PLEASE ANSWER ALL QUESTIONS. 23) Which of the following is a characteristic of m

Question

PLEASE ANSWER ALL QUESTIONS.

23) Which of the following is a characteristic of monopolistic competition? A) standardized product B) many firms C) mutual interdependence D) barriers to entry 24 A product that is a close substitute but not a perfect substitute for the products of the other firms is called A) a homogeneous product. B) an efficient product. C) an inelastic product. D) a differentiated product. The figure below shows the demand curve for Nike shoes (D), and Nike's marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Answer the next three questions based on the figure 100 90 MC ATC 70 GO 50 40 MR 30 20 40 80 20 160 200 Quantity [pairs of shoes per dayl 25) Nike maximizes its profit if it sells pairs of shoes per day 26) Nike maximizes its profit if it charges per pair of shoes 27) Nike's economic profit is

Explanation / Answer

23. option B is right. there will be many producers in monopolistic market with product differentiation. every one has their own product and brand

24. option A is correct. homogeneous products are those which are similar and identical in nature

25. 120 pairs

26. $60

27. at the above price the total revenue is= 120*60= $7200

for this quantity the total cost= $50*120= $6000

economic profit= 7200-6000= $1200

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