Low barriers to entry lead to market entry when profits exist. Categories makes unique goods without close substitutes As Both Monopolies and MCs Drag and drop here does not produce at minimum average total cost in the long run charges a price above marginal cost of production Only Monopolistic Comp. Drag and drop here. has zero economic profit in the long run has high barriers to entry/exit Only Monopolies Drag and drop here

Low barriers to entry lead to market entry when profits exist. Categories makes unique goods without close substitutes As Both Monopolies and MCs Drag and drop here does not produce at minimum average total cost in the long run charges a price above marginal cost of production Only Monopolistic Comp. Drag and drop here. has zero economic profit in the long run has high barriers to entry/exit Only Monopolies Drag and drop here

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

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Question

Which of the following descriptions fit both monopolies and monopolistic competitors, and which descriptions only fit one of these?

Low barriers to
entry lead to
market entry
when profits
exist.
Categories
makes unique
goods without
close substitutes
As
Both Monopolies and MCs
Drag and drop here
does not produce
at minimum
average total
cost in the long
run
charges a price
above marginal
cost of
production
Only Monopolistic Comp.
Drag and drop here
has zero
economic profit
in the long run
has high barriers
to entry/exit
Only Monopolies
Drag and drop here

Definition Definition Market structure in which a single company dominates the entire industry. In a monopoly market, there are no close substitutes for the goods and services offered by the monopoly.

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