Question

Show the long run graphs for each of the following markets: a. Perfectly competitive b. Monopolistically...

Show the long run graphs for each of the following markets:

a. Perfectly competitive

b. Monopolistically competitive

c. Pure Monopoly

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) In the long run, Under the perfect market condition and monopolistically competitive market condition, there will be no profit. The firm will only be breaking even.   

a) Perfect market condition.

The firm is producing 30 quantity at price of $100 and breaking even in the long run.

b) Monopolistically competitive market

The firm is producing quantity Q at price P and the price is equal to the ATC. The firm is only breakign even.

c) A pure monopoly will earn a profit in the long run too.

The firm is producing quantity Q at price P and making a profit in the long run.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a perfectly competitive...
Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a perfectly competitive market in that in both markets, firms produce where price equals marginal cost. produce at the minimum point of their average total cost curves. break even. produce where price equals marginal revenue.
Compare graphically the welfare implications of the long run equilibrium of a monopolistically competitive industry, monopoly...
Compare graphically the welfare implications of the long run equilibrium of a monopolistically competitive industry, monopoly and a perfectly competitive industry.
25. __________ Which of the following is true of long‐run equilibrium price in a monopolistically competitive...
25. __________ Which of the following is true of long‐run equilibrium price in a monopolistically competitive market? A) It is equal to average total cost. B) It is less than average total cost. C) It is higher than average total cost. D) It is lower than marginal cost. 27. __________ Total social surplus is maximized in a(n) ________. A) monopolistically competitive market B) perfectly competitive market C) oligopoly D) monopoly 28. __________ A firm is said to have market power...
Why are economic profits driven to zero in perfectly competitive and monopolistically competitive markets?
Why are economic profits driven to zero in perfectly competitive and monopolistically competitive markets?
Which firms typically have zero economic profits in the long run? options: A) monopolist, perfectly competitive...
Which firms typically have zero economic profits in the long run? options: A) monopolist, perfectly competitive B) perfectly competitive, monopolistically competitive C) oligopolist, monopolistically competitive D) perfectly competitive, oligopolist
16) Compared to a perfectly competitive firm, the demand curve facing a monopolistically competitive firm is...
16) Compared to a perfectly competitive firm, the demand curve facing a monopolistically competitive firm is a) more elastic because there are many close substitutes for the product of a monopolistically competitive firm. b) less elastic because monopolistically competitive firms produce similar, but not identical, products. c) just as elastic because there are many sellers in both markets. d) more elastic because in the long run, the demand curve is tangent to the firm's average total cost curve.
******Graphs with clear explanation ********* a) Construct two graphs which show:                        1. a perfectly competitive...
******Graphs with clear explanation ********* a) Construct two graphs which show:                        1. a perfectly competitive firm’s cost structure and profit maximising level of production.                       2. a market which generates the price faced by the perfectly competitive firm. b) Represent on your graphs the effects of an increase in consumer incomes, and assume that the product in the perfectly competitive market is a normal good. Show on your graph the perfectly competitive firm’s profit levels.
In theory, in the long run the price-cost margin is positive for monopolistically-competitive firms but equal...
In theory, in the long run the price-cost margin is positive for monopolistically-competitive firms but equal to zero for (perfectly) competitive firms. Question 1 options: True False
For monopolistically competitive firms is it always likely in the long-run to have zero-economic profit? Monopolistically...
For monopolistically competitive firms is it always likely in the long-run to have zero-economic profit? Monopolistically competitive firms in the long-run
What is the long run equilibrium for a perfectly competitive firm, monpolistically competitive firm, oligopoly and...
What is the long run equilibrium for a perfectly competitive firm, monpolistically competitive firm, oligopoly and monopoly? Use notation.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT