A) Explain & depict the LongRun equilibrium for a monopolistically competitive firm, and draw and upload...

A) Explain & depict the LongRun equilibrium for a monopolistically competitive firm, and draw and upload graphs to depict the long-run.

Watch this video

https://www.youtube.com/watch?v=RUVsEovktGU&feature=youtu.be

please write your answer very clear so I can read it.

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

No Long-Run Economic Profits 1717 unread replies.1717 replies. a) Explain & depict the LongRun equilibrium for...

No Long-Run Economic Profits 1717 unread replies.1717 replies. a) Explain & depict the LongRun equilibrium for a monopolistically competitive firm. *Draw and upload graphs to depict the long-run

Draw the graphs (2) of Chamberlinian and Dixit-Stiglitz monopolistically competitive equilibrium. Explain what the Chamberlinian and...

Draw the graphs (2) of Chamberlinian and Dixit-Stiglitz monopolistically competitive equilibrium. Explain what the Chamberlinian and Dixit-Stiglitz models predict about the optimality of product variety. What accounts for the different conclusions?

1. Draw a graph of a monopolistically competitive firm that is currently earning a short run...

1. Draw a graph of a monopolistically competitive firm that is currently earning a short run profit. Be sure to include marginal revenue, demand, marginal cost and average total cost curves. What will happen to this firm as it enters the long run? 1b. What would you expect to happen to these initial firms as more and more pubs begin branching out into other markets? Multiple Choice/True False Questions: 1. The fact that pubs are now competing with firms like...

In long-run equilibrium, a monopolistically competitive firm will produce: A) along the downward-sloping portion of its...

In long-run equilibrium, a monopolistically competitive firm will produce: A) along the downward-sloping portion of its ATC curve B) at full capacity C) at its minimum average cost D) at the minimum point of its marginal cost curve E) along the upward-sloping portion of its ATC curve

Illustrate a typical monopolistically competitive firm in short- run equilibrium with economic profit. How will demand,...

Illustrate a typical monopolistically competitive firm in short- run equilibrium with economic profit. How will demand, average cost and profit change in the long run? Explain. Will the firm achieve minimum efficient scale? Explain. What is the source of the firm’s market power?

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...

Suppose the industry of all farms planting beans is now in a perfectly competitive longrun equilibrium,...

Suppose the industry of all farms planting beans is now in a perfectly competitive longrun equilibrium, and all farms have zero fixed cost for planting. Recent regulation in the market of fertilizers raises the price of bean fertilizer and therefore the marginal and average costs of all the farms in this industry. Note that marginal and average cost curves both experience a parallel shift up by the same amount. Please use a graphic tool to analyze the following changes to...

you are hired as the consultant to a monopolistically competitive firm

you are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If the firm is profit maximizing, is the firm in a long-run equilibrium? If not, what will happen to restore long-run equilibrium? a. P < MC, P > ATC I would think that the firm can’t possible be maximizing profit. The firm should raise price, so that...

1. A monopolistically competitive firm differs from a firm in perfect competition because a monopolistically competitve...

1. A monopolistically competitive firm differs from a firm in perfect competition because a monopolistically competitve firm is characterized by: A. zero economic profits. B. marginal revenue equals marginal cost. C. price is greater than marginal cost in equilibrium. D. a horizontal demand curve. 2. A monopolistically competitive firm is different from a monopoly because a monopolistically competitive firm is characterized by: A. zero economic profits. B. marginal revenue equals marginal cost. C. price = min ATC D. no deadweight...

. Draw a diagram showing a monopolistically competitive firm earning positive economic profits. What would need...

. Draw a diagram showing a monopolistically competitive firm earning positive economic profits. What would need to happen to bring this market back to long run equilibrium? Illustrate this transition to long run equilibrium from the perspective of the individual firm in your diagram. Use a graph to show the price and quantity a monopolist would choose facing a downward sloping demand curve. Show the monopolist’s total profits. Using the same graph, show what would happen if the monopolist experienced...

Subjects