Top Posters
Since Sunday
n
3
j
3
x
2
c
2
2
p
2
n
2
3
2
C
2
z
2
k
2
d
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
32264 32264
wrote...
Go to Answer
Posts: 133
Rep: 0 0
A year ago

The diagram below shows demand and cost curves for a monopolistically competitive firm.

Short description: A graph plots output against dollars per unit. Long description: The horizontal axis representing output lists the following values from left to right: Q subscript 1 and Q subscript 2. The vertical axis representing dollars per unit lists the following values from top to bottom: P subscript 1 and P subscript 2. The graph plots two lines and two curves. The curve, LRAC passes through the following points: (Q subscript 1, P subscript 1) and (Q subscript 2, P subscript 2). The graph plots two curves and two lines. The curve, MC passes through the point, (Q subscript 2, P subscript 2). The line demand passes through the following points: (Q subscript 1, P subscript 1). The line, MR is decreasing. The two curves intersect at E subscript 2 (Q subscript 2, P subscript 2). The curve, LRAC intersects the line, Demand at point E subscript 1 (Q subscript 1, P subscript 1). The curve, MC intersects the line, D and line, MR.

FIGURE 11-4

Refer to Figure 11-4. If an increase in industry demand led to an outward shift in each firm's demand curve, and no change to the firm's costs, the typical firm would



▸ expand its output in the long run.

▸ be making profits and new firms would enter the industry in the long run.

▸ be making losses and some firms would exit the industry in the long run.

▸ decrease costs in order to break even at P1 and Q1 in the long run.

▸ increase costs in order to break even at P1 and Q1 in the long run.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 27 times
1 Reply
Replies
Answer verified by a subject expert
lpantslpants
wrote...
#1
Posts: 117
Rep: 1 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

32264 Author
wrote...

A year ago
This calls for a celebration Person Raising Both Hands in Celebration
rileyjones420
wrote...

Yesterday
Brilliant ツ
njn;l
wrote...

2 hours ago
This helped my grade so much Perfect
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  967 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 778
  
 836
  
 430
Your Opinion
Which is the best fuel for late night cramming?
Votes: 145
Previous poll results: Who will win the 2024 president election?