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PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200+ LRAC 150 100 50 + MC o ° 50 100 150 MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False

PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200+ LRAC 150 100 50 + MC o ° 50 100 150 MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False

Principles of Economics, 7th Edition (MindTap Course List)
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
Problem 5PA
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PRICE PER UNIT (Dollars) 500 450 400 350 300 250 LRAC 200 150 100 MC 50 MR Demand 0 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False
Transcribed Image Text:PRICE PER UNIT (Dollars) 500 450 400 350 300 250 LRAC 200 150 100 MC 50 MR Demand 0 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False
3. Study Questions and Problems #3 The following graph represents a monopolistically competitive firm in long-run equilibrium. Place the black point (cross sign) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Next, place the grey star on the graph to indicate the point where the LRAC reaches a minimum. PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200 150 100 50 MC 0 + 0 50 100 LRAC MR Demand 150 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True O False True or False: The LRAC curve is at its minimum at a quantity of 100 units. Monopolistically Competitive Outcome Minimum of the LRAC ?
Transcribed Image Text:3. Study Questions and Problems #3 The following graph represents a monopolistically competitive firm in long-run equilibrium. Place the black point (cross sign) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Next, place the grey star on the graph to indicate the point where the LRAC reaches a minimum. PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200 150 100 50 MC 0 + 0 50 100 LRAC MR Demand 150 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True O False True or False: The LRAC curve is at its minimum at a quantity of 100 units. Monopolistically Competitive Outcome Minimum of the LRAC ?
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