Graph and explain in detail the short-run and long-run equilibria under a monopolistic competition situation.

Expert Solution

Rahul Sunny answered 1 year ago

What makes a business successful in monopolistic competition? Provide a short-run profit graph and long-run profit...

What makes a business successful in monopolistic competition? Provide a short-run profit graph and long-run profit graph.

1. Under monopolistic competition, which of the following is true: A) In the short run, the...

1. Under monopolistic competition, which of the following is true: A) In the short run, the firm behaves as a firm in perfect competition. B) In the long run equilibrium, firms will make positive profits. C) If there are economic profits, in the long run new firms enter leading to a decrease in demand for the existing firm. D) All of the above are true. E) None of the above are true 2. In the market equilibrium, a single-price monopolist...

Which of the following is true under monopolistic competition in the short run? Select one: A....

Which of the following is true under monopolistic competition in the short run? Select one: A. P > MC. B. Profits are always zero. C. P = MR. D. All of the choices are true in monopolistic competition.

Explain the differences between perfect competition and monopolistic competition. b. Explain the long run equilibrium for...

Explain the differences between perfect competition and monopolistic competition. b. Explain the long run equilibrium for a monopolistically competitive firm that is earning economic profits in the short run.( use diagram to support answer)

Is it true in the long-run, a firm under monopolistic competition has market power but earns...

Is it true in the long-run, a firm under monopolistic competition has market power but earns no profit? Explain.

A. Compare and contrast profit maximizing conditions under monopoly and monopolistic competition in the short-run. B....

A. Compare and contrast profit maximizing conditions under monopoly and monopolistic competition in the short-run. B. Compare and contrast profit maximizing conditions under perfect competition and monopolistic competition in the long-run.

Do you agree that companies under monopolistic competition can have a profit in the long run?If...

Do you agree that companies under monopolistic competition can have a profit in the long run?If yes, why? if no, why not?

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

Monopolistic competition is more like _ in the short run and more like _ in the...

Monopolistic competition is more like _____ in the short run and more like _____ in the long run in terms of how much economic profit is earned. monopoly, oligopoly monopoly, perfect competition oligopoly, monopoly oligopoly, perfect competition perfect competition, monopoly perfect competition, oligopoly

Answer the following questions comparing monopolistic competition to perfect competition. a. In the long run, how...

Answer the following questions comparing monopolistic competition to perfect competition. a. In the long run, how does the profit earned by a firm operating in a monopolistically competitive market compare to the profit the same firm would earn if it were instead operating in a perfectly competitive market? Please explain. b. In the long run, how does the average cost of production for a firm operating in a monopolistically competitive market compare to the average cost of production for the...

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