In which market structure do firms exist in very large numbers, each firm produ an identical product, and there is freedom of entry and exit? A) monopoly B) oligopoly C) only perfect competition D) only monopolistic competition E) both perfect competition and monopolistic competition

In which market structure do firms exist in very large numbers, each firm produ an identical product, and there is freedom of entry and exit? A) monopoly B) oligopoly C) only perfect competition D) only monopolistic competition E) both perfect competition and monopolistic 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: Which of the following best describes a monopolistically competitive firm? Group of answer choices a…

A: A market for which they do not have perfect substitutes for one another and have multiple similar…

Q: Although the long run equilibrium of a monopolistically competitive markets involves zero economic…

A: A monopolistic competitive market structure is the one which consists of large sellers of…

Q: Firms in monopolistically competitive industries want to maximize their profits. At what level will…

A: There are many firms producing differentiated goods in monopolistic competitive market.

Q: In the market where marginal revenue equals demand and the market price is: a) monopolistic…

A: In case of perfect competition there are large number of firms selling homogeneous products. There…

Q: nopolistic Competition has ect] v, it is [Select ] to enter the mar CO oducers in a monopolistic…

A: Monopolistic competition is a market form in which there are large number of buyers and sellers…

Q: Monopolistically competitive firms in a market face the following demand and costs, where P is…

A: Given; Demand function; Q=200N-P P=200N-QTotal Cost; TC=8+Q2

Q: In monopolistic competition, firms may differentiate their products in many ways expect on the basis…

A: Product differentiation is a marketing technique for attract the customers by distinguishing the…

Q: In the long run equilibrium, which of the following will be correct for both perfectly competitive…

A: Perfect competition is a market structure in which there is a large number of buyers and sellers.…

Q: How does the model of monopolistic competition studied in lectures differ from perfect competition?…

A: Monopolistic competition is a type of market structure in which many firms compete by selling…

Q: A gas station is an example of a monopolistic competition monopoly perfect competition Oc O d…

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

Q: Because this market is a monopolistically competitive market, you can tell that it is in long-run…

A: A monopolistically competitive firm produces at the intersection of MR and MC curves. Hence, the…

Q: which situation at the following, _______ is the market dominated by only one seller/company?…

A: Types of market structures Perfect Competiton Monopolistic Competition Oligopoly Monopoly The…

Q: What are the Characteristics of a Monopolistic Competition Market? What are the Characteristics of…

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

Q: If there are many sellers,which kind of market is that? a)Oligapoly b)Monopolistic competition…

A: There are different types of market structures in an economy: 1) Monopoly 2) Monopolistic…

Q: An industry said to be characterized by monopolistic competition is the apparel industry. Suppose…

A: A monopolistic industry is one in which a large number of businesses compete for the same (but not…

Q: Describe how an oligopolist is more likely to earn a profit in the long run compared to…

A: A small number of companies who are conscious of their interdependence in terms of pricing and…

Q: 4. Is monopolistic competition efficient? Suppose that a firm produces wooden train engines in a…

A: When there are numerous companies selling similar but distinct products in a given market,…

Q: Which of the following is not true? O Monopolistic competition and perfect competitive markets do…

A: Answer - Monopoly :- Monopoly is a market where one firm has capacity to influence price levels as…

Q: Which of the following markets would have the least amount of concentrated power? Oligopolistic…

A: Market concentration is a measure that indicates the decision making power that small firms have in…

Q: Are monopolistically competitive firms likely to earn economic profits in the long run? Are…

A: Monopolistic competition is a market structure where large number of sellers exist in the market and…

Q: Explain the role of advertising in monopolistic competition. Describe how advertising by all firms…

A: Industrial economics is the study and appraisal of business financial issues utilizing abstract…

Q: Assume the following demand and cost function of a monopolistically competitive firm: P = 100 −…

A: Answer - Thank you for submitting the question. But, we are authorized to solve only 3 sub parts.…

Q: Suppose that a firm produces wooden train engines in a monopolistically competitive market. The…

A: A monopolistically competitive firm produces at the intersection of MR and MC curves. Hence, the…

Q: Which of the following market structures is characterized by a large number of firms, identical…

A: People gather in a place to purchase and sell and exchange goods and services. An economic system…

Q: Define monopolistic competitio. What characteristics characterise monopolistic competition

A: Market structure refers to how markets are differentiated and categorized based on the intensity and…

Q: Which of the following is NOT a characteristic of monopolistic competition? A)product…

A: Monopolistic competition describes a market in which a large number of companies compete for the…

Q: Discuss to what extent you agree with the following statements. Monopolistically competitive…

A: A monopolistic market is a form of imperfectly competitive markets so that multiple suppliers…

Q: Suppose that a firm produces polo shirts in a monopolistically competitive market. The following…

A: Monopoly refers to the market with only one seller of a particular product against numerous buyers.…

Q: Identify a monopoly, oligopoly, and monopolistically competitive firm. Explain your reasoning to the…

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

Q: A market where there are only a few sellers is known as: monopolistic. O oligopolistic.…

A: The question asks for the type of market structure characterized by a few sellers.

Q: A firm's influence over the price of the good produced in monopoly, oligopoly, monopolistic…

A: The monopoly has an impact on the pricing of commodities. A monopoly's price is the market price,…

Q: Suppose that a firm produces wooden train engines in a monopolistically competitive market. The…

A: In monopolistic competitive market there are a large number of firms in the market selling…

Q: the long run, firms in monopolistic competition make zero economic profit because a) firms are free…

A: Economics refers to the study of scarcity and its implications for the use of resources, production…

Q: How do perfectly competitive firms, monopolists, monopolistically competitive firms, and cartels…

A: Basics:- Profit maximization condition in all the market types:- Marginal Revenue = Marginal Cost…

Q: In the monopolistically competitive market, we expect the firms to avoid changing the price because…

A: There are numerous sellers offering unique products to a sizable consumer base in a monopolistic…

Q: For market failure unit (market power). In the long run graph for monopolistic competition, firms…

A: In the monopolistic market structure, every firm produces differentiated goods and services which is…

Q: What gives firms market power in an industry characterized by Monopolistic Competition?

A: Monopolistically competitive firms have one trademark that resembles an imposing business model (a…

Q: If a manufacturer of road bikes operates is a monopolistically competitive market, what does it mean…

A: A monopolistically competitive a market with imperfect competition where there are many buyers and…

Q: Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price…

A: Marginal revenue is a central concept in microeconomics that describes the additional total revenue…

Q: In long run equilibrium, economic profits tend to zero in a perfectly competitive market and also in…

A: In a competitive market there are large number of firms selling identical products whereas under…

Question

In which market structure do firms exist in very large numbers, each firm produces
an identical product, and there is freedom of entry and exit?
A) monopoly
B) oligopoly
C) only perfect competition
D) only monopolistic competition
E) both perfect competition and monopolistic competition

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

VIEW

Step 2

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

Is monopolistic competition efficient and socially desirable for the welfare of the economy
WHAT IS THE DIFFERENCE BETWEEN MONOPOLY AND OLIGOPOLY? PROVIDE EXAMPLES. WHAT IS A MONOPOLISTIC COMPETITION? PROVIDE EXAMPLE. WHAT IS A PERFECT COMPETITION? PROVIDE EXAMPLE SITUATIONS
What does it mean in a monopolistically competitive market, when the rule for maximizing profit is to set MR = MC? Group of answer choices Price is equal to marginal revenue. Price is equal to marginal cost. Price is lower than marginal revenue. Price is higher than marginal revenue.
Price Price @ (c) MA MC MR ATC Quantity MC ATC D Quantity Price Price (b) MR 6 MC D Quantity MC ATC ATC D Quantity छे 110
Please consider firms in the following types of markets: Monopolistic Competition Oligopoly Pure Competition Pure Monopoly Check All That Apply The following questions will ask you to check all of the market types that has each characteristic. There may be only one market type or there may be more than one market type for each characteristic. Price is equal to marginal revenue Monopolistic Competition Oligopoly Pure Monopoly Pure Competition Has high barriers to entry Monopolistic Competition Pure Competition Pure Monopoly Oligopoly Charges the lowest price Pure Monopoly Pure Competition Monopolistic Competition Oligopoly Produces the lowest quantity Monopolistic Competition Pure Monopoly Pure Competition Oligopoly Achieves allocative efficiency in the long run equilibrium Monopolistic Competition Pure Competition Oligopoly Pure Monopoly O O O O
Suppose that a company operates in the monopolistically competitive market for denim jackets. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. ? 100 PRICE (Dollars per jacket) 8 20 60 50 X ATC 20 MC MR 2 2 2 2 10 0 0 30 40 50 60 70 QUANTITY (Thousands of jackets) 10 20 80 Demand 90 100 Mon Comp Outcome Min Unit Cost
Suppose that a firm produces wooden train engines in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve: Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm, Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost.
Which of these businesses are in monopolistic competition? Two clothing shops, one selling women clothing and the other selling kids clothing Two agricultural producers, each selling a variety of kinds of citrus fruit Two pet stores, one of which sells dog products and the other of which sells bird products Two phone providers, each offering benefits to customers who switch to its service
Which of the following statements is true about the difference between monopoly and monopolistic competition? a.Monopolies always earn positive profits b.Monopolistically competitive firms have no barriers to entry or exit
In the model of monopolistic competition, an increase in industry output will cause individual firms' demand curves to become ________, which will ________ demand for higher-priced goods and ________ demand for lower-priced goods.
Provide an example of an industry that is monopolistically competitive. Regarding average total cost at the profit maximizing output, what is the difference between perfect competition and monopolistic competition ?
What does it mean in a monopolistically competitive market, when the rule for maximizing profit is to set MR = MC? Group of answer choices Price is equal to marginal revenue. Price is equal to marginal cost. Price is lower than marginal revenue. Price is higher than marginal revenue.