. 2QRCh. 16 - Prob. 3QRCh. 16 - Prob. 4QRCh. 16 - How might advertising reduce economic well-being?...Ch. 16 - Prob. 6QRCh. 16 - Prob. 7QRCh. 16 - Prob. 1PACh. 16 - Prob. 2PACh. 16 - Prob. 3PACh. 16 - Prob. 4PACh. 16 - Prob. 5PACh. 16 - Prob. 6PACh. 16 - Prob. 7PACh. 16 - Prob. 8PACh. 16 - Prob. 9PACh. 16 - Sleek Sneakers Co. is one of many firms in the...
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