Top Posters
Since Sunday
t
7
m
6
k
6
F
5
j
5
t
5
j
5
G
5
f
5
a
5
d
5
c
5
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
johndoris johndoris
wrote...
Go to Answer
Posts: 144
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 a decrease in industry demand led to an inward shift of each firm's demand curve, a typical firm would



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

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

▸ exit the industry and the industry would shut down.

▸ decrease costs in order to break even at PL and QL in the long run.

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

Microeconomics


Edition: 17th
Author:
Read 29 times
1 Reply
Replies
Answer verified by a subject expert
isaw09isaw09
wrote...
#1
Posts: 135
Rep: 0 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

johndoris Author
wrote...

A year ago
Smart ... Thanks!
deathwing
wrote...

Yesterday
This site is awesome
IvanaVR
wrote...

2 hours ago
You make an excellent tutor!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  834 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 254
  
 176
  
 345
Your Opinion
What's your favorite math subject?
Votes: 314
Previous poll results: Which country would you like to visit for its food?