Consider a shop that produces bagels in a monopolistically competitive market. The following graph shows its demand curve (Demand), marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Assume that the company is operating in the short-run. At the profit-maximizing output and price, the shop's economic profit equals $. Note: If the firm is earning an economic loss be sure to include a negative sign. PRICE (Dollars per bagel) $7.00 $5.50 $4.00 $2.00 T I IMR 160 type your answer... D 1 1 1 1 1 I I 1 1 1 MC 230 280 ATC I I Demand QUANTITY (Bagels)

Price-discriminating firm Cho owns a plot of land in the desert that isn’t worth much. One day, a giant meteor falls on her property. The event attracts scientists and tourists, and Cho decides to sell nontransferable admission tickets to the meteor crater to both types of visitors: scientists (Market A) and tourists (Market B). The following graphs show demand (D) curves and marginal revenue (MR) curves for the two markets. Cho’s marginal cost of providing admission tickets is zero. I hope you can see a clear picture.

The figure below shows the demand (D, MR) and cost (MC, ATC) curves for Gwen's Country Curtains, operating in a monopolistically competitive industry. Demand and cost conditions facing Gwen's Country Curtains MC Dollars 80 0 ATC 1,000 MR Number of curtains per month Suppose Gwen's Country Curtains is currently producing 1000 curtains per month at a price of $80. In the short run, this company is and in the long run, it should expect to a. earning zero profit; earn zero profit b. suffering a loss; earn zero profit c. suffering a loss; shut down d. making a profit; earn zero profit

The graph shows the demand curve, marginal revenue curve, and marginal cost curve of Java Time, Inc., a producer of espresso machines in monopolistic competition. Draw a point at the firm's the profit-maximizing price and quantity. Label it 1. Draw an arrow that shows Java Time's markup. Draw the average total cost curve such that Java Time does not have excess capacity. Label it. Draw a point at the intersection of the ATC curve and the MC curve. Label it 2. Java Time's markup is $a machine. 240 220- 200- 180- 160- 140 120- 100- 80- 60- 40- 20- 04 0 Price and cost (dollars per machine) MC 100 200 300 400 Quantity (espresso machines per week) D MR 500

This profit-maximizing firm will produce Blank 1 units.   What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.)   If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.)

The graph depicts a monopolistically competitive firm. Dollars ($) 90 80 65 55 50 MC 0 ATC MR 10 20 35 45 50 Quantity of Output (Units) Refer to the above graph. This monopolistically competitive firm is: making economic profit in the long run. making economic profit in the short run making a loss in the long run. making a loss in the short run.

Refer to the graphs. The long run outcome for a monopolistically competitive firm would be represented by graph: Quantity (A) MC MC Quantity (C) ATC D MR ATC D = MR 0 10 MC Quantity (B) MC Quantity (D) D MR D ATC ATC MR

Suppose that a firm produces polo shirts 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 unification the minimum average total cost the firm faces and the quantity associated with that cost. Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that ___ at the optimal quantity for each firm. Furthermore, the quantity the firm produces in long-run equilibrium ___ the efficient scale. True or False: This indicates that there is excess capacity in the market for shirts. Monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of the ___…

PTICE and COST $40 30 23 20 10 MC ATC ATC MR AR=D 150 200 Quantity per day 0:13 Question 11 (10 points) (Exhibit: Profit Maximization for a Firm in Monopolistic Competition) Suppose that an innovation reduces a firm's fixed costs and reduces cost from ATC to ATC' Before the innovation reduced the cost, the firm's maximum economic profit was: $0. $30. $750. $4,500.

Answer choices are first blank: negative, positive, zero second blank: an equal number of, fewer, more