Which of the following statements is true for firms in monopolistic competition? O Firms face barriers to enter the market. Firms sell differentiated products. The long-run economic profit is greater than zero. Firms are price-takers and thus do not have market power.
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- PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 + 0 MO 50 ATC MR Demand 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) ++ Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, the shop is earning shops in the industry than in long-run equilibrium. Profit or Loss profit, which means there areA monopolistically competitive firm has a total cost curve represented by TC = 250+ 3Q + Q² and a marginal cost represented by MC = 3 + 2Q. The firm faces the demand curve P = 99 - 2Q. What do we expect to happen in the long run? O Firms will exit the industry, but if this firm remains its profits will increase. O The firm will earn an economic profit in the long run. O Additional firms will enter the industry and this firm's profit will decrease. O This firm will sell its product at marginal cost. MacBook A esc 800 F1 F2 F3 F4 2$ 4 W R T Y ock G %24 2Which of the following statements is true for firms in monopolistic competition? Firms face barriers to enter the market. Firms sell differentiated products. The long-run economic profit is greater than zero. Firms are price-takers and thus do not have market power. O
- Which of the following is true for a monopolistically competitive industry? * There are many firms, each with a small market share. The firms in the industry produce a standardized product. Firms are price-takers. There are considerable barriers to entry. O There is a small number of independent firms.A perfectly competitive firm is onsidered to be more generous in terms of price and quantity of output in comparison to firm belonged to monopoly and monopolistic markets. C. If firms incurring loss in this market begin to exit the market, what will happen to the market equilibrium? Demonstrate your answer using a simplified graph. d. The firm wishes to supply output more than the quantity determined under the equilibrium condition, is it worth to pursue?Which of the following is a characteristic of monopolistic competition? O few sellers O homogeneous product zero long-run profits O barriers to entry OO
- The profit-maximizing firm illustrated in Figure operates in a monopolistically competitive industry. Which of the following best explains what happens in the long run? Price 4 O MC ATC AVC D MR QuantityThe graph below shows the demand curve for a perfectly competitive firm. Suppose that firms in this industry discover a way to differentiate their products. Using the line drawing tool, show how the firm's demand curve would be likely to change. Label the new demand curve 'd,'. Carefully follow the instructions above, and only draw the required objects. Since the demand curve is downward sloping, the monopolistically competitive firm will set a price OA. that is less than marginal cost. B. that is unrelated to marginal cost. OC. that is equal to marginal cost. D. that is greater than marginal cost. Price 10- Q Q Output 10In an industry comprised of three companies, which are small-scale manufacturers or an easily replicable product unprotected by brand recognition or patents, the most representative model of company behavior is: O oligoply. O perfect competition. monopolistic competition.
- Price, cost, revenue $100 $90 $80 $70 $60 $50 0 000 MR MC D /AC 0 7000 14000 21000 12000 Dresses per year Refer to the graph shown of a monopolistically competitive firm. In the long run: marginal cost will fall for firms that remain as other firms exit the industry. demand will fall for firms that remain as other firms enter the industry. Odemand will rise for firms that remain as other firms exit the industry. O average total cost will rise for firms that remain as other firms enter the industry.Which of the following will always be true for both single-price monopoly and monopolistic competition in the short run? Price equals marginal cost. Price is greater than marginal revenue. Short run profits are positive. O Price equals marginal revenue.The monopolistically competitive firm represented in the graph is in: $ $11.40 $10.20 $7.50 0 520 630 MC ATC MR Firm's Demand Quantity Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a long-run equilibrium since it is earning zero profit. b short-run equilibrium since it is earning zero profit. C short-run equilibrium, but not long-run equilibrium since it is earning positive economic profit. d long-run equilibrium, but not short-run equilibrium since it is earning positive economic profit. Your answer