Examples from Miami and Israel indicate that labor migration sometimes: O reduces wages in both the source nation and the destination nation. O has no negative effect on wages in the destination nation. O increases labor productivity. O changes the labor market so that competition for workers rises.

Examples from Miami and Israel indicate that labor migration sometimes: O reduces wages in both the source nation and the destination nation. O has no negative effect on wages in the destination nation. O increases labor productivity. O changes the labor market so that competition for workers rises.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 10P

See similar textbooks

Similar questions

Which of the following is a characteristic of monopolistic competition? O few sellers O homogeneous product zero long-run profits O barriers to entry OO
The profit-maximizing firm illustrated in Figure operates in a monopolistically competitive industry. Which of the following best explains what happens in the long run? Price 4 O MC ATC AVC D MR Quantity
What is an assumption of the model of monopolistic competition? O Consumers lack adequate information about the prices and qualities of products. O There are significant barriers to entry in the market. O There are only a few firms in the industry. O Nonc of thesc choices.
Which of the following is true for a monopolistically competitive industry? * There are many firms, each with a small market share. The firms in the industry produce a standardized product. Firms are price-takers. There are considerable barriers to entry. O There is a small number of independent firms.
A monopolistically competitive firm has a total cost curve represented by TC = 250+ 3Q + Q² and a marginal cost represented by MC = 3 + 2Q. The firm faces the demand curve P = 99 - 2Q. What do we expect to happen in the long run? O Firms will exit the industry, but if this firm remains its profits will increase. O The firm will earn an economic profit in the long run. O Additional firms will enter the industry and this firm's profit will decrease. O This firm will sell its product at marginal cost. MacBook A esc 800 F1 F2 F3 F4 2$ 4 W R T Y ock G %24 2
Which of the following is the best example of a monopolistically competitive industry? O land-based long distance telephone service O wheat farming O the local electricity producer manufacturing of shirts O cable television
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. PRICE (Dolars per kit) 100 8 80 70 50 8 10 0 MO 10 ATC 20 30 O True O False MR 60 70 QUANTITY (Thousands of kits) Demand 40 80 90 100 Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is True or False: This indicates that there is excess capacity in the market for kits. at the optimal quantity for each the minimum average total cost.
$100 $90 MC АТС $80 $70 $60 $50 $40 $30 Demand = P $20 $10 MR $0 10 20 30 40 50 60 Output (Q) The firm shown in the diagram above is in long run equilibrium in a monopolistically competitive market. According to the graph, the Markup is Select one: а. $50 O b. $30 O c. $40 O d. $60
Which of the following describes the long run equilibrium for a firm in monopolistic competition with free entry? Select one: O Price = Average Total Cost, Price > Marginal Cost O Price > Average Total Cost, Marginal Revenue = Marginal Cost O Price > Average Total Cost, Price = Marginal Cost O Price = Average Total Cost, Marginal Revenue > Marginal Cost
The graph below shows the demand curve for a perfectly competitive firm. Suppose that firms in this industry discover a way to differentiate their products. Using the line drawing tool, show how the firm's demand curve would be likely to change. Label the new demand curve 'd,'. Carefully follow the instructions above, and only draw the required objects. Since the demand curve is downward sloping, the monopolistically competitive firm will set a price OA. that is less than marginal cost. B. that is unrelated to marginal cost. OC. that is equal to marginal cost. D. that is greater than marginal cost. Price 10- Q Q Output 10
A perfectly competitive firm is onsidered to be more generous in terms of price and quantity of output in comparison to firm belonged to monopoly and monopolistic markets. C. If firms incurring loss in this market begin to exit the market, what will happen to the market equilibrium? Demonstrate your answer using a simplified graph. d. The firm wishes to supply output more than the quantity determined under the equilibrium condition, is it worth to pursue?
Please dont copy and paste the answers One of your former peers starts up a firm after graduating NYUAD. However, he didn’t take Markets so is unsure if he is behaving optimally. He’s asked you for help. His firm faces monopolistic competition, has diminishing returns to its inputs and uses a fixed input. He is producing at a quantity such that P=MC, and he makes a positive profit. a. Draw the Demand curve, MR, MC, and ATC reflecting this situation on a graph. Label the quantity, price and profit of the firm under his strategy. b. Is his strategy maximizing his profits? Explain how he would do so if not. Label the quantity, price and profit of the firm under the optimal strategy on your graph in part a. c. He asks you about what you predict might happen to his profits in the future. What do you expect will happen to profits in this industry as we go to long run and why? What is the key assumption of monopolistic competition that gives you your conclusion?