Exam 10: Monopolistic Competition: The Competitive Model in a More Realistic

Suppose a monopolistically competitive firm sells 25 units at a price of $10.What is its marginal revenue per unit of output if it sells 5 more units of output when it reduced its price to $9?

A monopolistically competitive industry that earns economic profits in the short run will be able to expand its market share even if the market size remains constant.

Table 10.4 Table 10.4 lists estimated revenues and costs (per week)for plastic vials (100 vials per box)for the Victoria Biological Supplies Company.Victoria sells plastic vials to university and private research laboratories. -Refer to Table 10.4.Victoria's profit-maximising quantity sold (Q)and price (P)are

Suppose Jason owns a small pastry shop.Jason wants to maximise his profit, and thinking back to the university microeconomics class he took, he decides he needs to produce a quantity of pastries which will minimise his average total cost.Will Jason's strategy necessarily maximise profits for his pastry shop?

If a typical monopolistically competitive firm is incurring short-run losses, then

A monopolistically competitive firm chooses

Figure 10.5 -Refer to Figure 10.5.The chocolate store represented in the diagram is currently selling Q_a units of candy at a price of P_a.Is this candy store maximising its profit and if it is not, what would you recommend to the firm?

What one good thing happens when a monopolistically competitive firm lowers it price?

When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to

The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair.It sells 8 pairs of jeans per day at a price of $90 per pair.What is the marginal revenue of the eighth pair of jeans?

When a firm faces a downward-sloping demand curve, marginal revenue

In theory, in the long run, monopolistically competitive firms earns zero profits.However, in reality there are some ways by which a firm can avoid losing profits.Which of the following is one such way?

Table 10.2 Eco Energy is a monopolistically competitive producer of a sports beverage called Power On.Table 10.2 shows the firm's demand and cost schedules. -Refer to Table 10.2.The marginal profit from producing and selling the 5^th case is

Figure 10.4 Figure 10.4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 10.4.The area that represents the total revenue made by the firm is

Assume that price exceeds average variable cost over the relevant range of demand.If a monopolistically competitive firm is producing at an output where marginal revenue is $111.11 and marginal cost is $118, then to maximise profits the firm should increase its output.

A monopolistically competitive firm that earns an accounting profit in the short run

Figure 10.4 Figure 10.4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 10.4.The area that represents the total fixed cost of production is

Economists agree that a monopolistically competitive market structure

Complete the following table. __________________________________________________________________________________________________________________________________________________________________________________________

Which of the following is not a characteristic of monopolistic competition?