A student makes the following comment: I can understand why a perfectly competitive firm won't earn a
Question:
I can understand why a perfectly competitive firm won't earn a profit in the long run because it charges a price equal to marginal cost. But a monopolistically competitive firm can charge a price greater than marginal cost, so why can't it continue to earn a profit in the long run?
How would you answer this question?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 88% (9 reviews)
There is no contradiction between producing where p...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Micro Economics questions
-
In perfect competition, firms set price equal to marginal cost. Why cant firms do this when there are internal economies of scale?
-
In the long run, a monopolistically competitive firm earns zero economic profit, which is exactly what would occur if the industry were perfectly competitive. Assuming that the cost curves for each...
-
In a perfectly competitive market, price equals marginal cost, but this condition is not satisfied for the firm with the revenue and cost conditions depicted in Problem 25-2. In the long run, what...
-
Find the point in the first quadrant on the curve y = x + x 1 closest to the origin.
-
What is done to record properly a transaction involving the issuance of a non-interest-bearing long-term note in exchange for property?
-
Suppose a cameras exposure is correct when the lens has a focal length of 8.0 mm. Will the picture be overexposed, underexposed, or still correct if the focal length is zoomed to 16.0 mm without...
-
I want sales representatives who can stand on their own. Once they have been through training and show how to apply their knowledge, it shouldnt be necessary for me to constantly tell them how they...
-
Stan Kaiser is confused about the source documents used in assigning materials and labor costs. Identify the documents and give the entry for each document.
-
Find the units digit of 329 +1112 +15. modulus n, an
-
What is output of the following program? #include using namespace std; int x = 19; int main () { int x = 21; { int x = 41; cout <
-
Does the fact that monopolistically competitive markets are not allocatively or productively efficient mean that there is a significant loss in economic well-being to society in these markets? In...
-
Consider the following graph: a. Is it possible to say whether this firm is a perfectly competitive firm or a monopolistically competitive firm? If so, explain how you are able to make this...
-
Which edges could be omitted from the network in Fig. 499 without decreasing the maximum flow? 8 (1) 8,4 7,5 4 2 6, 1 6, 5 8,5 4, 2 5 3 2, 1 4, 2 10, 8 6 6, 1 (7) t
-
Write a pseudocode procedure that allocates pages of memory on request. Assume that 100 pages of size 1 M byte, 2 M bytes, and 4 M bytes are available. The procedure should take the size of the page...
-
In 2018, Ollie Lingo and his wife have several endowment life insurance policies. On the first, which begins payment in 2019 , but was fully paid by 2010 , a dividend of \(\$ 200\) is declared and...
-
Comprehensive Problem (Tax Return Problem). Harvey and Betty Duran, both age 37 , are married with one dependent child. Determine their taxable income from the following information for 2017, and...
-
Each of the following items must be considered in preparing a statement of cash flows (indirect method) for Granderson Inc. for the year ended December 31, 2015. (a) Plant assets that had cost 25,000...
-
Answer each of these unrelated questions. (a) On January 1, 2015, Yang Corporation sold a building that cost 25,000,000 and that had accumulated depreciation of 10,000,000 on the date of sale. Yang...
-
The government net financial liabilities as a percentage of GDP is given in the table below for selected countries in 2015 according to stats.oecd.org. Present these data in a graph that allows you...
-
Read Case Study Google: Dont Be Evil Unless and answer the following: Given its mission of providing information to the world, should Google censor searches in China?
-
Briefly explain whether each of the following is (1) an example of a discretionary fiscal policy, (2) an example of an automatic stabilizer, or (3) not an example of fiscal policy. a. The federal...
-
Identify each of the following as (1) part of an expansionary fiscal policy, (2) part of a contractionary fiscal policy, or (3) not part of fiscal policy. a. The corporate income tax rate is...
-
Another infrastructure project in northern California funded in part by ARRA funds involved expanding the Caldecott Tunnel between the cities of Oakland and Orinda. A spokesperson for the California...
-
York's outstanding stock consists of 80,000 shares of cumulative 7.5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of...
-
Hudson Community College enrolls students in two departments, Liberal Arts and Sciences. The college also has two service departments, the Library and the Computing Services Department. The usage of...
-
Robert is designing a new Active Directory Domain Services infrastructure for a company called Litware, Inc., which has its headquarters in New York and two additional offices in London and Tokyo....
Study smarter with the SolutionInn App