Firms in monopolistic competition can achieve product differentiation by O a. setting the price equal to average revenue O b. expanding production levels O c. exploiting economies of scale O d. advertising special characteristics
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- How does a monopolistic competitor choose its profit-maximizing quantity of output and price?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?. Competitors in monopolistic competition have full control over- (A) The price of their product (B) Product quality (C) The shape of the market demand curve (D) The elasticity of product substitutions 8AM
- QUESTION SEVEN-economics(a) With well-explained examples, differentiate between Monopolyand monopolistic market structures(b) With the help of a neat and clean diagram, discuss the differencebetween change in demand and change in quantitydemanded of the firm product No chatgpt or any AI Answer No hand written solution plzQuestión 48 Which of the folowing points represents the profit-maximizing quantity and price of a monopolistic competitor? OB OEQUESTION 11 Price and costs (dollars per calculator) 20 000 16 12 8 0 100 MC ATC O MR 200 300 400 500 600 Quantity (calculators per day) The figure above shows the situation facing Smart Digit, Inc., a firm in monopolistic competition that produces calculators. What quantity does the firm produce? more than 300 calculators per day and less than 400 calculators per day 300 calculators per day 400 calculators per day 200 calculators per day
- What differentiates monopolistic competition from a monopoly?a A seller operating in a monopolistically competitive market no longar facet a downward-sloping demand curve,b. There are more seller,c. Firms can enter the market selling similar but not identical productd. (b) and (e)e. all of the aboveFigure 16-2 This figure depicts a situation in a monopolistically competitive market. 100 90 80 70 60 50 40 30 20 10 MC MR ATC Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY Refer to Figure 16-2. Assuming the firm is maximizing profit, this firm is operating a. in the short run and earning a positive economic profit. b. in the long run and incurring and economic loss. c. in the short run and breaking even. d. in the long run and earning a positive economic profit..O Search (Alt+Q) Review View Help WPS PDF EN|¶ Book Title Emphasis Paragraph Styles When a personal income increases the consumer will encourage the customers to make more dem for the goods. Therefore the demand will get increase and the demand curve will shift rightward. These will make an increase in price and quantity. Question 2: (a) Compare and contrast monopolistic competition and perfect competition market structures in the Long-run. Headin Monopolistic competition market means a market where large companies compete for the same products or services. In this companies will have few barriers to entry and departure, and one firm's decisions will have an impact on its competitors. Monopolistic competition is a hybrid of monopoly Perfect competition market (b) Would a monopolist increase society's economic welfare? Click or tap here to enter text. Question 3: (a) Define the Income elasticity of demand? Click or tap here to enter text. (b) What is a normal and an inferior good? Click…
- a. Use the information in this table tocalculate total revenue, marginal revenue, and marginal costs. Indicate the profit-maximizing level ofoutput. What market structure is this firm operating in? What would change if the structure were monopolistic competition? OUTPUT PRICE (GH¢) TOTAL COST (GH¢) 1 5 10 2 5 12 3 5 15 4 5 19 5 5 24 6 5 30 7 5 45 b. Under what circumstances would a large size provide an advantage to a firm? How could it serve as a barrier to entry? c. You and your rival must simultaneously decide what price to advertise in the weekly newspaper. If you each charge a low price, you each earn zero profits. If you each charge a high price, you each earn profits of GH¢3. If you charge different prices, the one charging the higher price loses GH¢5 and the one charging the lower price makes GH¢5.i. Find the equilibrium when there are no repeated transactions.ii. Now suppose there are repeated transactions. How would that change the results?QUESTION 9 Why demand curve in monopolistic competition market is downward sloping? ) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIUS Paragraph Arial 10pt x X2 +, ABC 1 Ω Θ | QUESTION 10 Click Save amd Submit to save and submit. Click Save All Answers to save all answers. DELL F1 F2 F3 F4 E5 F6 F7 F8 F9 F1C ) & 3 r 4 5 0 6 7 7 Y 8 A W E R $ T Ņ Y ļ U !!! 田 %24 %23Table 1. This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm. a. b. Quantity Price C. d. 0 1 2 3 4 5 6 7 8 9 10 $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 Marginal Cost $45 $40 $35 $30 $35 $40 $45 $60 $100 $180 Average Total Cost Refer to Table 1. What is this firm's profitmaximizing level of output? 0 units of output 3 units of output 4 units of output 5 units of output $80 $64 $52 $44 $40 $40 $52 $64 $80 $100