In the (short, long) run, monopolistically competitive firms will make (large,zero,or small) economics profits- that is,...
In the (short, long) run, monopolistically competitive firms will make (large,zero,or small) economics profits- that is, they will make a (normal, disappointing), rate of return.
Pick the answers out of the choices in the parentheses.
Homework Answers
In the short run the monopolistic firms earn positive economic profits but in the long run they earn zero economic profits.
Answer-long,zero,normal
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In the (short, long) run, monopolistically competitive firms
will make (large,zero,or small) economics profits- that is,...
Suppose that firms in a monopolistically competitive industry are making positive profits in the short run....
Suppose that firms in a monopolistically competitive industry are making positive profits in the short run. Select the correct answers below to describe what will happen in this industry in the long run. Since profits are greater than zero, firms will enter/exit As this occurs, demand for each firm will, increase/decrease/stay the same This will continue until, profits increase/decrease/equal zero At this point, P=ATC/P=MR/P=MC
In theory, in the long run, monopolistically competitive firms earns zero profits. However, in reality there...
In theory, in the long run, monopolistically competitive firms earns zero profits. However, in reality there are some ways by which a firm can avoid losing profits. Which of the following is one such way? A) gradually increase the mark up on the goods produced B) lower the price of its products to expand its market share C) identify new markets and develop products precisely for those markets D) find a market niche and keep it as narrow as possible...
QUESTION 6 In the short run, a monopolistically competitive firm. O makes profits just as it...
QUESTION 6 In the short run, a monopolistically competitive firm. O makes profits just as it does in the long run because of barriers to entry O will earn zero economic because of free entry and exit. O produces where MR-MC O produces where PEMC QUESTION 7 In the long run, a monopolistically competitive firm: O makes profits just as it does in the short run because of barriers to entry will earn zero economic because of free entry and...
True and False and Justify Because a monopolistically competitive firm has zero profits in the long...
True and False and Justify Because a monopolistically competitive firm has zero profits in the long run, it will have no market power and the Lerner index is zero. Advertising will make the demand function more elastic for a monopolistically competitive firm.
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be su...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
7. Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium A. price...
7. Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium A. price is greater than marginal cost. B. marginal cost is greater than average total cost C. price is less than marginal cost. D. price is equal to marginal cost. 8. When MR = MC and P = ATC for a monopolistically competitive firm, the firm is in A. short-run disequilibrium and making losses. B. neither short‐run nor long‐run equilibrium C. long-run equilibrium and making zero...
Your textbook states that, in the long run, representative firms in monopolistically competitive markets will just...
Your textbook states that, in the long run, representative firms in monopolistically competitive markets will just break even --- that is, earn zero economic profits. Yet some firms in highly competitive markets manage to continue to earn economic profits indefinitely. For example, perfumes, cosmetics, and hair care firm L’Oreal, in business since 1907, remains highly profitable today, despite competing in fiercely competitive product categories. How has L’Oreal managed to stay profitable for so long (clue: they have a research and...
Your textbook states that, in the long run, representative firms in monopolistically competitive markets will just...
Your textbook states that, in the long run, representative firms in monopolistically competitive markets will just break even --- that is, earn zero economic profits. Yet some firms in highly competitive markets manage to continue to earn economic profits indefinitely. For example, perfumes, cosmetics, and hair care firm L’Oreal, in business since 1907, remains highly profitable today, despite competing in fiercely competitive product categories. How has L’Oreal managed to stay profitable for so long (clue: they have a research and...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic profits. negative economic profits. Positive, zero, or negative economic profits. QUESTION 8 Which of the following statements best describes firms under monopolistic competition? Profits will be positive in the long run. Price always equals average variable cost. In the long run, positive economic profit will be eliminated. Marginal revenue equals minimum average total cost in the short run. QUESTION 9 Which of the following...
Explain why, in a competitive market, firms only generate normal profits in the long run, whereas...
Explain why, in a competitive market, firms only generate normal profits in the long run, whereas they can generate super normal profits in the short run?
QUESTION 6 In the short run, a monopolistically competitive firm. O makes profits just as it does in the long run because of barriers to entry O will earn zero economic because of free entry and exit. O produces where MR-MC O produces where PEMC QUESTION 7 In the long run, a monopolistically competitive firm: O makes profits just as it does in the short run because of barriers to entry will earn zero economic because of free entry and...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
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