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

[Chelseaamend]

Question 1

Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 












Refer to Figure 15.4. If The Hand Made Shirt 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?

◦ $18
◦ $22
◦ $23
◦ $25

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. To maximize profits in the short run, this firm should produce ________ personalized sweaters.

◦ 0
◦ 100
◦ 140
◦ 150

[chreslie]

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Answer Preview

Only 49% of students answer this correctly

[cartlidgeashley]

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. To maximize profits in the short run, this firm should set a price of

◦ $36.
◦ $44.
◦ $46.
◦ $50.

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 this firm is producing the profit-maximizing level of output and selling it at the profit-maximizing price, the firm's profit is

◦ -$400.
◦ -$350.
◦ -$500.
◦ -$50.

[jordangronback]

Answer 1

$46.

Answer 2

-$400.

[cartlidgeashley]

Excellent

[jordangronback]

Great! Please up vote

[kamilo84]

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 $275 and is a monopolistically competitive firm. If this firm is producing the profit-maximizing output level, the firm's profit is

◦ -$275.
◦ -$100.
◦ -$75.
◦ $0.

Question 2

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

◦ firms will leave the industry until each firm earns an economic profit.
◦ some firms will leave the industry until the remaining firms earn a normal profit.
◦ firms will enter the industry, which will increase the demand for the product.
◦ the government will subsidize the firms to eliminate any losses the firms incur.

[l.stuut]

Answer 1

-$275.

Answer 2

some firms will leave the industry until the remaining firms earn a normal profit.

[humphriesbr@me.com]

Question 1

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 minimum level of fixed cost that would lead to the firm continuing to operate in the short run?

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

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 is attempting to maximize profits in the short run, the ________ quantity is 100 personalized sweaters.

◦ break-even
◦ profit-minimizing
◦ loss-minimizing
◦ shut down

[jamesnevil303]

Answer 1

$400

Answer 2

loss-minimizing