How might a monopolistically competitive firm continually earn economic profit greater than​ zero? To earn economic profit greater than​ zero, a monopolistically competitive firm must   A. be the first firm to enter a market to obtain​ first-mover advantages.   B. eliminate excess capacity by producing at minimum average cost.   C. rely on chance events.   D. differentiate its product and produce at lower average cost than competitors.   E. block entry of new firms with​ government-enforced patents

A public-private initiative in Texas will significantly expand the wind-generated energy through- out the state. The cash flow for one phase of the project involving Central Point Energy, a trans- mission utility company, is shown. Given reinvestment rate of 14% per year for excess funds and 10 % per year for borrowing rate for extra funds, determine: given MARR = 12% Year Net cash flow 0. -50000 1 +22000 +38000 3. -2000 4 -1000 +5000 a) How many number of ROR values is expected and why? b) Calculate the external rate of return (MIRR). c) Is the project economically viable?

Monopolistically competitive firms in the long run will do which of the following? They will produce where average cost is ________ than minimum average cost and earn ____________. a. higher; economic profitsb. lower; normal profitsc. lower; economic profitsd. higher; normal profits

Because monopolistically competitive firms produce differentiated products, they will: Select one: a. face a perfectly elastic demand curve. b. face a downward-sloping demand curve. c. be unable to create any degree of product loyalty. d. never need advertising.

What is the correct answer?

If a manufacturer of road bikes operates is a monopolistically competitive market, what does it mean about the products offered by itself and its competitors? Manufacturers offer an array of products that are distinctly similar in a particular way. Manufacturers offer an array of products that are virtually identical on the competition spectrum. Manufacturers offer an array of products that are at opposite ends of the competition spectrum. Manufacturers offer an array of products that are distinctly different in a particular way.

WataDine is one of a city’s many restaurants that serve lunch and dinner in a monopolistically competitive market. Assume WataDine, as a typical restaurant in the city, is currently producing the profit-maximizing output level, and earns positive short-run economic profit. (a) How is monopolistic competition similar to each of the following market structures? (i) Perfect competition (ii) Monopoly (b) WataDine is currently earning short-run economic profits. Draw a correctly labeled graph for WataDine in short-run equilibrium and show each of the following. (i) The profit-maximizing quantity, labeled QM (ii) The profit-maximizing price, labeled PM (c) Given that WataDine is currently earning short-run economic profits, what will happen to each of the following in the long run? (i) WataDine's economic profit. Explain. (ii) WataDine's demand curve for its restaurant meals. (d) Assume WataDine is in long-run equilibrium. (i) Is WataDine taking advantage of its economies of scale? Explain.…

In the long run, the positive economic profits earned by the monopolistic competitor will attract a response either from existing firms in the industry or firms outside. As those firms capture the original firm’s profit, what will happen to the original firm’s profit-maximizing price and output levels? Show on a graph

If new firms enter a monopolistically competitive industry, what happens to the demand for the product made by an existing firm?   a Demand will increase and become more inelastic. b Demand will increase and become more elastic. c Demand will decrease and become more inelastic. d Demand will decrease and become more elastic.

What effect does the entry of new firms have on the economic profits of existing​ firms? When new firms enter a monopolistically competitive​ market, the economic profits of existing firms   A. will decrease because their demand curves will shift to the left.   B. will remain unchanged because they sell differentiated products.   C. will increase because their demand curves will become more elastic.   D. will decrease because their demand curves will shift to the right.   E. will increase because their average cost of production will decrease.   Click to select your answer and then click Check Answer.