Market Structure Perfect Monopolistic Competition Characteristic Competition Oligopoly Duopoly Monopoly Number of firms Very large number Many Few Two One Barriers to entry None Low High High High Market power (control over price) Type of product None Some Substantial Substantial Substantial Standardized Differentiated Standardized or Standardized or Unique differentiated differentiated

Market Structure Perfect Monopolistic Competition Characteristic Competition Oligopoly Duopoly Monopoly Number of firms Very large number Many Few Two One Barriers to entry None Low High High High Market power (control over price) Type of product None Some Substantial Substantial Substantial Standardized Differentiated Standardized or Standardized or Unique differentiated differentiated

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 17P

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Consider a monopoly trading firm that dominates a particular market. Describe the factors that contribute to the monopoly's ability to control prices and generate profits and as such discuss its short run and long run profit situation. Use relevant diagrams to support your answer. Ans suppose more firms are interested in joining the market and over the years, the market structure is characterised by monopolistic competition. Discuss the implication on the firm’s short-run and long run profits with the use of relevant diagrams.
If one were to discuss why the term “monopolistic competition” is used, the best description would be that the industry is “monopolistic” because it
Explain the role of brands in a monopolistic competition market. How can the pricing and profits for a firm in this market structure differ from perfect competition and when will the two market types reach the same outcome? Why does that make it essential for firms to have a strong brand identity? Give an example of a product with this type of market structure and discuss (briefly) how the firms have established their brands.
Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Under which of these market classififications does each of the following most accurately fifit? (a ) a supermarket in your hometown; (b) the steel industry; (c) a Kansas wheat farm; (d) the commercial bank in which you or your family has an account; (e) the automobile industry. In each case justify your classification.
There is much evidence that large firms with considerable market power (firms such asmonopolies) may not maximize profits but may pursue quite different objectives such asgrowth or sales revenue maximization. What are the arguments put forward to defendmonopoly? Name any 5 Generally, the aim of a business is to maximize profit. Which point should a firm operateat in order to achieve maximum profit? By making use of a graph indicate clearly the pointat which a firm makes maximum profit and a point where a firm increase their output inorder to enhance profit as well as well as the points where they should reduce theirproduction if they want to enhance profit
Only two firms, Acme and Stuff Inc., sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost (so MC-ATC=$10). Price Quantity Total Revenues 10 70 65 60 55 50 45 40 28889 35 30 25 20 15 10 15 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 0 If Acme and Stuff Inc are able to collude, how much will Acme produce? 6500 12000 16500 20000 22500 24000 24500 24000 22500 20000 16500 12000 6500 0
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Fill in the missing data for this Monopolistically Competitive firm. Don't forget to answer the questions below the chart. I. Average Total Marginal Total Marginal Total Total Quantity Price Revenue Revenue Cost Cost Cost Profit 50 na na -50 1 48 75 2 46 45 37 4 31 135 25 15 32 38 7 175 253 /////// 8. 144 311 9 90 379 /////I/ 10 459 This firm's fixed costs are? Assuming no inflation, we would predict this firm's price to rise/fall/ stay the same. Explain your answer.
What is the name for a group of firms operating in an oligopoly that have a formal agreement to collude to produce the monopoly output and sell at the monopoly price? O Cartel O Collusion Trust Union O Trade Organization
What is product differentiation? What role does it play in the determination of price under monopolistic competition? Discuss. “There is no unique solution to the problem of determination of price and output under Oligopoly”. Discuss
please explian the answers to these two in deatil