5 . How short-run profit or losses induce entry or exit

Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).

Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.

9 . How short run profit or losses in ucs entry or wait Fantastique Bikin is a company that manu arts bikin in a monopolist ally competitive market. The following graph shows Fantastique's demand ful revenue curve [MR), m lastal cast curve (ATC) Place what black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company's profit or loss. Mumopolisically Compadres Outcame PRICE (Dolars per bikeil QUANTITY (East Given the profit-maximizing choice of output and price, the shop is making. profit, which means there are shops in the industry relative to the long-run equilibrium. Now consider the long run in which bike ma rers are free to enter and exit the market. Show the possible affect of this free entry and ant by shifting the demand curve for a typical individual pro or of bikes on the following graph. PRICE (Octers par bike) QUANTITY (Bikes) which of the following statements are true about both monopolistic competition and monopolis? Check all that apply. O Price equals average total cost in the long rut. OFirma earn aira profit in the long run. OFirma and not price lakers. OFirma can cam positive profit in the lang run