What's happening here for a firm in a monopolistic competition market? The firm is losing money in the short run and will shift the ATC function down. The firm is making a profit in the short run and will reduce ATC to the minumum point. The firm is making a profit in the short run and may expand output over time. The firm is losing money in the short run and may leave the market eventually.

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

How short-run profit or losses induce entry or exit Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). 2. How short-run profit or losses induce entry or exit Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss 500 400 350 300 ATC 250 * 200 150 100 MO MR 450 50 30 PRICE (Dollars per l 0 Demand A 0 50 100 150 200 250 300 350 400 450 500 QUANTITY…

In the short-run, a monopolistically competitive firm: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b will produce at the point where marginal revenue is greater than marginal cost, in order to maximize profits. Your answer C can earn only a normal profit. d will produce at the point at which price equals minimum ATC, to maximize profits. will shut down temporarily if price is less than AVC.

In monopolistic competitive markets, one effect of successful advertising is that    Question 13 options:   a firm's perceived demand curve will become more elastic.   a firm’s perceived demand curve will become more inelastic.   demand for the firm’s product will increase.   both b and c will occur.

What are the characteristics of monopolistically competitive markets? If the price of the product in a monopolistically competitive market increases what happens to the number of individual firms in the market and to the level of profit in the long run? Fully explain your answer.

Which of these businesses are in monopolistic competition? Two clothing shops, one selling women clothing and the other selling kids clothing Two agricultural producers, each selling a variety of kinds of citrus fruit Two pet stores, one of which sells dog products and the other of which sells bird products Two phone providers, each offering benefits to customers who switch to its service

Which of the following is a characteristic of monopolistic competition? Group of answer choices Same products Competition only over price Easy entry and exit. One firm

If monopolistically competitive firms in an industry are making an economic profit, then new firms will enter the industry and the product demand facing existing firms will         increase.        become less elastic.        not be affected.        decrease.

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.