Why demand curve face monopolistically competition
Why is demand curve facing a monopolistically competitive firm probable to be very elastic?
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Answer: This is because the products generated by monopolistically competitive firms are close substitutes to one other. When products are close substitutes to one other the elasticity of demand is high, that is what makes the firm’s demand curve (that is, under monopolistic competition) much elastic.
Linear consumption function: It is a consumption function that is given on the basis of steady marginal propensity to consume. C = c + bY Here c = aut
A company consists $27 per unit in variable costs and $1,000,000 annually in fixed costs. Demand is predicted to be 100,000 units annually. Determine the price if a markup of 40% on total cost is used to determine the price?
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For Christmas tree in this market, Curve H is this: (w) industry’s long-run supply curve. (x) firm’s demand curve in the short run. (y) industry’s marginal cost curve. (z) firm’s long run marginal cost curve.
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When the slope of a supply curve which goes through the basis equals one, supply is: (w) price elastic. (x) price inelastic. (y) unitarily price elastic. (z) indeterminate like to elasticity without more information. Q : Variation in price elasticity as price The only supply curve which has price elasticity which varies as the price of output increases is within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D. Q : Price discrimination by monopoly power A firm can practice price discrimination when this: (i) confronts a perfectly elastic demand curve. (ii) is a pure quantity adjuster. (iii) has several monopoly power and is capable to separate its customers in various groups with different elasticiti
The only supply curve which has price elasticity which varies as the price of output increases is within: (w) Panel A. (x) Panel B. (y) Panel C. (z) Panel D. Q : Price discrimination by monopoly power A firm can practice price discrimination when this: (i) confronts a perfectly elastic demand curve. (ii) is a pure quantity adjuster. (iii) has several monopoly power and is capable to separate its customers in various groups with different elasticiti
A firm can practice price discrimination when this: (i) confronts a perfectly elastic demand curve. (ii) is a pure quantity adjuster. (iii) has several monopoly power and is capable to separate its customers in various groups with different elasticiti
Profit maximization needs a purely competitive firm to manufacture at an output level where: (i) marginal revenue > marginal cost. (ii) marginal cost equals the competitive price. (iii) marginal cost is falling. (iv) marginal reven
Of the given price elasticities for market supply curves or market demand curves, and the one which is absolutely inconsistent along with standard economic theory would be one for that, across feasible ranges of prices as: (i) supply
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