Refer to the information provided in Figure 15.5 below to answer ...

[humphriesbr@me.com]

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[jamesnevil303]

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[erika]

Question 1

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 












Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. At the profit-maximizing output in the short run, the firm ________ of $46.

◦ has an average total cost
◦ earns a profit
◦ should set a price
◦ has an average variable cost

Question 2

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 












Refer to Figure 15.5. Assume The Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. If the firm produces the profit-maximizing level of output and sells it at the profit-maximizing price, the firm ________ of $400.

◦ suffers a loss
◦ earns a profit
◦ has total revenue
◦ has total cost

[mathjasmine]

Answer 1

should set a price

Answer 2

suffers a loss

[skymedlock]

Question 1

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 












Refer to Figure 15.5. In the long run in this monopolistically competitive industry

◦ some firms will enter the industry and industry profits will increase.
◦ some firms will leave the industry until the remaining firms break even economically.
◦ all firms will leave the industry.
◦ product supply will increase so prices will go up.

Question 2

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 












Refer to Figure 15.5. If the Custom Sweater Shop is monopolistically competitive, what is the maximum level of average variable cost that would lead to the firm continuing to operate at the profit-maximizing level in the short run?

◦ $400
◦ $4600
◦ $5000
◦ The firm would continue to operate regardless of the level of variable costs.

[vickyvicksss]

Answer 1

some firms will leave the industry until the remaining firms break even economically.

Answer 2

$400

[skymedlock]

TY

[vickyvicksss]

You're welcome