All of the following are characteristics of long-run equilibrium for firms in a monopolistically competitive market except: A. price equals marginal cost. B. price equals average total cost. C. price exceeds the minimum of average total cost. D. marginal cost equals marginal revenue
Q: If the Fed sells the U.S. $200 million in government bonds, the total money supply will: O not…
A: Money supply, frequently alluded to as the money stock, alludes to the aggregate sum of money…
Q: 1. An increase in the aggregate demand curve will, in the short run, change: a. neither…
A: Aggregate demand refers to the overall demand of the goods and services by a nation in a period of…
Q: Which of the following will likely lead to an increase in real GDP in the U.S. Group of answer…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: 1. Suppose that a monopolist has a patent for widgets and the market demand curve Q(P) is: Q(P) = 60…
A: Elasticity of demand, often referred to as price elasticity of demand, is a measure of how…
Q: On the previous graph, use the green rectangle (triangle symbols) to indicate the domestic revenue…
A: A tariff is a tax imposed by one country on the goods and services imported from another country to…
Q: (1) Qd 60 70 90 100 110 (2) Od 50 60 70 80 90 (3) Price Multiple Choice $ 12 11 10 9 8 Os 80 70 60…
A: Supply basically refers to the quantity of goods or service that a seller is willing and able to…
Q: 8. Shifts in supply or demand I The following graph shows the market for donuts in Dallas, where…
A: The equilibrium point describes the economic balance that exists in the market place due to…
Q: The federal funds rate is the interest rate that:
A: The “federal funds rate” is like the interest on that loan – it’s what the bank with extra reserves…
Q: Using the midpoint method, the elasticity of Caroline's labor supply between the wages of $15 and…
A: Elasticity of supply is the responsiveness of the quantity supplied to the change in the price…
Q: uppose that you are currently charging $10 for your product and selling 10,000 items. Calculate your…
A: The current price is $10 and quantity sold is 10,000 units. There is an increase in price to $11,…
Q: Greebies cost $100, and then the government puts a $50 sales tax on Greebies. (This means the tax is…
A: Sales tax refers to the tax imposed on consumption of goods and services by the government. It is…
Q: When net capital flows are negative, A. net foreign investment is negative. B. capital…
A: Capital account refers to the account of any country that measures the net capital flows in that…
Q: This figure shows the marginal cost and marginal revenue curves for Beautiful Cars. Which of the…
A: Marginal revenue is revenue gained by selling additional unit of good.Marginal cost is rise in cost…
Q: Scenario: Assume that there are five apartments located at different distances from an individual's…
A: There are 5 apartments to choose from .Based on their location they are as follows-1 ) Very Close…
Q: Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $210…
A: Negative externalities or external costs are harmful side effects arise out of production or…
Q: Which of the following statements is correct concerning a typical firm operating under conditions of…
A: Monopolistic competition is a type of imperfect competition where there are many sellers in the…
Q: Table 1 Real GDP Consumption Planned Investment Government Purchases Net Exports $2,000…
A: As demonstrated after WWII, Keynesianism has advanced in its ability to overcome economic downturns…
Q: Consider the market illustrated in the figure to the right. Supply curve S, represents the private…
A: Consumption ExternalityConsumption externality is an external cause that occurs during the…
Q: Natale is a skilled theater artist. She is offered a job as a manager in a bank with an annual…
A: In this case, we have to discuss the term opportunity cost. Opportunity cost shows the forgone value…
Q: One bag of coffee beans is sold for $5 to a cafe that uses it to brew coffee which it sells to…
A: Gross Domestic Product (GDP) is the total value of goods and services produced within the domestic…
Q: Economics is generally concerned with O the operation of banks in the stock market. O business…
A: Economics is a social science of human behavior that is concerned with the allocation of resources…
Q: County A & Country B both recorded an increase in real GDP of 5% per year from 1970 to 2005. During…
A: Country A increases real GDP by 5% per year. The population increased by 7% in country…
Q: Refer to Figure 1. In the figure above, if the economy is at point A, the appropriate monetary…
A: Monetary policy is the tool used by the central bank to change the aggregate demand by regulating…
Q: Use the table to find GDI, GDP, gross private domestic investment, personal income, and personal…
A: The calculation of GDI, GDP, gross private domestic investment, personal income, and personal…
Q: Refer to the diagram for a private closed economy Odo no change as GDP increases. increase by $2 for…
A: Aggregate expenditure is the total spending on final goods and services at each level of income.…
Q: At the best affordable point, which statement is true? A. The highest affordable…
A: Affordable:A bundle for a given good or service is said to be affordable when a person has enough…
Q: Over the last few decades, Americans have become more likely to use daycare for their young children…
A: Daycare is a service that is produced and consumed in the marketplace. When parents pay for daycare,…
Q: An example of a nominal variable is the: Lütfen birini seçin: O a. quantity of goods produced in a…
A: A nominal variable is a variable that measures something in terms of units, but the units themselves…
Q: Suppose that a monopolist has a patent for widgets and the market demand curve Q(P) is: Q(P) = 60 –…
A: Market demand equation: .... (1)In the monopoly market, there is only one seller so the…
Q: Price of Carnations $14 12 10 8 6 4 2 100 200 300 400 500 Tariff Refer to Figure #2. Opening trade…
A: A tariff is a tax that is imposed on imported goods and services and it increases the price of that…
Q: Suppose the combined abatement standard is set at 22 units and firm J and firm K have MAC functions…
A: Marginal Abatement Cost (MAC) refers to the cost incurred by a firm to reduce an additional unit of…
Q: A simple economy produces two goods, Pumpkin Pies and Computer Games. Price and quantity data are as…
A: GDP is the gross domestic product. GDP is defined as the market value of all the final goods and…
Q: f Synergy believes Dynaco will go with a large budget, it will choose a budget. If Synergy believes…
A: Best response strategy is the strategy profile that gives the player maximum payoff corresponding to…
Q: The following table shows the monthly demand and supply in the market for orange juice in Chicago.…
A: While defining competitive equilibrium, it is stated that in a competitive market, price and output…
Q: Economy Read the following premise carefully and answer the questions specifically and in detail.…
A: Monetary Policy:Monetary policy refers to the actions and measures implemented by a country's…
Q: Suppose the market demand for shirts is given by Qd = 300 – 20P and the market supply for shirts is…
A: The demand equation: Supply equation: The supply curve shows the relation between price and quantity…
Q: A. Suppose the country of Freelandia has an MPC of .85 and a real GDP of $200 billion. If its…
A: Keynesianism has made strides in its ability to solve economic downturns by government intervention,…
Q: Refer to the following table. What is the total cost of producing five (5) units of the good? Output…
A: From the table, the variable cost of production for 4 units is $425.The marginal cost of production…
Q: Assume an individual has quasilinear preferences of the form U(x1,x2) = 3x1¹2 + 2x2. If the price of…
A: Utility maximization problem: With the given prices and the income, a consumer chooses his…
Q: Suppose the government of Iraq is deciding what kind of monetary policy and exchange rate regime to…
A: The impossible trinity, also known as the trilemma in international economics, states that it's…
Q: The market equilibrium quantity is tons of bolts, but the socially optimal quantity of boit…
A: Negative externalities or external costs are harmful side effects arise out of production or…
Q: Refer to the Figure. When the economy moves from Point A to Point B, there has been $4 0 C E A B…
A: There are two demand curves D1 and D2 and two supply curves S1 and S2. Initially, the economy is at…
Q: The nominal exchange rate is the price of one currency in terms of another currency. A nominal…
A: An exchange rate is the value at which one currency can be exchanged for another. It represents the…
Q: Which component makes up the largest part of government outlays in the federal budget of the United…
A: The outlays are considered as one of the measures through which government spending is understood.…
Q: ▼surplus is the difference between the highest price a consumer is willing pay and the price the…
A: Consumer surplus is actually tell us about benefit from purchase of a product when consmer get that…
Q: The growth in real investment spending O A. follows an erratic upward trend that is unrelated to the…
A: Investment defines the expenditure on capital goods (such as machinery, buildings, or technology) by…
Q: A binding price ceiling is imposed in the market for aspirin. At the ceiling price: a) the quantity…
A: A price ceiling is a government-imposed maximum price that can be charged for a particular good or…
Q: A consumer's preferences for food (x) and clothing (y) are represented by the utility function Ux,y…
A: Utility means satisfaction.Marginal utility is the utility derived from the consumption of an…
Q: How does lowering the tax change the gap between the price paid by buyers and the price received by…
A: Market equilibrium: At the market equilibrium demand equals to supply. Or at market equilibrium…
Q: Because patties and coco bread are often eaten together, they are complementary goods. i. Note that…
A: Demand is defined as the desired back by willingness and ability to pay by an individual. It depends…
All of the following are characteristics of long-run equilibrium for firms in a
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- What is the first item to identify when determining the short-run equilibrium for a monopolistically competitive firm? a. the total profits b. the total revenue C. the total costs d. the profit-maximizing level of outputWhich of the following statements is correct? a. In the long run, both perfectly competitive firms and monopolistically competitive firms operate with excess capacity. b. A firm operates with excess capacity when, in the long run, its level of output is below the efficient scale. c. For any firm, efficient scale is the level of output at which the average-total-cost curve is tangent to the demand curve. d. All of the above are correct.II. The figure is drawn for a monopolistically competitive firm. PRICE 140 123.33 90 56.67 100 133.33 QUANTITY MC ATC Demand MR Refer to the figure above and explain: A). In order to maximize its profit, how many units the firm will choose to produce? 100 B). When the firm is maximizing its profit, the markup over marginal cost amounts to 50 C). The firm's maximum profit is D). Efficient scale is reached beyond which level of units? 133.33
- #3) Draw a diagram of the long run equilibrium in a monopolistically competitive market. How is price related to average total cost? How is price related to marginal cost?The graph below summarizes the demand and costs for a firm that operates in a monopolistically competitive market.Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.a. What is the firm’s optimal output? unitsb. What is the firm’s optimal price?$ c. What are the firm’s maximum profits?$ d. What adjustments should the manager be anticipating?multiple choice Demand will decrease over time as new firms enter the market. Demand will increase over time as firms exit the market. Demand will remain unchanged over time.If 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 above
- Part a of question attached b) To achieve productive efficiency, this firm would need to produce ______ units? c) To achieve allocative efficiency, the firm would produce ______ and charge a price of ______ d) Is a monopolistically competitive outcome productively efficient? Is it allocatively efficient?(a) Explain the adjustment process of a monopolistically competitive firm transitioning from the short-run to the long-run. (b) Explain what is meant by the ‘advertising trap’ for a monopolistically competitive firm.Monopolistically 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.
- 3. You are hired as a consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is maximizing profit, is the market in a long-run equilibrium? If not, what will happen to restore long-run equilibrium? a. P < MC, P > ATC b. P > MC, P < ATC c. P = MC, P > ATC d. P > MC, P = ATCAssume a monopolistically competitive firm encounters a decrease in average variable cost at all output levels.We would expect: a. The price to rise and output to rise b. The price to fall and output to fall c. The price to rise and output to fall d. The price to fall and output to riseWhich of the following is true of a monopolistically competitive firm in long-run equilibrium? Group of answer choices a. It produces where price equals marginal cost, and it earns zero economic profits. b. It produces where marginal cost equals marginal revenue, and the price is equal to average total cost. c. It produces at the minimum average total cost, and it utilizes all excess capacity. d. It produces where marginal revenue exceeds marginal cost, and it earns positive economic profits. e. It produces more than the allocatively efficient quantity, and the price is greater than marginal cost.