Suppose a firm operating in a market characterized as monopolistic competition is making positive economic profit in the short run attracting new firms to the market do we expect to happen to the demand for the this firm as new competi Demand decreases and becomes more elastic. Demand increases and becomes more inelastic. Demand increases and becomes more elastic. Demand decreases and becomes more inelastic.

Suppose a firm operating in a market characterized as monopolistic competition is making positive economic profit in the short run attracting new firms to the market do we expect to happen to the demand for the this firm as new competi Demand decreases and becomes more elastic. Demand increases and becomes more inelastic. Demand increases and becomes more elastic. Demand decreases and becomes more inelastic.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter26: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 10E

See similar textbooks

Similar questions

Refer to the graph shown of a monopolistically competitive firm. The graph shows that: Price, cost, revenue $100 $90 $80 $70 $60 $50 0 MR 7000 MC D AC 14000 12000 21000 Dresses per year some existing firms will leave the industry. the industry is in long-run equilibrium. new firms will enter the industry. the price of the product is $90.
This figure depicts a situation in a monopolistically competitive market. MC ATC PRICE 100 8 882 889 229 90 80 70 Demand MR 10 20 30 40 50 60 70 80 90 100 QUANTITY Which of the following will occur in the long-run in this industry? Firms will exit this industry. This firm will incur losses. This firm will continue to earn positive economic profits. Firms will enter this industry. 40 10 30 20
FIGURE 10-1 Price MC ATC AVC D MR Quantity The profit-maximizing firm illustrated in Figure 10-1 operates in a monopolistically competitive industry. Which of the following best explains what happens in the long run? New firms enter the industry and the firm's marginal cost curve shifts up, which leads to a decrease in the firm's O output. New firms want to enter the market but CANNOT since there are barriers to entry in monopolistic competition. The market supply curve shifts right, reducing the equilibrium market price. New firms enter the industry and the firm's demand curve shifts left and becomes more elastic.
The figure below depicts a monopolistically competitive firm operating in the short run. Label the diagram with the items listed to the right of the figure. You will have to decide whether the firm is making a profit or a loss. Profit Price 8 25 OF 50 QUESTIONS COMPLETED -> At ед MR MC Quantity D ATC C Loss Average total cost Profit- maximizing price Profit- maximizing output SUBMIT ANSWE
FIGURE 10-1 MC ATC AVC MR Quantity The profit-maximizing firm illustrated in Figure 10-1 operates in a monopolistically competitive industry. Which of the following best explains what happens in the long run? New firms enter the industry and the firm's marginal cost curve shifts up, which leads to a decrease in the firm's output. New firms want to enter the market but CANNOT since there are barriers to entry in monopolistic competition. The market supply curve shifts right, reducing the equilibrium market price. ONew firms enter the industry and the firm's demand curve shifts left and becomes more elastic. Price
A monopolistically competitive firm faces the following demand curve for its product: Price ($) 10 6. 8. 17. 6. 3 2 1 Quantity 4 6. 8. 10 12 14 16 18 20 Refer to the Table. The firm has total fixed costs of $20 and a constant marginal cost of $9 per unit. How many units will the firm produce? "Don't leave spaces before, after or in between your number.
A monopolistically competitive firm maximizes profits when it اختر احد الخيارات a. produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal cost b. produces the quantity at which marginal cost equals marginal revenue and uses the demand curve to determine the market price o .c. produces the quantity at which marginal cost equals the market price d. produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal revenue
The below figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The maximum economic profit this firm can make equal equals 25 20 MC ATC 15 10 MR D. 12 16 20 24 Quantity funits per day) Price and costs (dollars per unit
In what way(s) is a monopolistically competitive firm inefficient? Group of answer choices It charges a price lower than marginal cost. It produces where marginal revenue is equal to marginal cost. It does not produce at the minimum of its average cost curve.
Which of the following is true for a monopolistically competitive industry? * There are many firms, each with a small market share. The firms in the industry produce a standardized product. Firms are price-takers. There are considerable barriers to entry. O There is a small number of independent firms.
A monopolistically competitive firm in long-run equilibrium A. Will make a negative profit B.will make zero profit C.will make a positive profit D.Any of the above are possible
The demand curve for a monopolistically competitive firm is downward sloping because Group of answer choices a. it is easy for firms to enter or exit the market b. there are a large number of firms c. the marginal cost rises as output produced increases d. the product is produced by using scarce resources e. the products produced by different firms are not identical