Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 10, Problem 6SQ
To determine
Last entry point of new firms into the monopolistic competitive market.
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Students have asked these similar questions
In monopolistic competition,a firm produces 10,000 units when its marginal revenue equals its marginal cost. At this level of output, the firms
average variable cost is $4.30 and its average fixed cost is $2.10. If the firm sells the product for $5 each, at best it is earning
a. losses of $7,000.
b. a profit of $7,000.
c. losses of $14,000.
d. a profit of $14,000.
e. There is not enough information provided to answer this question.
When a monopolistically competitive industry is in long-run equilibrium: choose correct and explain your choice
a. firms earn economic profits.
b. firms earn zero economic profits.
c. price equals minimum average total cost.
d. price equals marginal cost.
Which of the following conditions does NOT describe a firm in a monopolistically competitive market?
a. It sells a product different from its competitors.
b.It takes its price as given by market conditions.
c. It maximizes profit both in the short run and in the long run.
d.It has the freedom to enter or exit in the long run.
Chapter 10 Solutions
Micro Economics For Today
Ch. 10.1 - Prob. 1YTECh. 10.5 - Prob. 1GECh. 10.6 - Prob. 1YTECh. 10 - Prob. 1SQPCh. 10 - Prob. 2SQPCh. 10 - Prob. 3SQPCh. 10 - Prob. 4SQPCh. 10 - Prob. 5SQPCh. 10 - Prob. 6SQPCh. 10 - Prob. 7SQP
Ch. 10 - Prob. 8SQPCh. 10 - Prob. 9SQPCh. 10 - Prob. 10SQPCh. 10 - Prob. 11SQPCh. 10 - Prob. 12SQPCh. 10 - Prob. 13SQPCh. 10 - Prob. 1SQCh. 10 - Prob. 2SQCh. 10 - Prob. 3SQCh. 10 - Prob. 4SQCh. 10 - Prob. 5SQCh. 10 - Prob. 6SQCh. 10 - Prob. 7SQCh. 10 - Prob. 8SQCh. 10 - Prob. 9SQCh. 10 - An oligopoly is a market structure in which a. one...Ch. 10 - Prob. 11SQCh. 10 - A common characteristic of oligopolies is a....Ch. 10 - Prob. 13SQCh. 10 - Prob. 14SQCh. 10 - Prob. 15SQCh. 10 - Prob. 16SQCh. 10 - Prob. 17SQCh. 10 - Prob. 18SQCh. 10 - Prob. 19SQCh. 10 - The kinked oligopoly demand curve is a result of...
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- In the long run, firms in a monopolistically competitive market will earn __________ profits. Question 20Answer a. Zero b. Negative c. Positive d. Unknownarrow_forwardWhen monopolistically competitive firms earn ________ profits, other firms ________ the industry in the long run. a. normal; exit b. positive economic; enter c. negative economic; enter d. normal; enterarrow_forwardA monopolistically competitive firm that earns an accounting profit in the short run Group of answer choices a. must also earn an economic profit in the short run. b. does not earn enough to earn an economic profit in the short run. c. could earn an economic profit, break even, or suffer an economic loss in the short run. d. could earn an economic profit or break even, but could not suffer an economic loss in the short run.arrow_forward
- The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are a. able to differentiate their products. b. price takers. c. large relative to the market. d. able to block the entry of other firms.arrow_forwardA characteristic of monopolistic competition is a. a low ratio of fixed to variable costs. b. product differentiation. c. a high capital-output ratio. d. the absence of advertising.arrow_forwardA profit-maximizing monopolistic competitor continues production until ________. a. marginal revenue exceeds average revenue b. marginal revenue exceeds marginal cost c. marginal revenue equals marginal cost d. marginal revenue equals average revenuearrow_forward
- Which of the following conditions does NOT describe afirm in a monopolistically competitive market?a. It sells a product different from its competitors.b. It takes its price as given by market conditions.c. It maximizes profit both in the short run and inthe long run.d. It has the freedom to enter or exit in the long run.arrow_forwardMonopolistically competitive firms use product differentiation to a.limit the number of firms in the industry. b.ensure long-run profits. c.achieve market power. d.block other firms from entering the industry.arrow_forwardMonopolistically competitive firms in the long run will do which of the following? They will produce where average cost is ________ than minimum average cost and earn ____________. a. higher; economic profitsb. lower; normal profitsc. lower; economic profitsd. higher; normal profitsarrow_forward
- The cost of producing a tube of tooth paste is $0.05. If the market for tooth paste is monopolistically competitive, a manufacturer who charges $0.05 for each bottle will ________. a. exit the industry in the long run b. earn zero economic profits in the short run c. incur a loss in the short run d. shut down production in the short runarrow_forwardWhat is true of a monopolistically competitivemarket in long-run equilibrium?a. Price is greater than marginal cost.b. Price is equal to marginal revenue.c. Firms make positive economic profits.d. Firms produce at the minimum of average totalcost.arrow_forwardIf a firm is operating in a monopolistically competitive market, then in the long run: A. the firm will maximize its profit by producing the output level at which the marginal revenue is minimized. B. the firm will earn zero economic profit. C. the firm will maximize its profit by producing the output level at which the average cost is minimized. D. all of the abovearrow_forward
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