Monopolistically competitive firm

Assignment Help Business Economics

Reference no: EM131379871

Answer the following questions for this monopolistically competitive firm and show your calculations when necessary.

What is the profit maximizing price, Output?

For this monopolistic competitive firm, is the firm earning a profit or loss? Explain.

What is the average total cost (ATC)?

What is the amount of average revenue (AR)?

What is the amount of total revenue, Total costs?

In comparison to a monopolist, is the elasticity of the demand curve more or less elastic than a monopolistic competitive firm? Explain your answer.

Can this monopolistic competitive firm earn a profit in the long-run? Explain your reasonings with detail so I can apply the material.

Reference no: EM131379871

Questions Cloud

Dimensional model with office-motivated candidates : Show that, in the one-dimensional model with office-motivated candidates (i.e., Down. sian model with win motivation and no uncertainty), announcing capx^m weakly dominates every other strategy for candidate A.

Decides to accommodate an adverse supply shock : “If a central bank decides to accommodate an adverse supply shock, it will intensify the inflationary effects.” Comment on this statement with the help of an AD-AS diagram.

Different range of demands for vehicle cleaning : Car Wash Intl. is considering four possible sites for its new operation in Houston area. Based on the information provided below, use break even analysis, plot break-even graph with breakeven points, and recommend best location for different range of..

How is pollution an example of negative externality : How is pollution an example of a negative externality? Explain how negative externalities and, more specifically, pollution often result from a lack of clear property rights.

Monopolistically competitive firm : What is the profit maximizing price, Output? For this monopolistic competitive firm, is the firm earning a profit or loss? Explain. What is the average total cost (ATC)? What is the amount of average revenue (AR)? What is the amount of total revenue,..

Firm purchased some equipment at very favorable price : A firm purchased some equipment at a very favorable price of $30,000. The equipment purchased in an annual net savings of $1000 per year during the 8year it was. At the end of 8 years, the equipment was sold for $40,000. Assuming interest did the equ..

The impact of medicare and medicaid costs : The impact of Medicare and Medicaid costs is expected to be even more important for the future debt of the U.S. than is social security. Where will most of these financial pressures come from? How might they be contained or coped with?

Flexible exchange rates and perfect capital mobility : With the help of an IS-LM diagram, explain the effects of restrictive fiscal policy on the level and composition of output assuming flexible exchange rates and perfect capital mobility.

Find the percentage increase in real GDP : GDP rises from $6 trillion in 1986, the base year, to $18 trillion in 1989. The GDP deflator in 1989 is 200. Find real GDP in 1989. Find the percentage increase in real GDP between 1986 and 1989. Percentage increase in real GDP between 1986 and 1989.

User Account

All Pages