Selected:

(answered) - 1. Conditions for monopolistic competition Consider the

$16.00

$16.00

(answered) – 1. Conditions for monopolistic competition Consider theDescriptionSolution downloadThe QuestionGood Evening,Need assistance on attached assignment.Please provide coordinate a/o graphs for shaded areas on assignment?Thank you??1. Conditions for monopolistic competitionConsider the monopolistically competitive market structure, which has some features of a competitivemarket and some features of a monopoly.Complete the following table by indicating whether each attribute characterizes a competitive market,a monopolistically competitive market, both, or neither. Check all that apply.CompetitiveAttributesMarketMonopolistically Competitive MarketPrice is equal to marginal costIdentical productsProduct differentiationMany sellers2. How short-run profit or losses induce entry or exitFantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. Thefollowing graph shows Fantastique?s demand curve, marginal revenue curve (MR), marginal cost curve(MC), and average total cost curve (ATC).Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price andquantity for this monopolistically competitive company. Then, use the green rectangle (trianglesymbols) to shade the area representing the company?s profit or loss.*Please provide coordinates for profit or Loss & Competitive outcome*Given the profit-maximizing choice of output and price, the shop is earning _____ (a. negative b.positive c. zero) profit, which means there are _____ (a. an equal number of b. fewer c.more) shops in the industry than in long-run equilibrium.Now consider the long run in which bike manufacturers are free to enter and exit the market.Show the possible effect of free entry and exit by shifting the demand curve for a typical individualproducer of bikes on the following graph.*Provide Coordinates for the demand*Which of the following statements are true about both monopolisticcompetition and monopoly? Check all that apply.Firms earn zero economic profit in the long run.Firms can earn positive economic profit in the long run.Price is above marginal cost.Price equals average total cost in the long run.3. Entry and exit in the long runSuppose that car manufacturers in a competitive price-searcher market earn negative profits in theshort run.In this scenario, there _______ (a. are fewer b. are more c. is an equal number of) manufacturersin the industry than there would be in long-run equilibrium.Now consider the long run in which car manufacturers are free to enter and exit the market. Thefollowing graph shows the demand curve in the market for cars.Show the possible effect of free entry and exit by shifting the demand curve for a typical individualproducer of bikes on the following graph.*Please provide coordinates for Demand*Which of the following statements are true about a competitive price-searcher market? Check all thatapply.Firms face a downward-sloping demand curve.Price is above marginal cost.Firms face low barriers to market entry.Firms face high barriers to market entry.4. Understanding excess capacityThe following table shows the cost data and demand schedule for a typical firm producing boardgames in a monopolistically competitive market in the short run.Fill in the values in the Total Revenue, Marginal Revenue, and Marginal Cost columns in the followingtable and then answer the questions that follow.Quantity(Boardgames)Price(Dollarsper game)Total Cost(Dollarsper day)1$10$122$9$183$8$214$6$245$4$356$3$427$3$568$3TotalRevenue(Dollarsper day)MarginalRevenue(Dollars)$72Un

(answered) – 1. Conditions for monopolistic competition Consider the

Reviews

There are no reviews yet.

Be the first to review “(answered) – 1. Conditions for monopolistic competition Consider the”

Your email address will not be published. Required fields are marked *

Close Menu
×
×

Cart