odigopoly likely to make a profit in the long run? Briefly explain why. (3 marks)

odigopoly likely to make a profit in the long run? Briefly explain why.

Expert Solution

Rahul Sunny answered 7 months ago

A monopolistically competitive firm in long-run equilibrium: will make negative profit. will make zero profit. will...

A monopolistically competitive firm in long-run equilibrium: will make negative profit. will make zero profit. will make positive profit. Any of the above are possible. None of the above are possible. The Cournot model of symmetric duopoly suggests that the market equilibrium position is such that: one firm is larger than the other in the final equilibrium and the largest firm produces the largest quantity of output. economic profits are zero for both firms. total industry output is the same...

1.Why can't perfect competitora make an above-normal profit in the long run? 2. What is the...

1.Why can't perfect competitora make an above-normal profit in the long run? 2. What is the significance that profit maximization for the perfect competitior occurs where P=MC=MR=ATV? (please give me a short paragraph for each question)

Why is there no economic profit for perfectly competitive firms in the long run? Why is...

Why is there no economic profit for perfectly competitive firms in the long run? Why is there no economic loss? Answer this question by using an example of a market or industry where perfectly competitive or close to perfectly competitive firms operate (or run their businesses) in close to 'no economic profit or no economic loss' situation.

Explain why a monopolistically competitive firm earns zero economic profit in the long run and show...

Explain why a monopolistically competitive firm earns zero economic profit in the long run and show graphically how they charge a higher price then perfectly competitive firms and are not cost efficient.

why do competitive firms earn zero economic profit in the long run

ECO 252 - Macroeconomics 3.) Indicate if the long run growth of real GDP is likely...

ECO 252 - Macroeconomics 3.) Indicate if the long run growth of real GDP is likely to increase or decrease. Ceteris Paribus means all else constant. a. Political unrest lead the government to impose a martial law and to restrict movement of people and goods, Ceteris Paribus. b. The World Bank decreases the amount of loans available to subsistence farmers, Ceteris Paribus. c. Quotas on imported goods are imposed, Ceteris Paribus. d. The government offers tax credits to firms that...

13. Firms in a perfectly competitive firm make 0 economic profit in the long run. True...

13. Firms in a perfectly competitive firm make 0 economic profit in the long run. True or False 14. A firm in a perfectly competitive market, finds that it's MR = MC occurs at Q = 100, at which point the market Price is $8. The firm's ATC = AFC+AVC = $6; Is the firm making a profit or loss at this point of production? a.Loss of $200 b.profit of $600 C.loss of $600 D. profit of $200 15. A...

Explain the long run economic profit earned by each of the four market models. Explain how...

Explain the long run economic profit earned by each of the four market models. Explain how the concept of economic profit might help explain the rationale for the government’s granting of monopolies to those firms that protect their product with a patent. Please use your own words do not copy and paste a texbook solution.

Monopolistic competitors can make a _ in the short-run, but in the long run, __ will...

Monopolistic competitors can make a _____________ in the short-run, but in the long run, ______________ will drive these firms toward _______________________. A) profit or loss; entry and exit; a zero-profit outcome B) loss; exit; losses on their earnings C) profit or loss; exit; economic profits D) profit; entry; a price that lies at the very bottom of the AC curve

Why Pure Monopoly can sustain positive economic profit in the long-run and why Pure Monopoly fails...

Why Pure Monopoly can sustain positive economic profit in the long-run and why Pure Monopoly fails to generate either Allocative Efficiency or Economic Efficiency.

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