The graph depicts a monopolistically competitive firm. Assuming the firm's ATC is ATC', the firm's current economic profit (per day) is_____, and its long-run economic profit is _____ Price and cost $40 30 23 20 10 $3,000; $0 $1,500; $0 $1,500; $2,500 $4,000; $3,000 150 200 MC ATC ATC AR=D Quantity (per day)
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- O Macmillan Learning The accompanying graph depicts the long-run costs and revenue for a monopolistically competitive firm. The numbers in parentheses show the output level and the cost, respectively, associated with various points. Place point A at the profit maximizing price and quantity. 800 750 700 MC ATC (11,600) 650 600 (3,550) 550 What is the profit-maximizing output of this monopolistically competitive firm? Cost and Revenue ($) 500 450 (5,425) $400 (8, 400) 350 (7,340) 300 250 Units of Output 200 (5, 200) 150 100 50 MR What is the level of excess capacity for this monopolistically competitive firm? 0 0 1 2 3 4 5 6 7 8 Units of Output Units of Output (11,500) 9 10 11 12 13 14 15Required information Below is a graphical illustration of a typical firm operating in a monopolistically competitive industry. P5 PT 01 Multiple Choice 0203 Refer to the graph above to answer this question. What area graphically A loss of P4P5FJ. A loss of Q₁FJQ3- ATC A profit of P4P5FJ. a profit-maximizing firm's total profits or loss?Price and costs (dollars per unit) 4 3 2 1 0 10 20 MR 30 40 MC D 50 60 Quantity (units per day) ATC If this is a market for a monopolistically competitive firm selling hair products. Check all that apply. It will lose $20 per day if it stays in the market Its profit maximizing quantity is 30 units If it stays in the market, there will still be a dead weight loss It will charge a price of $4
- Question 4 $19 16 13 10 0 100 MC 160180 210 Quantity MR ATC D Assume all monopolistically competitive firms in an industry have demand and costs similar to the firm shown. What should we expect? O Firms will exit the business and the demand curve will shift to the left This firm will produce where MR-MC and no other firms will enter or exit Other firms will enter the industry and the demand curve will shift to the left$/q 16 14 12 10 OB642 8 0 1250 500 250 MC 750 ATC In the above figure, the monopolistic competitor's profit-maximizing total cost is D MR 50 100 150 200 250 g/t105 100 95 90+ 8282 85- 75 70- 382999282822" 65- 55 50 45 40 35 SH 5 10 15 MC ATC MR 60 65 Demand ++++ 90 95 100105110115120 Q What price will the monopolistically competitive firm charge in this market? O $70 $80 $75 $60
- Art-tile operates in a market where there are a number of competitors and anyone could set up at operation like Art-tile by making the same initial financial commitment as Art. QM is the market demand for tiles and is described by the following demand curve; Tiles Workers AVC ATC MC TC Revenue 1000 10 8 20 8 22000 9000 2000 19 8 13.6 7.2 50000 18000 3000 27 7 11.2 6.4 93000 27000 4000 34 7 9.8 5.6 148000 36000 5000 41 7 9 5.6 217000 45000 6000 48 6 8.4 5.6 300000 54000 7000 58 7 8.3 8 418000 63000 8000 70 7 8.5 9.6 572000 72000 P = 40 - .0001QM What is the long run equilibrium price for the type of tiles that Art-tile produces? Why? How many companies will produce this type of tile in long run equilibrium?6. Elasticity and total revenue I The following graph shows the daily demand curve for bippitybops in Vancouver. On the following graph, use the green rectangle (triangle symbols) to shade the area representing total revenue at various prices along the demand curve. Notice that when you click on the rectangle, the area is displayed. Note: You will not be scored on any changes made to this graph. PRICE (Dollars per bippitybop) 240 220 200 180 160 140 120 100 80 60 40 20 0 0 6 12 ** + 48 B 18 24 30 36 QUANTITY (Bippitybops per day) Demand 54 80 72 Total Revenue ?What are the possible revenue structure of a Bio-Brick (product) Company? Here are the example Revenue Structure of a ecommerce Revenue Structure · Low margin revenue streams from retail ecommerce sales and fulfillment · Advertising · Marketplace commission · Transaction fees
- COURSE: MICROECONOMICS 2 - MONOPOLY IN DURABLE GOODSA monopolistic firm has estimated its inverse demand function as P = 200 − 0.5 Q + 40*(1/UL) with a increasing marginal cost (MC) estimated to be 10 Q. (a) Estimate effect on firm's extraordinary profit if it changes useful life (UL) of its product from 8 years to 5 years. b) What will happen to selling price?Dollars 0 17. Refer to the above diagram. At the profit-maximizing output, total revenue will be: A) ABGE. B) OAHE. C) OBGE. D) OCFE. e C b a g hkn Output MC MR ATC AVCk Onli.... s 15 10) Below are drawn cost curves for a monopolistically competitive firm. What is the profit? 16 14 812 10 Dollars 0 MC MR 20 23 25 30 Number of haircuts ATC 9 D