Advertising by firms in monopolistic competition O a. does not occur. O b. wastes resources because the entry of rivals forces firms to be price takers. O c. can persuade customers that product differentiation exists. O d. provides consumers with no useful information. Which of the following is NOT an example of price discrimination? O a. student discounts at the supermarket O b. airlines charging lower prices to travelers who travel on Sunday night O c. discounted meals for children at Burger King O d. Christmas sales The law of diminishing returns only applies in cases where: O a. the price of extra units of a factor is increasing. O b. there is increasing scarcity of factors of production. O c. there is at least one fixed factor of production. O d. capital is a variable input.

Advertising by firms in monopolistic competition O a. does not occur. O b. wastes resources because the entry of rivals forces firms to be price takers. O c. can persuade customers that product differentiation exists. O d. provides consumers with no useful information. Which of the following is NOT an example of price discrimination? O a. student discounts at the supermarket O b. airlines charging lower prices to travelers who travel on Sunday night O c. discounted meals for children at Burger King O d. Christmas sales The law of diminishing returns only applies in cases where: O a. the price of extra units of a factor is increasing. O b. there is increasing scarcity of factors of production. O c. there is at least one fixed factor of production. O d. capital is a variable input.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consider the diagram below depicting the revenue and cost conditions faced by a monopolistically competitive firm, and then answer the following questions. MC D ATC F ..... E Demand G MR Quantity Suppose the firm produces at the break-even price. a. The resulting price-quantity combination would be illustrated by point (Click to select) ▼ b. At this point, the firm experiences O a short-run loss. O a normal profit. O an economic profit. Price and costs
Air Canada and WestJet recently cut their prices for flights between Toronto and Edmonton to $199. In response, Porter Airlines cut its price from $239 to $199 for flights between Toronto and Edmonton in order to remain competitive. Based on this example, what degree of competition exists in the airline industry? Select one: O a. monopolistic competition O b. oligopoly O C. perfect competition O d. not enough information to answer O e. Monopoly B
3 Of 16 a. A monopolistic competitor, much like a firm in perfect b. Advertising can play a role as an indirect signal of competition, sells its product at a point product quality to customers. where the price is equal to the marginal cost. true false true O false c. Monopolistically competitive industries are more likely d. In the long run, monopolistic competitors make a to make use of advertising to create products that catch similar amount of profit to monopolists, since, in both on in mainstream popularity than industries in perfect cases, the firm's demand curves are downward sloping, competition. and at the profit maximizing point, the marginal cost is true false equal to the marginal revenue. O true O false e. In the short term, a monopolistic competitor will make a profit if the demand curve is above the average total cost curve at some point. true false
Which of the following statements about brand names is true? O It is always rational to prefer brand names over generic substitutes. O Brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. O Brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. Read the following example and determine whether it illustrates a common critique or defense of advertising. Lorenzo sees a commercial for a Brand X clothing company that depicts the wearers of the clothes out having a good time with friends. Although he doesn't particularly need new clothes, the commercial prompts him to buy Brand X t-shirt. This illustrates a common of advertising.
solve the mcq
A monopolistically competitive firm maximizes profits when it اختر احد الخيارات a. produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal cost b. produces the quantity at which marginal cost equals marginal revenue and uses the demand curve to determine the market price o .c. produces the quantity at which marginal cost equals the market price d. produces the quantity at which marginal cost equals marginal revenue and sets the price equal to the marginal revenue
3. A monopolistically competitive firm sells boots and has the following in the short run: Demand: P = 80 – 0.5Q %3D MR: MR = 80 – Q TC = 1.5Q? + 40 1.5Q + (40/Q) TC: АТC: MC: MC = 3Q %3D Find the firm's profit maximizing quantity and price. Find the firm's profit or loss. Show some work here: Quantity = Price = Profit or Loss = (circle one, and write the number)
Need help with both
If a firm is practicing third−degree price discrimination and is charging a price of $8 per unit to consumers in Group A and a price of $10 to consumers in Group B, which of the following is true? A. Group A consumers have a lower price elasticity than Group B consumers. B. Group B consumers have a greater price elasticity than Group A consumers. C. Group A consumers have a greater price elasticity than Group B consumers. D. Group A consumers are less responsive to price changes than Group B consumers.
33 and 60
Now pretend Mincer’s has a monopoly on UConn shirts. Draw a graph where Mincer’s is originally making 0 economic profits (D=ATC at profit-maximizing quantity), and then this shift in tastes occurs. Draw the box that represents the new profits/losses in this market, or explain why they will still make 0 profit.
A. To maximize profits, every firm should operate at theminimum point of its average total cost curves. Is thisstatement true or false? Explain.B. The demand for a monopolistically competitive firm'sproduct is generally more elastic than that for amonopolist's product? Is this statement true or false?Explain. PLEASE ANSWER A AND B