In which market structure would you place each of the following products: monopoly, monopolistic competition, or perfect competition? Why: a. market for water and sewerage services, b. Economics, by N. Gregory Mankiw and Mark P. Taylor, c. Economics Text book, d. Restaurants in a large city, e. Tomato f. Air travel from any one airport.

In which market structure would you place each of the following products: monopoly, monopolistic competition, or perfect competition? Why: a. market for water and sewerage services, b. Economics, by N. Gregory Mankiw and Mark P. Taylor, c. Economics Text book, d. Restaurants in a large city, e. Tomato f. Air travel from any one airport.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 1P

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Question

In which market structure would you place each of the following products: monopoly,
monopolistic competition, or perfect competition? Why: a. market for water and
sewerage services, b. Economics, by N. Gregory Mankiw and Mark P. Taylor, c.
Economics Text book, d. Restaurants in a large city, e. Tomato f. Air travel from any one
airport.

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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a. b. C. d. Price panel a panel b panel c panel di Price (a) (c) MA MC MR ATC Quantity MC ATC D Quantity Price Price (b) MR (d) MC Quantity MC مما ATC Refer to Figure 3. Assume a monopolistic competitive environment: From the 4 graphs depicted, which one of them represents a short-run equilibrium that encourages the entry of other firms? ATC Quantity D
Which of the following is true regarding monopolistic competition? Ⓒa. Each firm behaves as a monopolist, but makes no profits in the long run due to competition from close substitutes b. Save your money, and only purchase the railroads and high-end properties on the board (i.e. red, yellow, green, and blue) c. There is no such thing as monopolistic competition, it is an oxymoron d. Firms behave competitively, but they make profits in the long run because there are some barriers preventing entrepreneurs from entering the market
Why is a competitive market generally better for society than a monopolistic market?
From the following graph, show the equilibriums under each scenario. Market is in equilibrium at A under competitive market. (a) Show the equilibrium under monopoly. Call this point B (b) When the demand increased in the area due to immigration, show the new competitive equilibrium, call this point C. (c) Show the new monopolistic equilibrium with increased demand and call this point D.
A good example of a monopolistically competitive market would be? Group of answer choices 1-The production of tennis balls where 4 firms dominate – Wilson, Dunlap, Spalding, and Penn 2-The 4 Companies that control over 80% of the US beef market: Tyson, Cargil, Swift, and National Beef Packing Company 3-Gas stations in Texas 4-Airlines
What is the edge of perfect competition to monopolistic competition? What is way more better? Explain
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Using only things found in an average home, please provide one example of something from each kind of market, and briefly explain why this thing is in that particular market. Try to be creative. You will need an example of something from a: Perfectly competitive market Imperfectly competitive market (monopolistically competition or oligopoly), and Monopoly market
The major difference between monopolistic competition and monopoly is a. how the quantity of output is determined. b. only a monopoly can earn an abnormal profit in the long run. c. monopoly is a price taker, and a firm in monopolistic competition is a price maker d. only firms in monopolistic competition are protected by barriers to entry
Suppose, Pfizer Company is the only company allowed by the Sultanate government to sell COVID vaccine in Oman. According to you, what type of market Pfizer Company is having in Oman? a. Monopoly market b. Monopolistic market c. Competitive market d. Oligopoly market
what market inefficiencies derive from monopolies and monopolistic competition?
Monopolistic Competition On the next few slides be sure to answer the following questions. What is monopolistic competition? Give an example of monopolistic competition. How many sellers are competing? What are the barriers to entry? Do the sellers have control over their price? Why or why not? Are the products different? Give an example of an advertisement that demonstrates companies competing based on product differentiation.