An industry comprised of four firms, each with about 25 percent of the total market for a product, is an example of O A. monopolistic competition O B. oligopoly O C. pure monopoly O D. pure competition

An industry comprised of four firms, each with about 25 percent of the total market for a product, is an example of O A. monopolistic competition O B. oligopoly O C. pure monopoly O D. pure competition

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The figure to the right shows the average cost of production (AC) for a cable company that is a…

A: A monopoly market is defined as the output produced by solely one market. The output price is…

Q: What happens in the long run in monopoly and monopolistic competition? Barriers to entry allow…

A: Monopoly is a form of imperfect competition. There is one firm. The number of consumers is high.…

Q: ly competitive industry is characterize ing products that are similar but not identi ing products…

A: Market refers to a place where goods & services are bought & sold. Here the goods are sold…

Q: Monopolistic competition is a type of O price discrimination. O advertising strategy. O market…

A: In case of monopolistic competition, firms use product differentiation to sell goods. There are no…

Q: Which of the following will always be true for both single-price monopoly and monopolistic…

A: Monopoly and monopolistic competition are equal when it's to price relation with the marginal…

Q: There are thousands of electric companies in the country, while in a particular city there is only…

A: In perfect competitive market, there are large number of firms selling identical goods. In…

Q: Although both perfectly competitive and monopolistically competitive firms earn normal profi O A.…

A: The perfectly competitive market is characterized by the presence of many sellers and buyers. firms…

Q: Refer to the figure at right. Two firms operating in the same market must choose between a collude…

A: Game theory is concerned with the choice of an optimal strategy in conflict situations. In game…

Q: Suppose the firm or firms in the market for Good A face a downward-sloping demand curve, maximize…

A: When the firms in the market for Good A face a downward sloping demand curve , maximize profit by…

Q: The prisoners' dilemma is O an example of a duopoly game. an example of the monopolist charging high…

A: The prisoners' dilemma is a classic example in game theory that illustrates the challenges of…

Q: In the long run, a monopolistically competitive firm will A. produce where p> ATC. B. produce where…

A: A monopolistic competitive market it is a structure where many industries firms and companies are…

Q: What is an example of a firm that operates in an oligopoly? The firms that produce _ operate in…

A: Oligopoly is the market structure where a few firms have large market shares. There is no limit for…

Q: If a firm sells its output on a market characterized by a single seller and many buyers of a…

A: Market structure: It is the division of the market depending on the competition, demand, and supply…

Q: The graph shows the demand curve for cars in 2017. Suppose that the least-possible cost of producing…

A: In the given solution, it was mentioned that the efficient and the least possible cost is 10,000.…

Q: Macmillan Learning In monopolistic competition, advertising has been introduced as a new method to…

A: A market with very minimal competition is referred to as a monopolistic market. It does not imply a…

Q: In the model of monopolistic competition, compared to a firm with higher productivity, a firm with…

A: Monopolistic competition: - monopolistic market structure is the structure in which there is a large…

Q: 9 When entry ocCurs in a monopolistically competitive industry, which of the following occurs? A The…

A: The market is a location where the transaction of services and commodities takes place.

Q: If the four largest firms in a market produce 88 percent of total industry output, the market is O a…

A: Monopoly is defined as a market structure where there is single seller and larger number of buyers…

Q: The government may regulate natural monopolies because O A. the government needs to ensure…

A: A monopoly is a market structure in which there is only one seller in the market. A natural…

Question

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Types of Markets

VIEW

Step 2: Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

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

Intel and Advanced Micro Devices make most of the chips that power a PC. What makes the market for PC chips a duopoly? The PC chip market is a duopoly if O A. at the efficient scale, two firms can satisfy the market demand OB. each firm can divide its consumers into two categories-business consumers and household consumers O C. the two firms can charge different prices for the same quality of PC chip O D. the market produces two goods Assume that Intel and Advanced Micro Devices have identical costs. The graph shows the market demand curve. Draw the average total cost curve of one firm if the chip market produces 800 chips an hour and other firms are prevented from entering. Label the curve. Draw a point on the average total cost curve at the efficient scale. 110- 100- 90- 80+ 70- 60+ 50- 40- 30- 20+ 10- 0- Price (dollars per chip) 0 $800 200 400 800 600 Quantity (chips per hour) >>> Draw only the objects specified in the question. D 1000 Q Q 1200
Some monopolies are regulated by setting a price that a monopolist cannot exceed over a specified period of time. This is called: O antitrust laws O cost-plus regulation O price cap regulation O regulatory capture
Exhibit 10.5 Price 3.25 3.00 2.50 0 700 1,000 MC MR ATC D = AR Quantity Exhibit 10.5 shows the demand, marginal revenue, and cost curves for a monopolistically competitive firm. At the profit-maximizing (or loss-minimizing) output and price, the firm would O a. have to expand to stay in business in the long run. O b. be better off shutting down, since total revenue does not cover fixed costs. O c. be experiencing an economic loss. O d. be earning an economic profit. O e. be earning zero economic profit.
What had Alcoa done that made the judge find it guilty of being a monopoly? a. Alcoa had used predatory pricing to keep new firms out of its marketb. Alcoa had engaged in price fixingc. Alcoa had never tried to monopolize the aluminum market, but its policy of building capacity to meet future demand had the effect of giving it a large market share that made it a de facto monopolyd. Alcoa had used tying contracts to drive rivals out of the markete. Alcoa had used price discrimination to acquire a monopoly Following its near bankruptcy in 1922, General Motors pioneered the decentralized management structure in which the firm was reorganized into semi-independent profit centers. Vice-presidents were appointed to manage these profit centers and were told that their bonuses would depend on the profitability of their division. This reorganization was designed to a. reduce management costsb. better capture economies of scalec. create a ratchet effect that would drive managers to perform…
Econ 1
The theory of monopolistic competition explains economic behaviour in industries in which there are O A. a few small firms, each with some market power. O B. many small firms, each with some market power. O C. many small firms, each with no market power. O D. a few small firms, each with no market power. O E. None of the above.
Fill in the blank and answer in 5-6 sentence only
The firm in the figure below is in monopolistic competition. It will set a price equal to MC ATC MR D 0 10 20 30 40 50 60 Quantity (units per day) O a. $1. O b. $3. O c. more than $3. O d. $2. Price and costs (dollars per unit)
Which of the following market types has all firms selling products so identical that buyers do not care from which firm they buy? Select one: O a. monopolistic competition O b. oligopoly O c. monopoly O d. perfect competition
In monopolistic competition equilibrium with symmetric fırms, firms enter until each firm earns O zero economic profits because price equals average cot. O positive monopoly profits because it sells a differentiated product. O positive economic profits only if it engages in international trade O negative economic profits because of fixed costs.
What did Harvard economist Edward Chamberlin say about the observation that a monopolistically competitive firm's average cost of production exceeds its minimum average total cost? Select one: O a. Chamberlin argued that this belief is incorrect. In his view, monopolistically competitive firms do not produce at a cost above their minimum average total costs. O b. Chamberlin argued that these higher costs represent the wastefulness of this market structure. O c. In Chamberlin's view, this is evidence that monopolistic competition uses society's resources inefficiently and in a fashion that merits government intervention. O d. According to Chamberlin, this cost difference represents the value consumers place on variety and having more choice.
QUESTION 4 If a monopolistically competitive market experiences economic loss in the short run then O a. some of the new firms will enter the market in the long-run, O b. some of the existing firms will exit the market in the long-run. O c. all the firms will stay in the long-run. O d. some firms will stay and some firms will leave the market in the long-run. QUESTION 5 One similarity between a monopoly firm and a monopolistically competitive firm is O both have downward sloping demand curve which is above the marginal revenue curve. O both have downward sloping demand curve which is below the marginal revenue curve. O that the demand curve for both are horizontal. O that the demand curve for both are vertical. QUESTION 6 A positive economic profits in the short-run of a monopolistically competitive market would O a. cause the market to become perfectly competitive in the long-run. O b. make no difference as no firms entering or exiting in the long-run. O. make some existing firms to…