4. Consider the short-run cost and demand data for a monopolistic competitor given in the table below. Compute the missing data. Output Total cost Marginal cost Quantity demanded Price Marginal revenue 0 $750 $180 1 120 $1165 $ 2135 2150 3 165_ 3135 4210 41205 270. 5 105 6 3456 90. 74 a) At what output level and at what price will the firm produce in the short run? What will be the total profit? (b) What will happen to demand, price, and profit in the long run?

How can a monopolistic competitor tell whether the price it is charging will cause the firm to earn profits or experience losses?

Suppose that, due to a successful advertising campaign, a monopolistic competitor experiences an increase in demand for its product. How will that affect the price it charges and the quantity it supplies?

2. Understanding excess capacity The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run. Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow. Quantity Price Total Cost Marginal Cost (Board games) (Dollars per game) (Dollars) (Dollars) 123456 15.00 15 12.00 20 10.00 27 8.00 32 6.00 35 6 7 8 4.00 42 3.00 48 1.00 56 Total Revenue (Dollars) Marginal Revenue (Dollars) Average Total Cost (Dollars) Under monopolistic competition, a typical firm will produce board games at a price of $ per board game in the short run. Based on your calculations, the firm will Fill in the Average Total Cost column in the previous table. Based on your calculations, the level of excess capacity in this monopolistically competitive market is

The graph below shows cost and revenue curves for a monopolistically competitive firm. Price $2.00 $1.75 $1.50 $1.25 $1.00 $0.75 $0.50 $0.25 0 20 40 60 MR Quantity It will charge a price of $ ATC MC D 80 100 120 140 160 This monopolist's profit-maximizing output level is on the x-axis.] units. [Watch for the scale

QUESTION 11 Price and costs (dollars per calculator) 20 000 16 12 8 0 100 MC ATC O MR 200 300 400 500 600 Quantity (calculators per day) The figure above shows the situation facing Smart Digit, Inc., a firm in monopolistic competition that produces calculators. What quantity does the firm produce? more than 300 calculators per day and less than 400 calculators per day 300 calculators per day 400 calculators per day 200 calculators per day

7. The figure shows the monopolistically competitive market for smartphones. Plot the profit-maximizing price and quantity on the graph. Is this producer earning positive or negative profits in the short run? In the long run, will supply or demand for this producer's good be affected? Will economic profits increase or decrease for this producer?

2. Understanding excess capacity The following table shows the daily cost data and demand schedule for a typical firm producing board games in a monopolistically competitive market in the short run. Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the following table and then answer the questions that follow. Total Cost (Dollars) Total Revenue (Dollars) Quantity (Board games) 1 2 3 4 5600 7 8 Price (Dollars per game) 15.00 13.00 12.00 10.00 7.00 5.00 3.00 1.00 Based on your calculations, the firm will 11 20 27 36 45 60 70 104 Under monopolistic competition, a typical firm will produce Fill in the Average Total Cost column in the previous table. Marginal Cost (Dollars) AAAAAAA board games at a price of $ Marginal Revenue (Dollars) AAAAAAA Based on your calculations, the level of excess capacity in this monopolistically competitive market is Average Total Cost (Dollars) per board game in the short run.

Refer to Figure 1. If the market price is $2, what the firm will do? Enable Editing 4) Use the figure below to answer the following questions. Price and cost (dollars per unit) 80 MC 60 40 ATC 20 MR 20 40 60 80 100 Quantity (units per week) Figure 2 a) Refer to Figure 2 If this firm is in monopolistic competition, what is its output? b) Refer to Figure 2 If this firm is in monopolistic competition, what is the price it will charge? c) Refer to Figure 2. What is the firm profit situation? What time frame equilibrium is the firm? d) Refer to Figure 2. If this firm in monopolistic competition is in short-run equilibrium, and the firm making profit what will happen in the long run to the firm profit? explain

You're the manager of a firm that has constant marginal cost of $6. Fixed cost is zero. The market structure is monopolistically competitive. You're faced with the following demand curve: $12 10 Price 8 6 4 2 0 3 Demand 100 200 300 400 500 600 Quantity Show Transcribed Text a. Determine graphically the profit-maximizing price and output for your firm in the short run. Demonstrate what profit or loss you'll be making. (Please draw a graph) b. What happens in the long run?