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- Assuming that the monopolistic competitor faces the demand and costs depicted below and finds the profit maximizing level of output, what will be the firm’s revenue? A graph showing four lines: D1, MC1, AVC1 and ATC1. The horizontal line D1 is at y=20. The curved line MC1 starts at approximately (0,11), curves down to approximately (4,2), curves up to cross AVC1 at approximately (10,16), crosses D1 at approximately (11,20), crosses ATC1 at approximately (12,24), and ends at approximately (13,32). The curved line AVC1 starts above D1 at approximately (2,27), curves down to cross D1 at approximately (5,20), curves down to cross MC1 at approximately (10,16), curves up to cross D1 again at approximately (17,20), and ends at approximately (17,21). The curved line ATC1 starts above D1 at approximately (3,34), curves down to cross MC1 at approximately (12,24), and curves up to approximately (18,28). Group of answer choices $106 $116 $96 $72Why does price elasticity of demand play such an important role in Ogligopolistic markets?Candy bars are produced in a monopolistically competitive market. A profit-maximizing producer finds that marginal revenue equals marginal cost equals $1.50 when output is 500 bars. Also, The average total cost (ATC) is $3 and price is $2 when output is 500 bars. An economist studying this information can conclude that economic profit is -$500 -$450 -$300 $100
- A decrease in the number of competitors in a monopolistically competitive market causes an increase in the price elasticity of demand for the output of each of the remaining firms in the market.Exercise 5.1 Describe with the help of graphs the long-term equilibrium of a monopolistically competitive market. What is the relationship between price and ATC? And between the price and the MC?Q9. A fundamental feature of a monopolistic market is that the firm a) can sell any quantity it desires at the current market price b) can obtain any price for any quantity of output c) faces a perfectly inelastic demand curve d) faces the price and quantity trade-off dictated by market demand
- The market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is: P = 8 - 0.005Qd where P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output. a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw? b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh? c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…Because of substantial barriers to entry, monopolistically competitive firms can easily earn long run economic profits. is this true or falseWithin a monopolistically competitive industry, it would be expected that Group of answer choices firms will make a positive economic profit in the long-run. in the long-run, a typical firm’s price is greater than their average cost. in the short-run, an innovative firm’s price is greater than their average cost.
- What would cause a monopolistic competitive optometrist to face a down-ward sloping demand curve?Describe how an oligopolist is more likely to earn a profit in the long run compared to monopolistically competitive firm.If a manufacturer of road bikes operates is a monopolistically competitive market, what does it mean about the products offered by itself and its competitors? Manufacturers offer an array of products that are distinctly similar in a particular way. Manufacturers offer an array of products that are virtually identical on the competition spectrum. Manufacturers offer an array of products that are at opposite ends of the competition spectrum. Manufacturers offer an array of products that are distinctly different in a particular way.
