Monopolistic competitive firm in normal accounting profits

This monopolistically competitive firm in illustrated figure produces Q units as well as experiences: (1) economic profits equal to 0cbQ. (2) economic losses equal to cpab. (3) more than normal accounting profits. (4) marginal cost in excess of average total cost. (5) total revenue less than total cost.

971_Monopolistic Competition.png

Hey friends please give your opinion for the problem of Economics that is given above.

View Complete Question

Related Questions in Microeconomics

Q : Total revenue when a price increases

For hamburgers the demand is relatively elastic. When the price of hamburgers increases, in that case: (i) the quantity demanded will go up. (ii) its demand will increase. (iii) total revenue will increase. (iv) total revenue will reduce.

Q : Law of Diminishing Marginal Utility

The law of diminishing marginal utility might be evidenced by the person: (i) Smoking more however enjoying it less. (ii) Purchasing a new car subsequent to getting an increase. (iii) Distributing excess food to starving children. (iv) Who studies muc

Q : Spending on rail safety ‘How be

‘How be supposed to the government decide whether to spend in additional rail safety measures?’

Q : Why are buyers and sellers forced to be

Several buyers and sellers are forced to be price-takers since: (w) vigorous competition maintains individuals from noticeably influencing the market. (x) only monopoly firms adjust quantities. (y) markets adjust slowly. (z) quantity adjustment is not

Q : Enterprises capability One of my

One of my friends can't discover the solution of this question. So he is not capable to complete his assignment. Give answer of this question. Are there any limits or constraints onto the enterprise’s capability to grow and change?

Q : Types of assertions for normative

Normative statements would contain assertions such that: (1) harsh prison terms and capital punishment reduce rates of violent crime. (2) on average, Americans are more prosperous while no single political party controls the presidency that the US Sen

Q : Problem on Asymmetric Information I

I have a problem in economics on Problem on Asymmetric Information. Please help me in the following question. Moral hazard and adverse selection are most important in: (1) The United States. (2) Perfectly competitive markets. (3) Internet markets. (4) Markets dominate

Discover Q & A

Leading Solution Library

Avail More Than 1458705 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1955641
Asked

3,689

Active Tutors

1458705

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment