Answered: 22. Compare the characteristics of…

22. Compare the characteristics of Monopolistic competition with Oligopoly and show profit maximization for both market.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 1SQ

See similar textbooks

Related questions

Q: Which of the following does NOT fall into the degrees of competition continuum? A) Perfect…

A: Market structures modelled as a continuum are the four general market structures: perfect…

Q: 6. What does the income elasticity of demand measure? a) The responsiveness of quantity demanded to…

A: [Note: Since you have posted multiple questions, we will provide the solution only to the first…

Q: Use the dropdown to match the business with the appropriate market structure. Wheat Farmers…

A: An oligopoly refers to a market in which there are a few numbers of firms, hence the firms have some…

Q: Compare and contrast the potential for a perfectly competitive firm and a monopolistically…

A: This can be described as a form of market in which no single producer or consumer has the power to…

Q: the actions of firms interdependent in an oligopoly market but not in a monopolistically competitive…

A: Producers produce and consumers consume in the market. A producers' production depends on the demand…

Q: 18. Horizontal Integration is most likely to lead to an industry that is: monopolistically…

A: Integration refers to the merge of big or more firms. Horizontal integration refers to the merge of…

Q: 5. Compare the demand curves for a perfectly competitive firm, monopolly firm and monopolistic…

A: In perfect competition demand curve is horizontal and AR=MR. In monopoly and monopolistic…

Q: 18. Refer to Figure 18-1. If the shop charges $150 per repair, then what is the value of the…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Compare the monopolistically competitive firms' demand curve to those of a perfect competitor and a…

A: Monopolistically competitive market refers to a structure in which many sellers sell products that…

Q: Why do firms operating in a monopolistically competitive industry have the power to raise the prices…

A: "In economics, there are mainly four types of market structures and each have their own features…

Q: 1.What are the main features of an oligopolistic market?

A: Oligopoly is a type of market structure.

Q: Describe and explain how long-run equilibrium is formed in the structure of the monopolistic…

A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…

Q: 3.Discuss the differences and similarities between a monopolistically competitive market and an…

A: Monopolistically Competitive Market : Monopolistic competition is a blend of perfect competition and…

Q: Explain what market inefficiencies derive from monopolies and monopolistic competition. Use examples…

A: Disclaimer Since you have asked multiple questions, we will solve the first one for you. If you want…

Q: When monopolistically competitive firms advertise they hope to _________ and __________. When…

A: Monopolistic competition is a market structure with large number of sellers selling differentiated…

Q: 56.Assume that an oligopoly's four enterprises are forming a pact to cooperate. How might the ease…

A: Oligopoly: It is a market structure where exist only a few numbers of larger firms selling…

Q: market structure in which each firm has a monopoly over the product it makes, but many other firms…

A: Market structure means the structure which defines how industries of the market are classified based…

Q: 4. Explain why firms in perfect competitive markets have no incentive to advertise for their…

A: Perfectly competitive markets are market structures characterized by the presence of numerous buyers…

Q: Advertisement and Commercials campaigns eYl, lcall ciles are widely used in the following markets: O…

A: Firms indulge in advertisements to make more and more people aware of the unique and differentiated…

Q: 32. A market in which there are only a few firms and each is able to influence the market price is…

A: In economics market structure basically means the number of firms producing homogeneous products…

Q: 1. Suppose all firms in a monopolistically competitive industry were merged into one large firm.…

A: Monopolistically competitive industry Monopolistic competition is an imperfect kind of competition…

Q: onsider the markets for pizza delivery services in Vienna, hotel accommodation in Krems and train…

A: Market structures are categorized based on the number of firms in the market, the type of product…

Q: Point out the basic characteristics that define monopolistic competition and indicate the…

A: A competitive market is a market structure where there are many buyers and sellers, and no…

Q: Consider the monopolistically competitive market structure, which has some features of a competitive…

A: Monopolistic Competitive market:- Monopolistic Competition is the form of market in which there are…

Q: Which of the following statements are true about BOTH monopolistic competition AND monopolies? Check…

A: The profit maximising level of output is at a point where the marginal revenue equals the marginal…

Q: 4 If oligopolies compete hard against each other, which of the following will likely occur? A They…

A: When the oligopolies firm is competing for each other very hard then act in the market like perfect…

Q: How do Monopolistic Competition and Perfect Competition differ in terms of efficient use of…

A: Monopolistic competition and perfect competition are two types of market systems that contradict in…

Q: 6. TRUE OR FALSE AND WHY? A monopolistic competitor who maximizes profits will always charge a price…

A: Meaning of Market: Market refers to a structure where buyers and sellers interact to complete…

Q: Exercise A.1 . Compare the quantity and price of an oligopoly with those of a monopoly and those…

A: Monopoly refers to a market in which there is only one single seller sells a product that has no…

Q: What do monopolistic competitors rely on to attract buyers?

A: Monopolistic competition refers to a market structure in which a large number of merchants compete…

Q: An oligopoly is a market structure in which only a few sellers produce similar or identical…

A: In economics, the "structure" of the market is described as different industries that are…

Question

100%

Q2. Compare the characteristics of Monopolistic competition with Oligopoly and show profit
maximization for both market.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1- Introduction

VIEW

Step 2- Explanation

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

In the long-run, the amount of economic profits: for firms under monopolistic competition tend to diminish so that no more than normal profits can be earned, because entry barriers are fairly low, unless they can successfully and continuously differentiate their product or service. for (unregulated) monopoly firms always tends downward toward zero because consumers easily find close substitute goods or services. for firms under perfect competition will tend to get ever higher because free entry of new firms adds to the profits of the existing firms in the market. O for firms under perfect competition will tend to get higher over time because small-sized firms are constantly investing large sums of money in the latest production technologies and in innovations through research and development (R&D). MacBook Pro G Search or type URL 24 5 7
Suppose the figure to the right represents the market for a particular brand of shampoo, such as L'Oreal, Lancome, or Maybelline. Assume the market is monopolistically competitive and is in long-run equilibrium. How much excess capacity does the firm have? The monopolistically competitive firm's excess capacity is thousand bottles of shampoo. (Enter your response as an integer.) C Price and cost (per bottle) 2.00- Q 1.80- MC Q ATC 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20- 0.00+ 0 2 MR D 4 6 8 10 12 14 16 18 20 Quantity (shampoo bottles in thousands)
Are monopolistically competitive firms likely to earn economic profits in the long run? Are oligopoly firms likely to earn economic profits in the long run? Why (not)?
Describe the characteristics of a firm in a monopolistically competitive industry and that of an oligopolistic industry. Explaining how they are different from firms in a perfectly competitive industry or a monopoly.
Give real life example of a firm for each the 4 types of market structures - perfectly competitive, monopolistically competitive, oligopoly, and monopolistic competition.
Compare the characteristics of monopolistic competition (MC) and oligopoly (O) based on the following: Questions: 1. Barriers to entry. 2. Profit in the long-run. 3. Shape of demand curve. 4. The relationship between P and MR (P is equal, below, or above MR). 5. The ATC point at profit maximising output (minimum ATC or not minimum ATC). Clearly label each of your answers in the text box below.
One significant difference between oligopoly and monopolistic competition is that advertising is only noted in monopolistic competition because
In which type of competition (pure, monopolistic, oligopoly or monopoly) would each of the following businesses be likely to engage? Why? Explain your answers. Turkish airlines Small CrossFit gym A large farm whose major crop is wheat Apple Corporation Your local Starbucks
Choose a market for a good that you use often in real life and explain whether the market is perfect competition, monopoly, monopolistic competition, or oligopoly using the definition of the four different market structures. Please provide explanations
explain what is the difference between firms in monopolistic competition and firms in oligopoly. What does this difference mean for prices and quantities and for economic profit?
Why do firms in monopolistic competition have market power? Group of answer choices Firms in monopolistic compeitition have few barriers to entry and exit. Firms in monopolistic competition sell differentiated goods, and consumers have preferences for some firms’ goods over those of others. There are many firms in monopolistically competitive markets, and each is small relative to the overall market. This is a common misconception. They don’t.
“Competition in quality and service may be just as effective as price competition in giving buyers more for their money.” Do you agree? Why? Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.