Consider the following market for Tim's Terrible T-shirts a firm company producing in themonopolistically competitive t-shirt market.MC$14$12ATC$10$8$6$4$2MR0.10304050607080QuantityPrice20 Should Tim want to maximize his profit in the short-run, how many t-shirts will heproduce?

Given that the market structure is monopolistic competition, the profit maximizing condition is MC=…

Answered: Should Tim want to maximize his profit…

Business

Economics

Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 6SQP

See similar textbooks

Related questions

Q: Sarah's profit-maximizing amount of output is sandwiches/day.

A: The condition for profit maximizing level of output in monopolistic competitive market is at where:-…

Q: In doorknob manufacturing industry, you observed that the firms are making losses. In the long run…

A: In doorknob industry, when the firms are making losses, some firms will exit the market. In the…

Q: Do entry and exit occur in the short run, the long run, both, or neither?

A: In the short run, the firms have one or more fixed factors of production. The firms cannot change…

Q: An accountant and an economist are looking at a firm’s records and market situation. The accountant…

A: The money spent to purchase the factors of production to purchase the goods is termed as the cost of…

Q: When would a seller possibly decide to exit the industry over the long run? What should product…

Q: Why can't firms enter the market in the short-run?

A: There are various types of market structures which have different characteristics of the number of…

Q: In the short run, what quantity does Lite and Kool produce, what price does it charge, and does it…

A: Monopolistic competition refers to a market structure in which many firms sell differentiated…

Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…

A: Perfectly competitive market: It is a market structure where there exists a large number of buyers…

Q: What are three short-run outcomes in the perfect competition?

A: In the short-run, the perfect competitive firms, can have three outcomes.

Q: Why would a firm that is making loss in the short-run choose to operate rather than shut down?

A: A short run is a time period in which a firm incurs both fixed cost and variable cost. A long run is…

Q: Tomas is the general manager for a local automated car wash. The market he operates is perfectly…

A: Perfect competition is a market structure in which there are many buyers and sellers. The price is…

Q: Are Shoppe and Lazada considered as a perfect competition? Why do you think that is?

A: Economics, as a subject, deals with the allocation of scarce resources among humans with unlimited…

Q: Why do a firm's profit disappear in the long run?

A: The firms operating in the long run, have to adjust and abide by the time frame which would allow…

Q: What is profit

A: Profit = Revenue - costs

Q: WHY SOME FIRMS MIGHT BE ABLE TO CONTINUE TO MAKE AN ACONOMIC PROFIT IN THE LONG RUN?

A: A monopoly occurs when a single person or corporation serves as the exclusive supply of a certain…

Q: Why would a firm that incurs losses choose to produce rather than shut down? Why could this choice…

A: In short run firm exhibits return to factor where only one factor is variable and another factor is…

Q: How do you define 'profit

A: The main objective of the firm in whether competitive or imperfect competition market is Profit…

Q: What are the advantages of pure competition?

A: Answer: A purely competitive business is the most efficient type of operation. This is due to the…

Q: How did you get the perfect competition values

A: Perfect competition market is that market where large number of buyers and sellers of the commodity…

Q: Suppose a resturant in a city making above normal profit in the short run. How will the market…

A: A restaurant is operating in a monopolistic competitive market structure.

Q: what are the maximum profits this firm can earn?

A: A competitive market is a typical market that answers the demands for goods and services. A…

Q: Sterling runs a donut shop which which is being operated in a perfectly competitive market where…

A: Firms in perfectly competitive market, are price taking firms because there are a large number of…

Q: Price = $20, quantity = 400 units, unit cost = $15,implicit costs $ = 4,000. What does economic…

A: Given: Price = $20, Quantity = 400 units, Unit cost = $15, Implicit costs $ = 4,000 To find: econom

Q: When will a business shut-down in the short-run?

A: Short-run: - it is a short time period in which some factors of production are variable and some are…

Q: Are condominiums considered imperfect competition or perfect competition in the market?

A: Market structures can be classified into four major categories. The following states the market…

Q: Why does exit occur?

A: When the firms earn less than their total cost of production, they make loss. If existing firms in…

Q: If the firms are earning abnormal profit how will the number of firms in industry change?

A: According to the given question In Simple words we can say that the abnormal profits are the profits…

Q: What does it mean to be operating a firm in the "long run?"

A: "Since you have asked multiple questions, we will only first question for you. If you have any other…

Q: Aji owns a rental space in New York and is thinking of opening a restaurant in that space. An…

A: Introduction: The accounting profit can be calculated by subtracting the explicit cost from the…

Q: At his profit maximizing output, what is the total profit earned by Tim?

A: Answer: A monopolistically competitive firm maximizes its profit where the marginal revenue (MR) is…

Q: What is profit maximizing output?

A: The profit maximizing output is determined by equating marginal revenue with marginal cost.The…

Q: . Which is the other name that is given to the average revenue curve?

A: The average revenue curve represents the revenue per unit for different quantities of output.

Q: What are the requirements for a perfect competition market?

A: Competitive market: - it is a market condition where there are many buyers and many sellers in the…

Q: Can you give examples of companies with perfect competition?

A: The markets refer to the place where the buyers, and sellers interact. In the markets, the sellers…

Q: Bubba's Bait and Tackle is maximizing profits, so it must be producing where :حد د واحدا i. MR = 0.…

A: Any non profit organisation works for profit maximization. Profit can be calculated as the…

Q: What is the firms profit or loss?

A: A firm in an exceedingly competitive market wants to maximise profits similar to the other firm.…

Q: In a business where, fixed costs are very high (i.e. the production of a new Music CD, or the…

A: Marginal cost refers to the additional cost of production incurred in the process of increasing…

Q: How do you calculate marginal cost and marginal revenue?

A: Marginal revenue: Marginal revenue refers to the additional revenue that made by selling of one…

Q: Draw a graph to show the breakeven point, shutdown point and supply curve.

A: Answer: Break-even point: break-even point is the point where the total revenue is equal to the…

Q: Explain profit ?

A: The average sales price multiplied by the number of units sold equals revenue. Net income is…

Q: Why do firms, in the long run, continue to stay in the industry if they are earning 0 profits?

A: Answer - In the long run where the every input can vary and as in the long run where firms can make…

Q: What is Perfect competition?

A: Meaning of Market: The term market refers to the situation under which the producers or the…

Q: How does a change in the response rate affect profit?

A: A response rate refers to a rate that shows the number of people or participants who have responded…

Q: What tells you the profit a company makes on each item it sells? ROA EPS O ROS O ROE

A: Profit is the difference between the tital cost incurred in the production process and the tital…

Q: To produce x units of t-shirts costs C(x) = 7.50x + 1200. The revenue is R(x) = 16x. a) Find the…

A: At break even, total revenue is equals to total cost.

Question

Consider the following market for Tim's Terrible T-shirts a firm company producing in the
monopolistically competitive t-shirt market.
MC
$14
$12
ATC
$10
$8
$6
$4
$2
MR
0.
10
30
40
50
60
70
80
Quantity
Price
20

Should Tim want to maximize his profit in the short-run, how many t-shirts will he
produce?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

As you review the Facebook site, you note that packagingfor your company’s bread uses the words “heart-healthy.”Would you bring this to the attention of the marketing groupresponsible for product packaging? Or would you look fora way to obscure the package design online? Defend youranswer.
Given that this firm is producing in a Monopolistic Competition (M.C.) market structure (with, e.g., 30 fırms), suppose this market were to transform, over time, into an oligopoly type of market structure, with only 3 fırms dominating all the national sales. Describe one advantage, plus one disadvantage, of oligopolies to society (hint: pricing behavior, types of efficiency, etc.) Edit View Insert Format Tools Table 12pt v Paragraph v BIU Av MacBook Pro -> G Search or type URL & %23 %24 6 7 9. deleto 3 4 E RI T Y. U tab G H. ps lock
The graph below is for Chic and Sharpe Ltd., a firm in the women's garment industry, which is monopolistically competitive. Cost and revenues 70 60 50 40 30 10 0 Seleg v Select Quantity per period Select Select v 10 20 30 40 50 60 70 80 90 O Search Prev 1 of 6 HHH Next >
estion 5 оT 16 Westchesser Gloves is a monopolistically competitive firm that sells leather gloves. Use the graph to highlight the area of profit or loss and answer the questions. 10 Average cost Profit or loss Marginal cost 8 7 4 3 Demand 1 Marginal revenue 10 20 30 40 50 60 70 80 90 100 Pairs of gloves (in thousands) Price per pair ($)
Identify atleast 2 pricing strategy being implemented by: 1. Agusan del Norte Electric Cooperative (ANECO) 2. Holcim 3. Mitsubishi 4. Pizza Hut 5. Cebuana Lhullier Support your answer.
Aside from advertising, how can monopolistically competitive films increase demand for their products?
What are the typical orientation of the markets and audiences for new online media producers?
9 of 15 Warwick Inc. produces in a monopolistically compettive market. Which of the following corectly explains howa fmin this market struchure would transition trom the short run to the long run? O The supemomal profits eamed by Warwick Inc in the short run will attract new firma into the market. This wil shit the market supply curve to the right, which will reduce the market price and the price faced by Warwick ine. The price wil keep falling until Average Revenue equals Average Cost and only normal profits are made. O The supermormal profits eamed by Warwick Inc. in the short run will attract new firms into he martet. This wil shit Warwick ine. demand curve to the left and t wit continue to shit left until Average Revenue equals Average Cost and only normal profits are made O The supemomal profits eamed by Wanwick Inc. in the short run will lead to the market demand aurve shifing to the right, which will raise the price fims can sell at and ts wil atract now frms into the market.…
The following graph shows the daily demand curve for bippitybops in Detroit. Use the green rectangle (triangle symbols) to compute total revenue at various prices along the demand curve. Note: You will not be graded on any changes made to this graph. PRICE (Dollars per bippitybop) OTAL REVENUE (Dollars) 2400 1600 100 90 1200 80 1000 70 800 60 50 40 30 20 2200 + 10 2000 + 1800 + 0 1400 + Calculate the daily total revenue when the market price is $90, $80, $70, $60, $50, $40, $30, and $20 per bippitybop. Then, use the green point (triangle symbol) to plot the daily total revenue against quantity corresponding to these market prices on the following graph. (?) 0 ** B Demand 80 10 20 30 40 50 60 70 QUANTITY (Bippitybops per day) 90 100 Total Revenue A ? Total Revenue
Which of the following is a better social media vehicle choice for Denny's to attract the millennial audience? YouTube O A corporate blog A company website Instagram All of the above DOO
Study Tools ins ess Tips ss Tips PRICE (Dellars per engine) 288 RSS #RR 100 50 30 20 10 MO 0 0 10 ATC MR Demand 20 30 40 50 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unt Cost Decause this market is a monopolistically competitive market, you can tell that it is in long-run equilibrum by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimum
Costs and Revenues (dollars per room) 200 180 160 140 120 ➜ 100 80 60 40- 0 5 10 Market for Monica's Hotel 15 20 25 30 35 Quantity (rooms) 40 D₂ MC ATC MR 45 50 Multiple Choice Question Use the graph of a monopolistically competitive firm above to answer the following question. What is the amount of profit or less Monica will make at the profit maximizing price and quantity? O Profit of $2000 O Profit of $0 O Loss of $2000