Lesson 10 Written Homework Assignment 1 Using An Appropriate Graph Obtained From Google Images Show And Explain Why Mon 1 (24.97 KiB) Viewed 20 times
Lesson 10 Written Homework Assignment 1 Using An Appropriate Graph Obtained From Google Images Show And Explain Why Mon 2 (31.74 KiB) Viewed 20 times
Lesson 10-Written Homework Assignment 1. Using an appropriate graph obtained from google images show and explain why monopolistic competitive firms can only make zero economic profits in the long run? 2. Assume that a monopolist competitive firm is making normal profits. a. Compute the firm's total cost if its revenues are $100 million? b. Compute the firm's implicit costs if its normal profits are $20 million? c. Is this firm operating in the short or long run? Please explain? d. Provide examples of two monopolistic competitive businesses in your hometown? In what ways do these businesses exemplify the monopolistic competitive model?
3. Use the graph below to answer questions a-g Price and cost (dollars per client) 100.00 90.00 8000 MC ATC 70,00 60.00 50.00 40.00 30 00 2000 10.00 MR 8 10 Quantity (clients per day) a. Is the monopolistic competitive firm operating in the short or long run? b. Briefly explain your answer to question (a)? c. Is the monopolistic competitive firm making a loss or a profit? d. Briefly explain your answer to (c)? e. How much loss or profit is it making? f. How many units would the monopolistic firm produce to maximize profits? g. What price would the monopolistic competitive firm charge to maximize profits?
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