is price equal to minimum LRAC in a monopolistically competitive industry in long-run equilibrium? why or...
is price equal to minimum LRAC in a monopolistically competitive industry in long-run equilibrium? why or why not?
Homework Answers
- In long run equilibrium, the monopolistically competitive firms set their price equal to the average cost curves and marginal cost curves.
- They adjust their price to match it with the LRAC curve at its minimum point in order to achieve equilibrium.
- The firm's adjust their price and quantities to the market equilibrium in order to achieve optimum profits in long run.
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is price equal to minimum LRAC in a monopolistically competitive
industry in long-run equilibrium? why or...
12. For a monopolistically competitive firm, the long-run equilibrium price a. is equal to marginal...
12. For a monopolistically competitive firm, the long-run equilibrium price a. is equal to marginal cost b. is above marginal cost c. is below marginal cost d. may be above, below, or equal to marginal cost, depending on the location of the marginal cost curve in relation to the average cost curve
True/False. Explain: Since the long-run equilibrium profit in a monopolistically competitive industry is zero, the industry...
True/False. Explain: Since the long-run equilibrium profit in a monopolistically competitive industry is zero, the industry is efficient.
which of the following is not characteristic of a monopolistically competitive firm in a long-run equilibrium...
which of the following is not characteristic of a monopolistically competitive firm in a long-run equilibrium a price is equal to marginal cost b marginal revenue is equal to marginal cost c the firm has excess capacity d price is equal to average revenue
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...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
A monopolistically competitive sneaker firm is currently in long run equilibrium. Graph the firm in long...
A monopolistically competitive sneaker firm is currently in long run equilibrium. Graph the firm in long run equilibrium. Be sure to label all of the curves and the profit-maximizing price and quantity. The price of rubber decreases. Rubber is a major component in the production of sneakers. Draw a new graph that shows the change in the profit maximizing price and quantity of sneakers. Be sure to shade the area of loss or profit.
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of...
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of a donut Question 20 options: A) equals long-run average cost. B) is greater than marginal cost. C) is greater than long-run average cost. D) is greater than short-run average cost. The industry that produces zangs is in long-run equilibrium. Then the demand for zangs increases permanently. As a result, firms in the industry will ________. Some firms will ________ the industry, and the industry...
In the long run, the price for a perfectly competitive firm O A. will allow for...
In the long run, the price for a perfectly competitive firm O A. will allow for positive economic profits. O B. will be determined by the firm's supply and demand curves. O c. will equal LRMC where LRMC is at a minimum. OD. will equal the minimum LRAC.
1. A monopolistically competitive sneaker firm is currently in long run equilibrium. a. Graph the firm...
1. A monopolistically competitive sneaker firm is currently in long run equilibrium. a. Graph the firm in long run equilibrium. Be sure to label all of the curves and the profit-maximizing price and quantity. b. The price of rubber decreases. Rubber is a major component in the production of sneakers. Draw a new graph that shows the change in the profit maximizing price and quantity of sneakers. Be sure to shade the area of loss or profit. .
1) The above figure definitely shows a) a long-run equilibrium for a monopolistically competitive firm. b)...
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
In comparing the long-run equilibrium of a monopolistically competitive firm and a perfectly competitive firm, which of the following is incorrect? Select one: a. they both produce at the minimum point of the average cost curve ob. the both produce at point where price equals average costs c. they both produce where MR = MC od. the both make zero economic profits e. none of the above. o
In the long run, the price for a perfectly competitive firm O A. will allow for positive economic profits. O B. will be determined by the firm's supply and demand curves. O c. will equal LRMC where LRMC is at a minimum. OD. will equal the minimum LRAC.
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
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