A Monopolistic Competitor Has Fixed Costs of $100 and a

question 44

Essay

A monopolistic competitor has fixed costs of $100 and a
constant $1 marginal cost of production.
A) Will this firm earn short­run monopoly profits if it produces
and sells 300 units at a price of $2.00 each?
B) What can we expect to happen to this monopolistic
competitor in the long run?

• A) Will this firm earn short­run monopoly profits if it produces
• and sells 300 units at a price of $2.00 each?
• B) What can we expect to happen to this monopolistic
• competitor in the long run?

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Definitions:

Nonverbal Behaviors

Communication without words, including body language, facial expressions, gestures, and other physical cues.

Media Richness

Media richness theory posits that the effectiveness of communication varies with the richness of the medium used, rating from face-to-face (richest) to numerical documents (least rich).

Telephone

A communication device that transmits and receives sound, typically voices, over long distances using wire or radio technology.

E-mail

A digital method of sending and receiving messages over the internet between individuals or groups.