Please see chart attached and respond the following questions:
a. If the owner of this video store wants to maximize profits, how many DVD's should the store rent per day and what price should be charged? explain your answer
b. Should it continue to produce in the short run? Why?
c. How much are fixed costs?
e. Is the owner likely to continue renting this number of DVD's in the long run? briefly explain
f. Determine the amount (in dollars of dead weight loss) for this monopolistic competitor© BrainMass Inc. brainmass.com October 17, 2018, 12:16 am ad1c9bdddf
To maximize profits all firms want to produce at the point where MC= MR. In monopolistic competition, the demand curve is also the marginal revenue curve. For this firm, the, MC= MR occurs at 110 DVDs. Because its price covers its variable costs, the firm should continue to produce.
To answer the other questions, you will need to see the ATC and AVC curves. I have added some where they seemed ...
Revenue maximization and dead weight loss for monopolistic competition is discussed in 284 words. The graph shows a shift in the long run supply curve.
Overview of conditions for a monopolistic market
A) What are the conditions for a perfectly competitive market?
b) What are the conditions for a monopolistic market?
c) What are the conditions for a monopolistic competitive market?
d) What are the conditions for an oligopolistic market?
e) How would you explain the differences among these market structures?
Identify which market structure your organization competes in and why you think so.
F) What are some real-life examples of monopolistically competitive, oligopoly, and monopoly markets?
Please answer these questions in your own words and five one example of each.
give the exact reference location and page if from a text or website.
Thank you and have a bless day