Which of the following is true for a monopolistically

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Blueprint Reading for Welders
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Chapter 26 / Exercise 2
Blueprint Reading for Welders
Bennett/Siy
Expert Verified
43) Which of the following is true for a monopolistically competitive firm in long-run equilibrium?A) P= ATCand MR= B) P= ATCand P=
MC.
MC.
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Blueprint Reading for Welders
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Chapter 26 / Exercise 2
Blueprint Reading for Welders
Bennett/Siy
Expert Verified
C) P> ATCand P> D) P> MRand MC= ATCAnswer:
MR.
.
AFigure 13-1557) Refer to Figure 13-15to answer the following questions.a.What is the profit-maximizing output level?b.What is the profit-maximizing price?c.What is the average total cost at the profit-maximizing output level?d.What area represents the firm's profit?e.At which output level are economies of scale exhausted?f.Does this graph most likely represent the long run or the short run? Why?Answer:
.
.
.
.
.
60) The table below shows the demand and cost data facing "Velvet Touches," a monopolisticallycompetitive producer of velvet throw pillows. QuantityPriceTotalRevenueMarginalRevenueTotal CostMarginalCost1$30$322284332653424645227662090718106816126Use the data to answer the following questions.a.Complete the Total Revenue (TR), Marginal Revenue (MR) and Marginal Cost (MC) columnsabove.b.What are the profit-maximizing price and quantity for Velvet Touches?c.Is the firm making a profit or a loss? How much is the profit or loss? Show your work.d.Is this firm operating in the long run or in the short run? Explain your answer.e.If the firm's profit or loss is typical of all firms in the market for throw pillows, what is likely to happen in the future? Will there be more firms or will some existing firms leave the industry? Explain your answer.f.What will happen to the typical firm's profit or loss after all entry/exit adjustments?
Answer:

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