2. Show graphically the following conditions: 1) Super Profit of a Perfect Competition firm in short Run 2) Super Profit of a Monopoly firm in short Run 3) Loss of a Monopoly firm in short Run
Q: Q4. Perfect competition is considered a better choice for consumers because they get quality…
A: Perfect competition is a market structure where goods are identical. consumers have perfect…
Q: Question 8 The competitive firm earns zero or normal profit in long run because O Total revenue is…
A: An economic benefit is equal to the sum of revenue minus the total value, where the cost is measured…
Q: Question 1c. Why does price equal marginal revenue for the perfectly competitive firm? What is the…
A: The perfect competition is the market condition in which there are many buyers and sellers in the…
Q: Case D: Apex Company. Apex is a perfectly competitive firm. It has total fixed costs of $300/day…
A: Shutdown point refers to a level of production at which a firm starts to incur heavy losses such…
Q: 17. When a firm in a perfectly competitive market has marginal revenue of $25,000 and receives total…
A: Total Revenue=Average Revenue×QuantityAverage Revenue=Total RevenueQuantity
Q: 7. Perfect competition has a A. Large; large number of firms. B. Small; small C. Large; small D.…
A: The perfectly competitive market is one of the market structures in the economy just like monopoly,…
Q: 3. A competitive firm would benefit from charging a price below the market price because the firm…
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: Question 7.7 In pure competition, each extra unit of output that a firm sells will yield a marginal…
A: MR is the extra revenue which is generated by increasing the sales of a product by one unit. Pur…
Q: A competitive firm would benefit from charging a price below the market price because the firm would…
A: When talking about perfectly competitive market, it is the market with many buyers and many sellers.
Q: 10) The unfair competition is based on the following elements: a) Offer, acceptance, subject matter…
A: The unfair compition is based on the basis of following elements :- unauthorized substitution of…
Q: 2) A perfectly competitive market has demand given by Qp = 4850 – 70P. There are four firms in this…
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Q: Total cost Price (dollars per ticket) Quantity (tickets (dollars per show) per show) 20 0 1,000 Big…
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Q: 9. Marginal revenue equals marginal cost in perfect competition when... a) A firm is in equilibrium…
A: There are large number of buyers and sellers in the perfectly competitive market. Firms are only…
Q: 28. Under which market structure, average revenue of a firm is equal to its marginal revenue
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Q: What is the behavior of Marginal revenue, Average revenue and price under perfect competition? Also…
A: In perfect competition, firms are price takers, and accept market price as its own price. Therefore,…
Q: 58. How can a firm under pure competition maximize its profit or minimize its loss? compare total…
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Q: QUESTION 5 Which of the following is true for monopoly and perfect competition? CA The demand for…
A: A monopoly firm is the sole supplier of the good in the market and therefore a monopoly firm faces…
Q: The slope of the total revenue curve for a competitive firm is equal to __________, which is equal…
A: While a firm in a perfectly competitive market has no impact on its cost, it decides the result it…
Q: 1. Identify and explain the logic of the profit maximizing rule for pure competition. 2.…
A: competitive market is the form of market where competition is so high and there are large number of…
Q: perfect competition
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Q: QUESTION 11 The competitive firm earns zero or normal profit in long run because O Total revenue is…
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Q: If an individual perfectly competitive firm charges a price above the industry equilibrium price, it…
A: In perfect competition, there are a large number of buyers and sellers where there are no entry…
Q: 14 The competitive firm's supply curve is equal to its marginal cost curve. the portion of its…
A: Supply curve: It represents the relationship between price and the quantity of the product that a…
Q: 23. In case of perfect competition in the market A. O Marginal revenue curve always slopes upward B.…
A: When product is made, cost takes place and process of business builds up. Business can be of…
Q: Explain, with the aid of a graph, the short-run position of a perfectly competitive firm making…
A: A perfectly competitive market structure is one in which there are a large number of buyers and…
Q: 4) If the range of profitable demand for a company producing digital pumps was D'1 = 8.5 units and…
A: 4. The profit range for a specific transaction or investment refers to the range of possible…
Q: 2. Discuss the two profit maximization approaches under pure competition. Draw your graphs. 3.…
A: Perfect competition is the type of market where n number of sellers and buyers are working for a…
Q: 58. How can a firm under pure competition maximize its profit or minimize its loss? compare total…
A: Note:- Since we can only answer one question at a time and the question is not specified, we'll…
Q: 1 Evaluate the demand curve of firms that operate in Perfect competition
A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…
Q: In principle, how do we determine a perfectly competitive firm's profit-maximizing output and…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 1- Consider the following graph of a firm in the industry to answer the following: MC ATC, Units of…
A: Perfect competition is a market system in which all producers and consumers have complete and…
Q: 20 What is the key characteristic of perfect competition? A One firm sells a highly demanded…
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Q: If P = MC and MC > ATC, then a perfectly competitive firm will earn ________ profits. A) break-even…
A: A perfectly competitive firm has no control over price and to maximize profit a firm produces where…
Q: 8. Firm's Revenue A firm in a competitive market receives $1,040 in total revenue and has marginal…
A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…
Q: Name the four market structures and the industry characteristics that determine them. 2. Why do you…
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Q: 19. In perfect competition, the firm's marginal revenue curve A) cuts its demand curve from below,…
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Q: Question 7 All of these are necessary for perfect competition, EXCEPT: O A. no barriers to market…
A: A completely competitive market is a speculative market where rivalry is at its most prominent…
Q: 2. In the problem of double marginalization, the resulting price is ______than if the manufacturer…
A: Double marginalization also known as double monopoly mark up is a problem by which two successive…
Q: Explain why perfect competition is not compatible with firms having increasing returns to scale…
A: In perfect competition there ate large numbers of buyers and sellers in the market and exchange…
Q: 3. A perfectly competitive industry has a large number of potential entrants. Each firm has an…
A: In perfect competition, the long-run equilibrium exists when:Long-run average cost = Long-run…
Q: Question 8 Table 5-1 below shows the price and cost information for a firm that operates in a…
A: "In a perfectly competitive market there are many firms and consumers. Firms produce similar…
Q: 33) At the profit-maximizing level of output for a perfectly competitive firm A) price equals…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
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- 1. In long-run monopolistic competition, a) all firms will produce an identical product b) entry or exit will shift the demand curve until all firms earn zero profit c) firms might earn positive profits since strategic barriers prevent new firms from entering d) entry or exit will shift the supply curve until all firms earn zero profit e) firms may operate at a loss if the tax advantage are sufficiently large 2. What is the profit maximizing output level for a monopolistic competitive firm facing demand of P=50-2q, constant marginal costs of $10 and fixed costs are $50? a) 19 units b)10 units c) 30 units d) 25 units e) 20 units 3. What is the profit maximizing price for a monopolistically competitive firm facing demand of P=50-2q, constant marginal costs of $10 and fixed costs of $50? a) $50 b) $10 c) $2 d) $20 e) $30 4. What is the maximum profit that can be earned by a monopolistically competitive firm facing demand of P=50-2q, constant marginal costs of $10 and fixed costs of $50?…2. Entry or exit in the long run Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. 500 450 Monopolistically Competitive Outcome 400 350 300 Profit or Loss A ATC 250 200 150 MC 100 50 MR Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) Given the profit-maximizing choice of output and price, the shop is earning profit, which means there are shops in the industry than in long-run equilibrium. PRICE (Dollars per bike)ICE (Dollars per scooter) 3. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss 500 450 400 360 200 250 200 150 400 50 MC- ATC MR Demand 150 200 250 300 360 400 450 500 QUANTITY (Scooters) + Monopolistically Competitive Outcome Profit or Loss (?) Given the profit-maximizing choice of output and price, Citrus Scooters is earning sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to enter and…
- PRICE (Dolars per bike) 2. How short-run profit or losses induce entry or exit Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal-revenue (MR) curve, marginal-cost (MC) curve, and average-total-cost (ATC) curve. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. Now consider the long run in which bike manufacturers are free to enter and exit the market. Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph. 500 400 400 ATC 300 250 200 150 100 Mo Demand 0 ° 50 100 150 200 200 300 350 450 500 QUANTITY (Bikes) Monopolistically Competitive Outcome Profit or Loss Given the…9) Describe and illustrate the difference between perfect competition and monopolistic competition in the long run. Comment on long run profit, price sensitivities that firms are responding to as well as welfare and efficiency outcomes in both cases.1.What degree of income elasticity of demand would you expect for summer holiday breaks to an exotic destination? Explain your reasoning in a few sentences. 2.Consider the markets for pizza delivery services in Vienna, hotel accommodation in Krems and train travel in Austria. Define the market types perfect competition, oligopoly / monopolistic competition and monopoly and classify the given examples accordingly. Explain your reasoning in a few sentences. 3. Consider an independently run hotel in Krems and briefly discuss how it might be affected by the following scenarios: a) A rise in interest rates b) A fall in unemployment c) A fall in the exchange rate (i.e., the value of the euro decreases) d) A rise in inflation 4.Explain why tourism satellite accounts are useful and give examples for direct and indirect effects (two examples for each). 5. From 2015-2019, the Austrian accommodation and food services industries have grown in real terms by 4.1 %, the Austrian economy as a…
- Question 16 Which one of the following statements is correct? a) Under monopolistic competition, marginal revenue is lower than average revenue. b) Under monopolistic competition, marginal revenue is equal to average revenue. c) Under monopolistic competition, marginal revenue is greater than average revenue. d) Under oligopoly, marginal revenue is equal to average revenue.QUESTION 13 A monopolistic competitive firm. a)As presented in Exhibit, the long-run profit-maximizing output for the monopolistic competitive firm is? b) To maximize long-run profits, the monopolistically competitive firm shown in Exhibit will charge a price per unit of ?7) Although the long run equilibrium of a monopolistically competitive markets involves zero economic profit like perfect competition, the outcome is deemed to be inefficient. Why is that the case? Are there desirable characteristics of monopolistic competition that potentially balance some of the inefficiencies?
- Assignment 9 Question 1 A monopolistic producer of two goods, G, and G2, has a joint total cost function TC = 5Q1 + Q1Q2 +5Q2 Where Q1 and Q2 denote the quantities of G1 and G2 respectively. If P, and P2 denote the corresponding prices then the demand equations are P1 = 40 – Q1 + Q2 Ра 3 20 + 2Q1- Q2 a) Find the total revenue function for each good b) Find the profit function for the firm c) Find the maximum profit if the firm is contracted to produce a total of 12 goods of either type d) Find the price that the firm is supposed to charge for each good. e) Estimate the new optimal profit if the production quota increases to 15 unit(a) Explain why a monopolistically competitive firm’s profit maximization occurs at the output level when marginal revenue for the firm is equal to its marginal cost. Use a graph to prove your point for a monopolistically competitive firm. (b) What can a monopolistically competitive firm do to try to maintain economic profits?23 cements nents sions us es les eButton millan Learning borations m gle Drive rse Materials Answer the questions based on the following graph that shows the cost and revenue curves of a monopolistically competitive firm operating in the Toy Bear industry. 10 9 8 7 6 S 5 4 3 2 1 0 0 1 2 3 A MR 4 5 Quantity 6 7 MC ATC Demand 8 9 10 (a) Is the firm whose cost and revenue curves shown above in short-run equilibrium? Explain. (b) Using the labeling from the graph, identify each of the following at the profit-maximizing output. (i) The average total cost (ii) The output produced (c) Using the labeling from the graph, identify each of the following if this were a profit- maximizing perfectly competitive firm. (i) The average total cost Time Attem 59 M