Why does price elasticity of demand play such an important role in Ogligopolistic markets?

How does a monopolistic market during entry and exit affect economic profit and economic loss? Show diagram.

Which type of a firm, monopolistically competitive or a monopoly, will have a greater incentive to advertise its product? Please give an explanation.

If the price is greater than Actual total cost, does the monopolistic firm makes a profit, loss, or break-even?

The graph below shows cost and revenue curves for a monopolistic competitor producing different amounts of chairs. On the graph, suppose that: A = $55, B = $21, C = $15, E = $7, F = 13, and G = 31 Price BL BCE CP MC ATC EH MR F G Quantity Calculate the maximum profit the firm can earn

Draw a diagram that depicts the profit maximization of a perfectly competitive and monopolistic market.

what market inefficiencies derive from monopolies and monopolistic competition?

Answer all four questions! Is a monopolistically competitive firm productively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be productively inefficient. Is it allocatively efficient? How can you tell? Offer one reason why a monopolistically competitive firm might be allocatively inefficient.

Suppose that a company operates in the monopolistically competitive market for denim jackets. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? 100 PRICE (Dollars per jacket) 8 20 60 50 X ATC 20 MC MR 2 2 2 2 10 0 0 30 40 50 60 70 QUANTITY (Thousands of jackets) 10 20 80 Demand 90 100 Mon Comp Outcome Min Unit Cost

If the price is less than actual total cost for a monopolistic competitive firm, does the firm make a profit, loss, or break-even?