Production and costs in monopolistic competition

In the short run, no profit-oriented monopolistically-competitive firm still knowingly generates any output unless: (1) an economic profit is assured. (2) total revenues are expected to equal or exceed its total variable costs. (3) the average wage rate exceeds the value of the marginal product of labor. (4) normal accounting profit can be expected. (5) consumer surpluses are generated for its customers.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Pure competitors or perfect competitors

The price makers in a purely competitive market are: (i) pure competitors or perfect competitors. (ii) producers of capital goods. (iii) pure oligopolies. (iv) monopolistic competitors. (v) pure monopolies. H

Q : Monopolistic competitive firm in normal

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 averag

Q : Value of the Marginal Product I have a

I have a problem in economics on Value of the Marginal Product. Please help me in the following question. Value of the marginal product is stated as: (1) MPP × P. (2) MPP × MR. (3) MPP × MC. (4) MPP × MRC.

Q : Production at exceeds marginal costs by

For any profit-maximizing monopolist not capable to price discriminate, production arises at an output level where is: (w) price exceeds marginal costs [P > MC]. (x) marginal revenue exceeds marginal costs [MR >

Q : Well-recognized market structure

Well-recognized market structures do not comprise: (i) monopoly. (ii) monopolistic competition. (iii) oligopoly. (iv) oligarchy. (v) pure or perfect competition. I need a good answer on the topic of Economi

Q : Perfectly Elastic Economic Rent A

A uniform resource price paid for any resource which has an aggregate supply curve which is less than perfectly elastic generates an: (1) exploitation ratio. (2) investment surcharge. (3) accounting profit. (4) economic rent. (5) acce

Q : Asymmetric information Provide the

Provide the solution of this question. The problem of asymmetric information is that: A) neither health care buyers nor providers are well-informed. B) health care providers are well-informed, but buyers are not. C) the outcomes of many complex medical procedures cannot be predicted. D) insurance co

Discover Q & A

Leading Solution Library

Avail More Than 1434520 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1957592
Asked

3,689

Active Tutors

1434520

Questions
Answered

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

Submit Assignment