I. Write the letter corresponding to your answer on the space provided for.1.Whatisthe characteristic of perfectcompetition? A. having different products.B. having free entry and exit in the market.C. advertising the product.D. having the power to dictate price._2. Which of the following is the best example of a homogenous product?A. soft drinksB. shoesC. vegetableD. candy3. Which of the following structures has limited entry and exit in the market?A. perfect competitionB. monopolyC. oligopolyD. monopolistic competition_4. Which of the following structures can dictate price?A. perfect competitionB. monopolyC. oligopolyD. monopolistic competition5.Which of the following structures has freedom to enter and exit themarket?A. perfect competitionB. monopolyC. oligopolyD. monopolistic competition ASSESSMENTAnswer the following questions.1. Why is tax an issue to the entrepreneurs?2. As an entrepreneur, why do you need to understand inflation?3. How can minimum wage affect the productivity of a worker?

1 - B perfect competition has free entry and exit of firms 2 - C Vegetables are homogenous as it is…

Answered: I. Write the letter corresponding to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I need help with number 1, 2, 3, 4 1. Which of the following advertisements provides information to the consumer? a. “CarbChips have half the carbohydrates of regular potato chips”. b. “The Taj Mahal restaurant is like a trip to India”. c. “Brain-power Books – just think it!” d. “Avion Airlines wants to take you higher”. 2. Firms in an Oligopoly produce a quantity of output that is less than the level produced by a perfectly competitive market and charge a price that is greater than the perfectly competitive price. a. True b. False 3. Which of the following is true of the model of monopolistic competition? a. Barriers to entry enable firms to enjoy positive profits in the long run. b. The number of firms declines over time as a result of economies of scale. c. The monopolistically competitive firms enjoy a greater market power than a monopolist. d. Firms tend to locate near each other in order to minimize total travel costs for consumers.…
Local gas stations in cities are an example of: A. monopoly firms B. monopolistic components C. oligopoly firms D. perfectly competitive E. monopolistic competition
If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect: A. competing firms to enter the market and sell similar products. B. profits to increase. C. the demand curve for firms in the market to shift to the right. D. entry barriers to prevent competing firms from entering this market.
Match each concept with its corresponding definition:- Pure and perfect competition. Imperfect competition. The monopoly. The oligopoly. Monopolistic competition. Barriers to entry into an industry. A. All restrictions that do not allow the company to produce a certain type of production. B. A type of market where several companies sell a standardized or differentiated product with limited ability to control prices, having high barriers to enter the market and considerable restrictions on access to the economic information. C. A type of market where many companies produce and sell standardized products, there are no barriers to entry into the industry, one has free access to economic information and none of these companies is powerful to influence (increase or decrease) the market price. D. A type of market in which there are one, several or a considerable number of companies in the industry that control the price level in a certain way; on the other hand, there are barriers to entry…
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4. Pat's Hair Designs is part of a monopolistically competitive haircut market in Berkeley. (a) At present, Pat is earning positive profits by running the haircut business. Draw a diagram illustrating Pat's profit-maximizing price and quantity of haircuts. Explain what your diagram shows, including a descritpion of what each line in your diagram represents. (b) Is the haircut market in Berkeley in long-run equilibrium? If it is, explain why. If it is not, draw a diagram illustrating Pat's profit-maximizing price and quantity of haircut in the long-run equilibrium (Assume Pat's remains in the market). Explain how the market moves from the equilibrium you drew in (a) to the one here. (In other words, explain which curves move and why.)

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