A firm in monopolistic competition faces a demand curve with own-price elasticity equal to -5 and an advertising elasticity equal to 0.15. This firm should devote ______% of its revenues to advertising.
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A firm in
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- Exercise 5.5 In this unit we have seen that monopolistically competitive firms could increase the amount they produce and reduce the ATC of production. Why don't they?Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure. Monopolistic competition is a market characterized by: Multiple choice question. a relatively large number of sellers producing a differentiated product - for which they have no control over the price they charge - in a market with relatively easy market entry and exit. a relatively large number of sellers producing a differentiated product - for which they have some control over the price they charge - in a market with relatively easy market entry and exit. a relatively small number of sellers producing a differentiated product - for which they have some control over the price they charge - in a market with relatively easy market entry and exit. a relatively large number of sellers producing a differentiated product - for which they have some control over the price they charge - in a market with relatively difficult…A firm in a monopolistically competitive market has a monopoly power because: O There are very few other sellers in the market. There are many firms selling similar products. The firm is not concerned with entry of new firms. The firm's product is differentiated. ◄ Previous MAY 4 Next Not saved Submit tv
- PRICE (Dollars per bike) 500 450 400 350 ATC 300 250 200 150 100 50 MC MR Demand 0 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, the shop is earning shops in the industry than in long-run equilibrium. Profit or Loss profit, which means there areYou're the manager of a firm that has constant marginal cost of $6. Fixed cost is zero. The market structure is monopolistically competitive. You're faced with the following demand curve: $12 10 Price 8 6 4 2 0 3 Demand 100 200 300 400 500 600 Quantity Show Transcribed Text a. Determine graphically the profit-maximizing price and output for your firm in the short run. Demonstrate what profit or loss you'll be making. (Please draw a graph) b. What happens in the long run?(J) Pure monopolies are said to be allocatively inefficient because price is equal to marginal cost. price is greater than marginal cost. price is less than marginal cost. they produce whereMR>MC
- How does advertising impact monopolistically competitive firms? (a) advertising always causes monopolistically competitive firms to experience lower average costs (b) it either causes a firm's perceiveddemand curve to become more elastic, or advertising causes demand for the firm's product to increase.● Why do firms operating in a monopolistically competitive industry have the power to raise the prices of their products or services? The competition in the industry is insignificant. The entry barriers in the industry are extremely high. The number of buyers in the industry is small. 0 The firms can differentiate their product offerings.FRONT PAGE Pricing Disney+ Disney decided it wanted to provide streaming services directly to customers, rather than renting its library of films and television shows to other streaming services like Netflix. But how successful would a streaming service be? In other words, what did the demand for a "Disney+" streaming service look like? Disney knew that the number of subscribers would depend not just on the attractiveness of the Disney archives, but also on the subscription price. After doing some market research, Disney decided to launch Disney+ at a price of $6.99 a month (or $69.99 per year). When Disney+ was launched on November 12, 2019, 10 million people signed up on the first day-a resounding success! Source: News reports, October-December 2019. Suppose Disney+ changes its monthly subscription price from $7 to $9 per month. Graphically show the impact of this price change in the following markets: a. Popcorn, pizza, and other movie snacks
- Exercise A.6. Do monopolistically competitive markets normally have the optimal number of products?Question 36 There are complete barriers to entry in monopolistic competition. True FalseMonopolistic Competition a. Graphically represent a monopolistically competitive firm, using the curves that would provide information such as the profit maximizing price and quantity as well as the cost at the profit maximizing quantity. b. Show the profit maximizing price and quantity for this firm at a price of $185 and a quantity of 7500. c. Show this firm earning a profit of $45000. Make sure to solve for the numerical value for the average total cost (ATC) at the quantity of 7500. d. As this is a short run scenario, state what will happen to the product price and average costs for this firm as it transitions from the short-run to the long-run.