Figure 15P-2 shows the monopolistically competitive market for smartphones. a. Plot the profit-maximizing price and quantity on
Question:
a. Plot the profit-maximizing price and quantity on the graph. Is this producer earning positive or negative profits in the short run?
b. In the long run, will supply or demand for this producer's good be affected? Will economic profits increase or decrease for this producer?
Figure 15P-2:
Transcribed Image Text:
Price (S) MC 300 280 260 240 220 200 180 160 140 120 100 80 60 40 20 ATC MR 40 60 20 80 100 Smartphones (millions)
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 81% (11 reviews)
a This producer is earning negative profits The producer is p...View the full answer
Answered By
Ali Khawaja
my expertise are as follows: financial accounting : - journal entries - financial statements including balance sheet, profit & loss account, cash flow statement & statement of changes in equity -consolidated statement of financial position. -ratio analysis -depreciation methods -accounting concepts -understanding and application of all international financial reporting standards (ifrs) -international accounting standards (ias) -etc business analysis : -business strategy -strategic choices -business processes -e-business -e-marketing -project management -finance -hrm financial management : -project appraisal -capital budgeting -net present value (npv) -internal rate of return (irr) -net present value(npv) -payback period -strategic position -strategic choices -information technology -project management -finance -human resource management auditing: -internal audit -external audit -substantive procedures -analytic procedures -designing and assessment of internal controls -developing the flow charts & data flow diagrams -audit reports -engagement letter -materiality economics: -micro -macro -game theory -econometric -mathematical application in economics -empirical macroeconomics -international trade -international political economy -monetary theory and policy -public economics ,business law, and all regarding commerce
4.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Figure 15P-2 shows the monopolistically competitive market for smartphones. a. Is this producer earning positive or negative profits in the short run? b. In the long run, will economic profits...
-
Describe the monopolistically competitive market structure and give some examples.
-
Figure 15P-3 shows a monopolistically competitive market for a fictional brand of shampoo called SqueakyKleen. a. What is the price and quantity of SqueakyKleen in the short run? b. What is the...
-
What is a derivative contract? Give an example. How are derivatives related to risk management?
-
Consider the following transactions for CC Publishing. 2018 Dec. 6 Received a $18,000, 90-day, 6% note in settlement of an overdue accounts receivable from Go Go Publishing. 31 Made an adjusting...
-
Why is business so important to a countrys economy?
-
What are some of the different ways in which a firm can get involved in international business?
-
A school district grants teachers a sabbatical leave every seven years. Yet, consistent with GAAP, it fails to accrue a liability for such leave over the period in which the leave is earnednot even...
-
Explain what a linear transformation is from the algebraic and geometric, showing the relationship between them.
-
Changes in Cost Structure; Break-Even Analysis; Operating Leverage; Margin of Safety Morton Companys contribution format income statement for last month is given below: The industry in which Morton...
-
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopolistically competitive firm are shown in Figure 15P-4. a. Plot the profit-maximizing price and...
-
Match the statement about goods sold in a market with the market type. a. There are imperfect substitutes for the goods. b. There are no substitutes for the goods. c. The goods may or may not be...
-
Convert the following radian measures to degrees. 13/15
-
2. Consider the Cagan model of nominal exchange rates. We will consider the impact on the exchange rate of an expectation of quantitative easing in the foreign economy. et = - (1) (177) [ms-oys + m...
-
Suppose the World includes two countries H and F, producing two goods 1 & 2, with the following information: (1). labor endowment: LH = 6, LF = 4 (1). labor requirement for producing 1 unit of good:...
-
3) How long did the arrow fly through the air before striking the ground? (When would h= 0 ft?) h=-32t+200t+5.75
-
The battery division of an automobile manufacturer makes and sells car batteries. There is a market for batteries outside of the organization, and the battery division can sell 100,000 batteries...
-
Factor the expression completely. 8w2-56w-144 =
-
In my opinion, we ought to stop making our own drums and accept that outside suppliers offer, saidWim Niewindt, managing director of Antilles Refining, N.V., of Aruba. At a price of 36 florins per...
-
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
-
1. The presence of _______explains the negatively sloped portion of a long-run average-cost curve, and the notion of _______explains the horizontal portion of the curve. 2. Consider the information...
-
1. The average cost of producing an iPhone is about $ _____. 2. The cost of producing the first fake killer whale is about three times the cost of producing the second because the firm uses _____...
-
1. The average cost of producing an iPhone is about $ _____. 2. The cost of producing the first fake killer whale is about three times the cost of producing the second because the firm uses _____...
-
Coronado Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current...
-
Roger Manufacturing produces snow shovels. The selling price per snow shovel is $28.00. There is no beginning inventory. Costs involved in production are: Direct material Direct labor $4.00 4.00...
-
1. In Case I, you assume there is only one operator (Operator 1) 2. Workstation 2 and Workstation 3 has one oven each. 3. There are two auto times, one at workstation 2, proof dough (5 sec) and other...
Study smarter with the SolutionInn App