Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answerthe following questions.$40$35$30MCATC$25$20$17.50$15$10$4.40$53.25MRDemand12 3 4 5 67 8 910QuantityInstructions: Round your answers to 2 decimal places.a. What is total revenue for this firm?b. What is total cost for this firm?c. What is this firm's economic profit?d. This firm is most likely in (Click to select)V equilibrium becauseInstructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once toplace a check mark. For incorrect answer(s), click the option twice to empty the box.? MR = MC.? the firm is experiencing economic profits.2 the firm is experiencing normal profits.? P> MC.? demand exceeds marginal revenue.? P= ATC.Price and costs

A monopolistically competitive market is characterized by large number of buyers and sellers,…

Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $40 $35 $30 MC ATC $25 $20 $17.50 $15 $10 $4.40 $5 3.25 MR Demand 1 2 3 4 5 7 8 10 uantity Instructions: Round your answers to 2 decimal places. a. What is total revenue for this firm? b. What is total cost for this firm? c. What is this firm's economic profit? 2$ Price and costs

Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $40 $35 $30 MC ATC $25 $20 $17.50 $15 $10 $4.40 $5 3.25 MR Demand 1 2 3 4 5 7 8 10 uantity Instructions: Round your answers to 2 decimal places. a. What is total revenue for this firm? b. What is total cost for this firm? c. What is this firm's economic profit? 2$ Price and costs

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 1.1P

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Make a case for why monopolistically competitive industries never reach long-run equilibrium.
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Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. $40 $35 $30 MC ATC $25 $20 $17 A $15 $10 4.40 $5 3.25 MR Demand 3 4 5 7 8 9 10 Quantity Instructions: Round your answers to 2 decimal places. a. What is total revenue for this firm? $56.88 b. What is total cost for this firm? $ $58.88 c. What is this firm's economic profit? d. This firm is most likely In long-run ]equilibrlum because Instructions: In order to recelve full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For Incorrect answer(s). click the option twice to empty the box. ? P= ATC. ? P> MC. ? MR = MC. 2 the firm is experlencing normal profits. 2 the firm is experlencing economic profits. 7 demand exceeds marginal revenue. Price and costs
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Week #8 Assignment: 2. Sub-subje Monopolistic Competitor What is the profit - maximizing output level? What is the firm's proft - maximizing price? Is this firm productively efficient? Will the firm eam a profit or loss at the profit - maximizing output level? How much is that profit or looss? Based on this information, do you think fims will enter or exit this industry? Why or whynot?
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Price $1.40 $1.00 $0.95 $0.85 $0.60 MC WATC D 0 300 500 900 1000 Quantity The short-run equilibrium price for the monopolistically competitive firm represented in the graph above is: $0.95. $1.00. $0.60. $0.85. MR