1) Are monopolists guaranteed of making economic profits?. pleas explain.
2) Explain the long run equilibrium situation for a
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A market is a place where the buyers and the sellers interact with each other for the exchange of products and services. One of the markets is the monopoly market. In this market, the single seller offers discriminated prices or products to consumers with the motive of earning higher profits.
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Pleas : Explain the long run equilibrium situation for a
thank you
Pleas : Explain the long run equilibrium situation for a
thank you
- Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the profit maximizing level of output, what will be the firm's revenue? 45 40 35 30 25 20 15 10 5 Select one: a. $64 b. $80 c. $120 MC1 d. $0 because the firm will shut down ATC₁ AVC1 MR1 D₁ 1 2 3 4 5 6 7 8 9 хоarrow_forward3. How does quantity and price for a monopolist compare to quantity and price for a perfectly competitive firm?arrow_forwardSuppose the figure to the right shows the demand curve for a monopolistically competitive firm. Show the firm's marginal revenue curve. 20- 18- Using the line drawing tool, graph the firm's marginal revenue curve. Label this curve "MR." 16- Carefully follow the instructions above, and only draw the required object. 14- E 12 10- 4- 12 16 20 24 28 32 36 40 Quantity Price (dollars per unit)arrow_forward
- A monopolistically competitive firm in a long-run equilibrium will likely produce which of the following? A. a technically efficient amount of outputB. less than a technically efficient amount of output and less than an allocatively efficient amount of outputC. more than a technically efficient amount of output but less than an allocatively efficient amount of outputD. an allocatively efficient amount of production.E. less than a technically efficient amount of output and more than an allocatively efficientarrow_forward1. If the demand for a good increases at the same time as the supply of the same good decreases, what will happen to the equilibrium price and quantity of the good? Explain. 2. What is the deadweight loss of monopoly? Show the deadweight loss when the monopolist can perfectly price discriminate. 3. What is the point of long run equilibrium of a monopolistically competitive firm. How does it compare to a competitive firm.arrow_forwardThe diagram below describes a monopolistically competitive firm in long-run equilibrium. On the diagram illustrate. a. The quantity of output, qo , that maximizes profit. b. The quantity of output, qfe , that would represent the firm’s full capacity. c. The quantity of output, qs , that would represent the socially optimal output level.arrow_forward
- Answering all questions compulsory...arrow_forwardA monopolistically competitive firm maximizes profits when it اختر احد الخيارات a. produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal cost b. produces the quantity at which marginal cost equals marginal revenue and uses the demand curve to determine the market price o .c. produces the quantity at which marginal cost equals the market price d. produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal revenuearrow_forwardDear sir or madam, hope you are well. I have a question about economics.Using appropriate diagrams, show a monopolistic and a monopolistically competitive firm whentheir respective markets are in long-run equilibrium. Outline the long-run outcomes in eachmarket with particular attention given to economic profits generated by each firm and themaximisation of total surplus associated with the market.arrow_forward
- The figure shows what type of market? >>Please add an explanation of how natural monopoly differs in graph vs. normal monopoly.arrow_forwardwhy is a firm in a monopolistic competition said to be competive?in what sense is hat firm monoplisticarrow_forwarda) Using the following graph state the price and quantity the firm will be at if the monopolistic competition market is in long run equilibrium. Explain why the firm will be at that price and quantity. Price P1 MC ATC B P 2 P3 P4 P5 MR D Q2 Q3 Quantity b) State the conditions that establish the market structure monopolistic competition, and state how the market adjusts to long run equilibrium and what is different about long run equilibrium for this market structure.arrow_forward
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