# For the monopolistically competitive firm a price p

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Chapter 26 / Exercise 2
Bennett/Siy Expert Verified
40) For the monopolistically competitive firmA) Price (P) = Marginal Revenue (MR) = Average Revenue (AR).B) P= MR> ARC) P= AR> MRD) P> MR= ARAnswer:
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C41) 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. The marginal revenue of the eighth pair of jeans is
A62) Suppose that if a local McDonald's restaurant reduces the price of a Big Mac from \$4.00 to \$3.25, the number of Big Macs it sells per day will increase from 4 to 5. Explain the output effectand the price effect resulting from this change. Using a graph, illustrate both the loss in revenue from selling each of the first 4 Big Macs for \$0.75 less and the additional revenue from selling 1 more Big Mac. What is the total change in revenue received which results from this price decrease?
##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook. The document you are viewing contains questions related to this textbook.
Chapter 26 / Exercise 2
Bennett/Siy Expert Verified
63) Complete the following table.EnergyDrinksConsumedper WeekPrice (P)TotalRevenue(TR)Average Revenue(AR)MarginalRevenue(MR)0\$6.0015.5025.0034.5044.0053.5063.0072.5082.00
13.2 How a Monopolistically Competitive Firm Maximizes Profit in the Short Run2) A monopolistically competitive firm maximizes profit whereA) price = marginal revenue.B) price > marginal cost.C) marginal revenue > average revenue.D) total revenue > marginal cost. Answer:
B3) Unlike a perfectly competitive firm, for a monopolistically competitive firm
BFigure 13-4Figure 13-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. 8) Refer to Figure 13-4. If the firm represented in the diagram is currently producing and selling Qa units, what is the price charged?
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C9) Refer to Figure 13-4.What is the area that represents the total revenue made by the firm?
CDiff: 2 Page Ref: 429-430
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