The monopolistically competitive firm represented in the graph is in:$$11.40$10.20$7.500520 630MCATCFirm's DemandMRQuantity along-run equilibrium since it is earning zero profit.b short-run equilibrium since it is earning zero profit.C short-run equilibrium, but not long-run equilibrium since it is earning positive economic profit.Your answerd long-run equilibrium, but not short-run equilibrium since it is earning positive economic profit.

The monopolistically competitive firm is in long-run equilibrium. BecauseIn long-run equilibrium, a…

Answered: The monopolistically competitive firm…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 1P

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EOC 17.02 (and 17.01) Which of the following is an example of a monopolistically competitive market? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the market for TV shows b the market for barley the market for gold d the market for gas stations.
ls uccess Tips ■ccess Tips NOUT Actumpto Koup the Highest/3 3. Is monopolistic competition efficient? Suppose that a firm produces baseball bats in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (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 par bat) 80 70 60 20 MO о о 10 20 40 ATC 60 QUANTITY (Thousands of bas) Demand Man Camp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is average total cost. at the the quantity at which…
How does the demand curve for a monopolistic competitive firm looks like? Graph it.
Marginal revenue and marginal cost intersect at point Multiple Choice C. d. a. b.
The following graph characterizes a firm in a monopolistically competitive market. 32 24 18 16 12 8- ATC This show that the firm is 12 MC earing zero economic profits. producing 16 units of the good. in a long run equilibrium. in a short run position. MR 16 20 24 Demand 28 32 Q
Westchesser Gloves is a monopolistically competitive firm that sells leather gloves. Use the graph to highlight the area of profit or loss and answer the questions, Price per pair (5) 10 20 Marginal profit or loss: $ Aver co Pairs of gloves (in thousand) Demand 70 80 90 100 Profit or loss Calculate Westchesser's profit or loss at the profit-maximizing price. What will happen to the number of firms in this industry in the long run? Firms will enter this industry, increasing the price at which each firm can sell their gloves until firms begin to earn normal profits. O Firms will exit this industry, increasing the price at which each firm can sell their gloves until firms begin to carn normal profits. O Firms will exit this industry, decreasing the price at which each firm can sell their gloves until firms begin to carn normal profits. O Firms will enter this industry, decreasing the price at which each firm can sell their gloves until firma begin to carn normal profits
The graph below shows cost and revenue curves for a monopolistic competitor producing different amounts of chairs. On the graph, suppose that: A = $55, B = $21, C = $15, E = $7, F = 13, and G = 31 Price BL BCE CP MC ATC EH MR F G Quantity Calculate the maximum profit the firm can earn
Suppose the accompanying graph depicts a monopolistically competitive firm earning positive economic profits. Please shift the curves to show the effects of long-run competition and then place Point A at the price and quantity at which the firm will produce inthe long-run MC ATC MR A Quantity Price and Cost
Given that this firm is producing in a Monopolistic Competition (M.C.) market structure (with, e.g., 30 fırms), suppose this market were to transform, over time, into an oligopoly type of market structure, with only 3 fırms dominating all the national sales. Describe one advantage, plus one disadvantage, of oligopolies to society (hint: pricing behavior, types of efficiency, etc.) Edit View Insert Format Tools Table 12pt v Paragraph v BIU Av MacBook Pro -> G Search or type URL & %23 %24 6 7 9. deleto 3 4 E RI T Y. U tab G H. ps lock
Is it possible for monopolistic firms to make supernormal profit/ positive profit in long run? Provide explanation
The following graph characterizes a firm in a monopolistically competitive market. ATC 32 24 8 MC Demand MR 12 16 20 24 28 32 2 This show that the firm is In a long run equilibrium. earing zero economic profits. In a short run position. producing 16 units of the good.
Exercise A.13. Explain and graph the long-run equilibrium of a monopolistic firm and that of a perfectly competitive firm. Compare both situations in terms of the level of production, prices and economic efficiency.

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