Please give me correct answer with full explanation otherwise i give downvoteNote:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. Priceand costper unitDPaP₂P₁PoTMAMGATCAVCDemandQuantityFigure 12-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches.Refer to Figure 8-3. If the firm represented in the diagram is currently producing and selling Qa units, the firmO is making positive economic profitis making negative economic profitO is making zero economic profitO should shut down.

In the case of a monopolistically competitive firm there are large number of firms which produce…

Price and cost per unit Pa P₂ Pa Q Q a Q° P₁ C 6 MC ATC AVC Demand MR Quantity Figure 12-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches Refer to Figure 8-3. If the firm represented in the diagram is currently producing and selling Qa units, the firm Ois making positive economic profit Ois making negative economic profit O is making zero economic profit O should shut down.

Price and cost per unit Pa P₂ Pa Q Q a Q° P₁ C 6 MC ATC AVC Demand MR Quantity Figure 12-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches Refer to Figure 8-3. If the firm represented in the diagram is currently producing and selling Qa units, the firm Ois making positive economic profit Ois making negative economic profit O is making zero economic profit O should shut down.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 10P

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Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. PRICE (Dolars per kit) 100 8 80 70 50 8 10 0 MO 10 ATC 20 30 O True O False MR 60 70 QUANTITY (Thousands of kits) Demand 40 80 90 100 Mon Comp Outcome Min Unit Cost Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is True or False: This indicates that there is excess capacity in the market for kits. at the optimal quantity for each the minimum average total cost.
are 13-7 sis and evenue $4 P2 MC FM/ ATC E OG AS SS AVC (oo) ubonq aviimoo loiteiloqo sol o bnal Po Demand MA Quantity ure 13-7 shows short-run cost and demand curves for a monopolistically competitive firm in the footwear market. 3) Refer to Figure 13-7. Which of the following statements describes the best course of action for the firm depicted in the diagram? * A) The firm should minimize its losses by producing Qy units and charging a price of P1. B) The firm should minimize its losses by producing Qy units and charging a price of P2. C) The firm should minimize its losses by producing Qy units and charging a price of Po. D) The firm should exit the industry because its price is less than its average total cost. 3) A 4) Refer to Figure 13-7. Which of the following is the area that represents the profit or loss experienced by the firm? A) A loss represented by the rectangle PivwPo. B) An accounting profit equal to P1vwPo. C)A loss represented by the rectangle P2uvP1. D) A loss…
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9 of 15 Warwick Inc. produces in a monopolistically compettive market. Which of the following corectly explains howa fmin this market struchure would transition trom the short run to the long run? O The supemomal profits eamed by Warwick Inc in the short run will attract new firma into the market. This wil shit the market supply curve to the right, which will reduce the market price and the price faced by Warwick ine. The price wil keep falling until Average Revenue equals Average Cost and only normal profits are made. O The supermormal profits eamed by Warwick Inc. in the short run will attract new firms into he martet. This wil shit Warwick ine. demand curve to the left and t wit continue to shit left until Average Revenue equals Average Cost and only normal profits are made O The supemomal profits eamed by Wanwick Inc. in the short run will lead to the market demand aurve shifing to the right, which will raise the price fims can sell at and ts wil atract now frms into the market.…
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