I only need answers for the highlighted sections please :) 7. The diagram below shows the demand and cost situation of a firm in a monopolisticallycompetitive industry.1412AV10ie 10 20 pO so 0 20 00 0 100 110 12o 130 140 15o I60 170 10Oa. What output will this firm choose? Why?b. What price will it charge? Why?c. What is total revenue and total cost at the profit maximizing output?d. What is its per unit profit? What is its total profit?e. Is this a long run equilibrium situation? Why or why not?I8I d naa pu a

In a monopolistic competitive firm there are large number of firms selling similar products thus…

competitive industry. 14 II MC 12 11 II:: e 10 20 3 O 0 70 0 0 100 110 120 130 t40 150 160 170e 100 a. What output will this firm choose? Why? b. What price will it charge? Why? c. What is total revenue and total cost at the profit maximizing output? d. What is its per unit profit? What is its total profit? Te thie a long nun couilibrium situation? Why or why not? I dna

competitive industry. 14 II MC 12 11 II:: e 10 20 3 O 0 70 0 0 100 110 120 130 t40 150 160 170e 100 a. What output will this firm choose? Why? b. What price will it charge? Why? c. What is total revenue and total cost at the profit maximizing output? d. What is its per unit profit? What is its total profit? Te thie a long nun couilibrium situation? Why or why not? I dna

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 1QCMC

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Similar questions

Aside from advertising, how can monopolistically competitive films increase demand for their products?
If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
How can a monopolistic competitor tell whether the price it is charging will cause the firm to earn profits or experience losses?
What is the relationship between product differentiation and monopolistic competition?
How does a monopolistic competitor choose its profit-maximizing quantity of output and price?
Make a case for why monopolistically competitive industries never reach long-run equilibrium.
Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to charge to maximize profits. The first two columns in Table 10.5 provide the price and quantity for the demand curve for treatments. The third column shows its total costs. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?
Continuing with the scenario in question 1, in the long run, the positive economic profits that the monopolistic competitor earns will attract a response either from existing firms in the industry or film outside. As those films capture the original films profit, what will happen to the original films profit-maximizing price and output levels?
PRICE (Dollars per engine) 100 90 80 70 60 40 30 & 2 20 10 MO D 0 10 ATC MR Demand 20 30 40 50 60 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimum
Consider the following market for Tim's Terrible T-shirts a firm company producing in the monopolistically competitive t-shirt market. $7 $6 $5 $3 $2 $1 0 Question 16 10 20 30 Question 17 MR 40 Quantity MC D 50 60 70 80 At his profit maximizing output, what is the total profit earned by Tim? Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce? ATC Describe what we expect to happen to Tim's terrible t-shirts in the long run. Since Tim is making |Select] to participate in the market. As a result, the demand for Tim's shirts should Select] Please answer all parts of question correctly. will give thumbs up if correct ✓economic profit in the short-run, as he transitions to the long run we would expect [Select | and become (Select]
7. The diagram below shows the demand and cost situation of a firm in a monopolistically competitive industry. 15 12 t1 e 18 20 40 so 60 70 60 10 10 110 120 1 140 150 sED 170 180 a. What output will this firm choose? Why? b. What price will it charge? Why? c. What is total revenue and total cost at the profit maximizing output? (E) al na pur a
es Mailings Review View Help a v v Po E-E-FEAT 也。 Paragraph rrice and cost Jaollars per uni 80 60 40 20 ity: Investigate V D 0 20 40 60 80 100 Quantity (units per week) 27) Refer to Figure 13.2.2. To maximize economic profit, this firm in monopolistic competition charges a price of ? 28) Refer to Figure 13.2.2. To maximize economic profit, this firm in monopolistic competition produces an output of? 29) Refer to Figure 13.2.2. This firm in monopolistic competition A) is incurring an economic loss. B) is in long-run equilibrium. C) is making an economic profit. D) must raise its price to maximize economic profit. E) will make more economic profit in the long run. (DELL) O O J MR MC Normal ATC No Spacing Styles Heading 1