PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200+ LRAC 150 100 50 + MC o ° 50 100 150 MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False
PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200+ LRAC 150 100 50 + MC o ° 50 100 150 MR Demand 200 250 300 350 400 450 500 QUANTITY (Units) True or False: The long-run equilibrium price is $235 per unit. True False True or False: The long-run equilibrium quantity is 185 units. True False True or False: The LRAC curve is at its minimum at a quantity of 100 units. True False Monopolistically Competitive Outcome Minimum of the LRAC True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output. True False
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter16: Monopolistic Competition
Section: Chapter Questions
Problem 5PA
Related questions
Question
![PRICE PER UNIT (Dollars)
500
450
400
350
300
250
LRAC
200
150
100
MC
50
MR
Demand
0
0
50 100 150
200 250 300 350 400 450 500
QUANTITY (Units)
True or False: The long-run equilibrium price is $235 per unit.
True
False
True or False: The long-run equilibrium quantity is 185 units.
True
False
True or False: The LRAC curve is at its minimum at a quantity of 100 units.
True
False
Monopolistically Competitive Outcome
Minimum of the LRAC
True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output.
True
False](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6ea35f4-cb93-4d80-9d38-4197f640b54a%2F56ac9e84-306c-4d99-8d9c-d4e2debff036%2Ftx37kp_processed.png&w=3840&q=75)
Transcribed Image Text:PRICE PER UNIT (Dollars)
500
450
400
350
300
250
LRAC
200
150
100
MC
50
MR
Demand
0
0
50 100 150
200 250 300 350 400 450 500
QUANTITY (Units)
True or False: The long-run equilibrium price is $235 per unit.
True
False
True or False: The long-run equilibrium quantity is 185 units.
True
False
True or False: The LRAC curve is at its minimum at a quantity of 100 units.
True
False
Monopolistically Competitive Outcome
Minimum of the LRAC
True or False: The long-run equilibrium price is less than the marginal cost of producing the equilibrium output.
True
False
![3. Study Questions and Problems #3
The following graph represents a monopolistically competitive firm in long-run equilibrium.
Place the black point (cross sign) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive
company. Next, place the grey star on the graph to indicate the point where the LRAC reaches a minimum.
PRICE PER UNIT (Dollars)
500
450
400
350
300
250
200
150
100
50
MC
0
+
0
50
100
LRAC
MR
Demand
150 200 250 300 350 400 450 500
QUANTITY (Units)
True or False: The long-run equilibrium price is $235 per unit.
True
False
True or False: The long-run equilibrium quantity is 185 units.
True
O False
True or False: The LRAC curve is at its minimum at a quantity of 100 units.
Monopolistically Competitive Outcome
Minimum of the LRAC
?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6ea35f4-cb93-4d80-9d38-4197f640b54a%2F56ac9e84-306c-4d99-8d9c-d4e2debff036%2Fwb5l3eb_processed.png&w=3840&q=75)
Transcribed Image Text:3. Study Questions and Problems #3
The following graph represents a monopolistically competitive firm in long-run equilibrium.
Place the black point (cross sign) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive
company. Next, place the grey star on the graph to indicate the point where the LRAC reaches a minimum.
PRICE PER UNIT (Dollars)
500
450
400
350
300
250
200
150
100
50
MC
0
+
0
50
100
LRAC
MR
Demand
150 200 250 300 350 400 450 500
QUANTITY (Units)
True or False: The long-run equilibrium price is $235 per unit.
True
False
True or False: The long-run equilibrium quantity is 185 units.
True
O False
True or False: The LRAC curve is at its minimum at a quantity of 100 units.
Monopolistically Competitive Outcome
Minimum of the LRAC
?
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