On April 1, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Elec
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Answer:
Answer for the question:
In this question, assume that all variables other than price and quantity are held constant. At Betty's Burgers, the hamburgers have a price elasticity of demand-: 305 and Betty has increased sales by 85.00%.
Betty must have changed her price by
Due to the price change, Betty's total revenue will
Patty's Putts increased the price of a round of miniature golf by 76,0%, Patty has calculated her price elasticity of demand at 0.57. She can expect the number of golfers to
Patty can expect the number of golfers to change by
Patty can expect her total revenue to
is given in the attachment.
Explanation:
Answer:
a. marginal revenue is equal to marginal cost.
Explanation:
Monopolistic competition can be defined as an imperfect competition where many producers or organizations sell differentiated products that are not perfect substitutes. Examples of firms or organizations engaging in a monopolistic competition are restaurants, shoes, clothing lines etc.
Generally, a monopolistic competitive market is characterized by the presence of large numbers of firm (producers) and a very low entry barrier.
Hence, in a monopolistic competition, firms have a degree of control over price, make independent decisions and can freely enter or exit the market in the long-run. Therefore, these firms combine elements of both monopoly and competition.
When a monopolistically competitive firm is in long-run equilibrium marginal revenue is equal to marginal cost . This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).
<em>Thus, a monopolistic competitive producer has a highly elastic demand curve and firms would eventually break even in the long-run. </em>