In the long run, the representative firm in monopolistic competition tends to have: Select one: a. a perfectly elastic demand curve. b. economic profits. c. maximized consumer utility. d. limited product differentiation. e. excess capacity.
Q: Use the following equations for a closed (no XNET) economy to the next four items. C=$300 billion…
A: The aggregate demand refers to the total demand for all the goods and services within an economy.…
Q: abby is a single mom with a weekly budget of $100. She can spend her weekly income on food and…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: Why did ancient Rome advocate natural economy and oppose commodity economy? Explain in detail
A: Economy: An economy is a system of interconnected activities in production and consumption that…
Q: The table shows a nation's real GDP, tax revenues, and outlays. Calculate the budget balance when…
A: A balanced budget is one in which revenues and expenses balance out, leaving no budgetary gaps. The…
Q: The WTO has been able to solve all global trade problems. A) True B) False
A: WTO was established in 1995 during the GATT (General Agreement on Trade and Tariffs) discussions in…
Q: Suppose the demand for apple is inelastic and the supply of apple is elastic, and the demand for…
A: incidence of tax is totally dependent on the elasticities of demand and supply curve of the consumer…
Q: What will happen in the market for corn if a new crop rotation technique is discovered that allows…
A: Demand and Supply of any product depend not only on the prices but also on a host of other factors.…
Q: assy invested $1000 at 12% simple interest, calculate its value after 5 years
A: Introduction: The future value can be calculated by adding all the interest amounts of 5 years with…
Q: QUESTION 3 Greenhouse gases are O uniformly mixed pollutants O stock pollutants O gasses the…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: 2. The production is given by Y= 2L+K. The firm currently produces 200 units a. Graph an isoquant…
A: b) MPL =dY/dL = 2 MPK = dY/dK = 1 what is TRS could you elaborate MRTS = MPL/MPK = 2
Q: Find the annual worth of the shown cash-flow diagram, as a function of X, when i = 20% per year. TT…
A: The annual worth of a property is the amount for which a property is reasonably expected to be let…
Q: The supply curve of a human resource will be more elastic the a. easier it is to obtain the skill…
A: The idea of supply is used in economics to estimate the volume of a good or service produced by…
Q: Suppose the state of Georgia government believe that golf should be available to the "common man,"…
A: Price celling is the one of the tool that government use to price control in the market. price…
Q: 2006 Price good A BDT 30 good B BDT 100 Quantity 900 192 2007 Price BDT 31 BDT 102 2008 Price 1,000…
A: Nominal GDP measures the market value of goods and services using current prices whereas Real GDP…
Q: According to Keynes' Law... The total demand for products determine the level of gross domestic…
A: Keynesian economics refers to the macroeconomic theories which involve total spending in the economy…
Q: Suppose the government of the island has decided to make tomatoes more affordable to consumers by…
A: The concept is based on the interaction of the supply and demand curve in which supply is an…
Q: Down payment Annual payments Years Discount rate plan A 1.297.19 5.342.38 20 12% What is the present…
A: Here we are given the annuity, we will fid the present value of annuity using the present value of…
Q: Question 3 social cost At a given market price suppose the elasticity of demand is -2.2 and the…
A: Elasticity measures the responsiveness of quantity to changes in the price.
Q: Aggregate Demand 100 200 300 400 500 REAL GOP (Elions of dollars) 600 700 800 P lowing are reasons…
A: Above concept is based on downward sloping of demand curve. When the good of a price increases the…
Q: Assume the market thinks there is a 40% probability of devaluation of 5% within the next month. How…
A: Robert Mundell and Fleming wrote the theorem when there was a fixed exchange rate system. The model…
Q: Air Canada announces a 15% off sale on its flights, so fans can watch Toronto Raptors play against…
A: In economics, a demand curve is a graph portraying the relationship between the price of a certain…
Q: The WTO has managed to solve all the problems of world trade. a) true b) false
A: Introduction WTO is an intergovernment organization that regulate and facilitate international…
Q: Answer True, False or Uncertain. Brieáy explain your answer. In an international economy of…
A: Perfectly substitutable currencies show that the demanders are not particular about whatever…
Q: 1 bi. If the demand law is given by x=20/(p+1), find Elasticity of demand with respect to price at…
A: A good's price elasticity of demand is a measure of how sensitive the quantity demanded is to its…
Q: how does opportunity cost affect the decision-making process for personal decisions? Please give a…
A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…
Q: d. Consider the following scenarios: Variable Cost/Book Access Price Demand Scenario 1 $6 $46 2,500…
A: Profit refers to the difference between the total revenue and total costs . Total Revenue = Price *…
Q: Suppose the government of the island has decided to make tomatoes more affordable to consumers by…
A: Disclaimer: - Since you asked multipart question, we are solving 1st 3 parts as per guidelines. If…
Q: From a spending model perspective, explain the causes and dynamics of a recession
A: ANSWER: Recession:- Downfall of the economy because of slowing down of economic activities in a…
Q: production of $1.00 worth of food requires $0.30 worth of food a $0.10 worth of housing, and the…
A: We form consumption matrix in a way that both sides row and column food and housing is mentioned So…
Q: Which of the following would cause the aggregate supply curve to increase... O Throughout the…
A: Aggregate supply refers to the total amount of goods and services supplied in the economy at given…
Q: Which of the following is true about price gouging laws? Selected answer will be automatically…
A: Price gouging is when a seller raises the price of their goods or services to an amount that is…
Q: Which of the following is true for the European Central Bank (ECB)? the members of its executive…
A: The European Central Bank (ECB) refers to a central bank of the European Union nations that have…
Q: A firm’s marginal revenue function is ?? = −9? + 126. Use indefinite integrals to solve for the…
A: The additional total revenue produced by increasing product sales by 1 unit is known as marginal…
Q: There are 4 main market structures in the economy. Select an example and explain each structure.…
A: A market is defined as a structure which allows the buyers and sellers to interact with each other…
Q: Think the two-period model for a depletable resource such as coal. Period 1 is current time and…
A: given that: for the period1: inverse demand function P1 = 27-q1 marginal…
Q: Joe has just moved to a small town with only one golf course, the Northlands Golf Club. His inverse…
A: Given that, Demand function, p = 120-2 Marginal Cost, MC = 40 To calculate: Profit maximizings.
Q: The International Fisher Effect. Define the international Fisher effect. To what extent do empirical…
A: International fisher effect Based on the International Fisher Effect (IFE), a theory of economics,…
Q: What is the logarithmic transform of the utility function U=xα1xβ2xγ3U=x1αx2βx3γ given the budget…
A: Given, Logarithmic transform of the utility function : U=xα1xβ2xγ3U=x1αx2βx3γBudget Constraint :…
Q: ‘Equity can always be increased by raising marginal income tax rates.’ Discuss.
A: Taxes refers to compulsory charge paid by the individuals to the government. The taxes are paid to…
Q: Calculate the elasticity of demand for the demand curve p = 100 - 2q at each of the following price…
A: To determine changes in the quantity required of a good as a result of price changes, the price…
Q: Problem 2: Average total cost, from “Principles of Economics” by N. Gregory Mankiw You are the chief…
A: Average total cost alludes to the cost per unit of output. It includes both fixed and variable…
Q: Question 2: Y Use the above graph to show the following how L* would change A. The price of the…
A: Labor is defined as one of the most important factors of production as it uses all the other…
Q: 4. Find out all the Nash equilibria of the game. (Both Pure & Mixed) R1 R2 R3 0,0 0,0 1,1 0,0 0,0…
A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…
Q: Suppose you had ₱100 in a savings account and the interest rate is 20% per year and you never…
A: Here, given information is, Present value (P): ₱100 Interest rate (r): 20% per year Time period…
Q: The monetarists/new classical economists argue that, "given that the economy is inherently stable,
A: New Classical/ Monetarists do not believe in the government intervention in correcting the economic…
Q: The Australian airline industry is largely dominated by Qantas, Virgin Blue and Jetstar with a…
A: Market share: It refers to a benchmark of what works and what doesn't, as well as suggestions for…
Q: make at least five recommendations to improve operations and banking services for post-Covid-19 The…
A: 1.The first recommendation would be selective advancing of loans thus credit rationing should be…
Q: Assume Australia, a large country, exports wine and imports cars. Recently climate change has…
A: The economic exchange of goods and services between nations is known as international trade.…
Q: What would happens to the quantity demanded if the price of bottled water rose from $1.00 to $1.50?…
A: The point of equilibrium lies at the point where the supply curve intersects the demand curve or the…
Q: define demand and supply, give a couple of examlples tied to todays current events (a couple…
A: The law of supply and demand joins two economic standards depicting how changes in the cost of an…
In the long run, the representative firm in
Select one:
a. a perfectly
b. economic profits.
c. maximized consumer utility.
d. limited product differentiation.
e. excess capacity.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- In the long run, the economic profits in a monopolistically competitive industry tend to go towards zero. The main reason for this is: a differentiated products. b diseconomies of scale. c increased regulatory pressure on profitable firms. d free entry.Which of the following is always associated with monopolistic competition? a. highly inelastic demand curves b. low barriers to entry c. demand curve that lies below the marginal revenue curve d. indistinguishable products e. economic profits in the long runIn the long run the demand curve that a monopolistic competitor faces for its product will likely: A. Intersect the ATC at its minimum point.B. Intersect the ATC curve somewhere past the minimum point.C. Become tangent to the ATC curve somewhere left of its minimum point.D. None of the above.
- A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning negative economic profits. Which of the following must be true? Select one: a. ATC> P> MR = MC. b. ATC= P> MR = MC. c. ATC> P = MR = MC. d. ATC> P> MR > MC.Monopolistically competitive firms use product differentiation to a.limit the number of firms in the industry. b.ensure long-run profits. c.achieve market power. d.block other firms from entering the industry.Because monopolistically competitive firms produce differentiated products, they will: Select one: a. face a perfectly elastic demand curve. b. face a downward-sloping demand curve. c. be unable to create any degree of product loyalty. d. never need advertising.
- In the short-run, a monopolistically competitive firm: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b will produce at the point where marginal revenue is greater than marginal cost, in order to maximize profits. Your answer C can earn only a normal profit. d will produce at the point at which price equals minimum ATC, to maximize profits. will shut down temporarily if price is less than AVC.Fresh Taste, Inc. produces organic breakfast cereals. The market for breakfast cereals is monopolistically competitive. The figure above shows the demand curve that Fresh Taste faces (D), the company's marginal revenue curve (MR), its marginal cost curve (MC), and its average total cost curve (ATC). Fresh Taste's excess capacity is a. 4,000 boxes per day. b. zero. c. 12,000 boxes per day. d. 8,000 boxes per day.Under perfect competition and monopolistic competition, profits are zero in long-run equilibrium.true or false
- Q8. The similarity between Monopoly and Monopolistic competition is vow a) Free entry and exit of firms marginal revenue b) Quality of product is same c) Price charged exceeds d) Demand curves are perfectly elastic. Q9. Which of the following conditions is acceptable as the last stage of production for a P.C. firm? a) Size of loss equals to total fixed cost b) Size of loss equals to total variable cost c) Size of loss equals to total cost d) Firm earns zero economic profit Q10 The monopolistic competitive firm produces product a) That is slightly differentiated b) That is significantly different from each other c) That is considerably different from each other d) That is of lower quality than the P.C. firmMacmillan Learning Increasing Returns to Scale and Monopolistic Competition Starting from the long-run trade equilibrium in the monopolistic competition model, as illustrated in the accompanying figure, consider what happens when industry demand D increases. For instance, suppose that this is the market for cars, and lower gasoline prices generate higher demand D. a. Show the resulting shift in the D/NT, d, and mr curves. Assume the price increases to $13. Place point A on the new short-run equilibrium. Price 09876 20 19 18 17 16 15 11 10 9 8 7 6 5 4 3 2 1 0 mr D/NT d A • AC MC 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 QuantityThe graph below summarizes the demand and costs for a firm that operates in a monopolistically competitive market.Instruction: Use the nearest whole numbers on the graph when calculating numerical responses below.a. What is the firm’s optimal output? unitsb. What is the firm’s optimal price?$ c. What are the firm’s maximum profits?$ d. What adjustments should the manager be anticipating?multiple choice Demand will decrease over time as new firms enter the market. Demand will increase over time as firms exit the market. Demand will remain unchanged over time.