Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demandcurve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus.Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitivecompany. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.(?)PRICE (Dollars per scooter)5004504003503002501501005000MC50PRICE (Dollars per scooter)100MRATCDemand150 200 250 300 350 400 450 500QUANTITY (Scooters)Given the profit-maximizing choice of output and price, Citrus Scooters is earningMonopolistically Competitive Outcomesellers in the industry relative to the long-run equilibrium amount.Now consider the long run in which scooter manufacturers are free to enter and exit the market.QUANTITY (Scooters)Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of scooters on the following graph.DemandProfit or LossFirms can earn positive profit in the long run.O Firms earn zero profit in the long run.Price is above marginal cost.Price equals average total cost in the long run.ODemandprofit, which means there are(?)Which of the following statements are true for both monopolistically competitive markets and monopoly markets? Check all that apply.

Monopolistic competition is a type of market structure in which there are a large number of buyers…

Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. 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. (?) PRICE (Dollars per scooter) 500 450 400 350 300 200 150 100 50 0 0 MC 50 PRICE (Dollars per scooter) 100 ATC MR Demand 150 200 250 300 350 400 450 500 QUANTITY (Scooters) Given the profit-maximizing choice of output and price, Citrus Scooters is earning sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to enter and exit the market. QUANTITY (Scooters) Monopolistically Competitive Outcome Demand ++ Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of scooters on the following graph. (? Profit or Loss Firms can earn positive profit in the long run. Firms earn zero profit in the long run. Price is above marginal cost. Price equals average total cost in the long run. Demand profit, which means there are Which of the following statements are true for both monopolistically competitive markets and monopoly markets? Check all that apply.

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 5P