Question: Please try to give me a new answer which is never posted! 3. Price and cost per unit S MC PA T ATC P. R

Please try to give me a new answer which is never posted!

3. Price and cost per unit S MC PA T ATC P. R Demand MR 0 Quantity The diagram above represents a monopolistically competitive firm. Answer the questions below. (25 points) a. Is this firm operating in the short-run or long-run? How do you know? (5pt) b. Calculate this firm's accounting profit. (5pt) c. From the diagram, what is the productively efficient output for this firm? (5pt) d. From the diagram, economies of scale are maximized at which output level? Explain. (5pt) e. From the diagram, what is the allocationly efficient output for this firm? Explain. (5pt)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Figure 12-5 Price and cost MC ATC AVC 20 - MR 15 14 11 5 750 1,100 1,350 1,800 Quantity Figure 12-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive...

Please try to give me a new answer which is never posted! 2. $Price/cost per unit MC ATC AVC d P4 C P3 P2 P1 Demand MR 0 Q1 Quantity The diagram above shows a monopolistically competitive firm in the...

In order to answer these questions, you will need to read Chapter 9: " Market Equilibrium & Product Price - Imperfect Competition Question #1: Explain the 3 types of "Imperfect" market structures...

Monopolistically Competitive Market 1. What is the most important difference between perfectly competitive markets and monopolistically competitive markets? Why are demand and marginal revenue...

Please help our assignment for microecon 31-1: Moving toward Long-run Equilibrium: Consider a perfectly competitive industry in the diagram below. The left panel of the diagram depicts the induster...

I have the calculations done on an excel sheet but I need it to be written out as asked below. Specifically focus on the bold item, creating an appendix or exhibit that provides a walk-through...

Price and cost per unit 45 MC 32 ATC 22 20 18 15 Demand MR 50 70 90 Quantity 3) Refer to Figure 15-7. Use the figure above to answer the following questions. a. What is the profit-maximizing quantity...

Price and cost per unit S MC PA T ATC P3 P. R Demand MR 0 Quantity The diagram above represents a monopolistically competitive firm. Answer the questions below. (25 points) a. Is this firm operating...

Maguire Co. reported accounts receivable of $15,000 and an allowance for uncollectible accounts of $1,500 on its December 31, 2009, Balance Sheet. During 2010, credit sales totaled $450,000;...

Economic investment refers to: savings for retirement and other long-term goals. capital goods purchased by households and firms and governments. O purchases of stock and bonds O purchases in...

is post - tax cost of debt is calculated anually or simiannually

1. It is possible to shift the balance of power and dependence between channel members in ways that contribute to a relationships well being EXCEPT: a. When near-equivalence in investment is not...

Personal role: This consists of service to family and friends.

The role of life: It consists of your own service to yourself.

Competence: What knowledge, skills and attitude do I have towards what I am going to do?