One key feature of a monopolistically competitive market is a. that there are a lot of firms who sell similar goods but not identical. O b. that there are a few firms who sells the goods which are not identical. c. that there are a lot of firms selling identical goods. d. that there are a few firms who sells the goods which are different.
Q: The largest firms account for the bulk of the industry's output. Select one: a. Monopoly O b.…
A: Four different types of market structures in an economy are: perfect competition, monopoly,…
Q: In which of the following situations would Maria's Doughnut Shop have the MOST market power? Select…
A: Market power refers to a firm's decision-making ability and changing the market price level above…
Q: D MR A. New firms are likely to enter the market decreasing prices and profits for all firms. B. New…
A: In the monopolistic market structure there exists a large number of firms and each firm in this…
Q: Compared to the long run perfectly competitive market outcome, the long run monopolistic competition…
A: Disclaimer: Since you asked multiple question, we are solving first 1 as pr guidelines. But if you…
Q: Which of the following is a characteristic of monopolistic competition? few sellers homogeneous…
A: There are different market structures, oligopoly, monopoly, monopolistic competition and perfect…
Q: The following graph characterizes a firm in a monopolistically competitive market. ATC 32 24 8 MC…
A: Justification for Option C (Short Run Position):The given information does not specify whether the…
Q: F3
A: The type of market here in which batteries are produced is an Oligopoly market. The share of one…
Q: In a monopolistically competitive market, A strategic interactions among the firms are very…
A: A market system with several enterprises operating and each selling somewhat different items is…
Q: In long-run, all firms in monopolistic competition
A: To find: In long-run, all firms in monopolistic competition
Q: Price or Cost 0 Price or Cost O Firm A O Firm B O Firm C Firm A O Firm D MR Quantity Firm C MR…
A: A market with very minimal competition is referred to as a monopolistic market. It does not imply a…
Q: Quantity MO ATO 21. In an oligopolistic mark MARE profits and losses, but 20. Refer to the above…
A: In a monopolistic competition, There exists a large number of buyers and sellers. The firms…
Q: A product is produced in a monopolistically competitive industry with scale economies. If this…
A: Monopolistic competition describes an industry in which several enterprises compete for the same…
Q: Why are oligopolistic firms not productively efficient? OA. They eliminate consumer surplus in order…
A: In the oligopoly only few firms dominate; and the market will be shared between these few firms. A…
Q: Suppose the accompanying graph depicts a monopolistically competitive firm earning positive economic…
A: It is given that the following graph belongs to a monopolistically competitive market that earns a…
Q: If one were to discuss why the term “monopolistic competition” is used, the best description would…
A: The monopolistic competition refers to the competition where many firms exist in the market. the…
Q: pose the accompanying graph depicts a monopolistically competitive firm earning positive economic…
A: The difference between revenue being received from sales and the cost of all inputs that are being…
Q: Please complete the following sentence. Monopolistic competition and perfect competition differ…
A: Monopolistic and Perfect Competition have similar features but are different. Monopolistic…
Q: The figure at right shows the revenue and cost curves for a typical monopolistically competitive…
A: C) In the above diagram, the profit-maximizing condition for the firm is when MR=MC. This happens…
Q: The graph shows the demand curve and marginal revenue curve of Java Time, Inc., a producer of…
A: The difference between total revenues less costs and the opportunity cost related to the income…
Q: full explain don't chatgpt answer.
A: In a monopolistically competitive market, firms have some control over price due to product…
Q: We know that monopolistically competitive firms prevent the efficient use of resources because at…
A: The objective of the question is to identify the correct statement about the relationship between…
Q: Marketers spend millions of dollars annually trying to create or reinforce brand loyalty. Brand…
A: Introduction Elasticity of demand refers to the percentage change in demand for a commodity with…
Q: A monopolistically competitive firm can earn positive profit both in the short run and in the long…
A: A monopolistically competitive market has many firms producing competition with each other. Each…
Q: cost represented by MC = 3 + 2Q. The firm faces the demand curve P = 99- 2Q. What do we expect to…
A: Option (3).
Q: he graph shows the demand curve, marginal revenue urve, and cost curves of Bob's Best Burgers, a…
A: Answer to the question is as follows:
Q: Which of the following is true for both perfect and monopolistic competition? O Firms produce a…
A: A monopolistic competition is a combination of perfect competition, where there are a lot of buyers…
Q: What is an assumption of the model of monopolistic competition? O Consumers lack adequate…
A: Monopolistic competition is one of the imperfect competition with a large number of buyers and…
Q: Advertising by firms in monopolistic competition O a. does not occur. O b. wastes resources because…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The following graphs show two firms operating in a monopolistically competitive market. The firm…
A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…
Q: $100 $90 MC АТС $80 $70 $60 $50 $40 $30 Demand = P $20 $10 MR $0 10 20 30 40 50 60 Output (Q) The…
A: When talking about Monopolistic firm, it shares some features of monopoly firm because it sets the…
Q: 8. Assume there is perfect information in the market. Calculate an insurance premium for both the…
A: Note;- Dear student we value your precious time, as you have posted a question with multiple sub…
Q: The graph shows the cost curves, demand curve, and marginal revenue curve of a firm in monopolistic…
A: Monopolists would like to maximize the profit by producing at a unit where Marginal Revenue is equal…
Q: Which of the following is a difference between a monopoisticaly compettive market and a monopoly in…
A: Market structures are essential in economics because they influence the dynamics that govern…
Q: In the long run, a monopolistically competitive firm will A. produce where p> ATC. B. produce where…
A: A monopolistic competitive market it is a structure where many industries firms and companies are…
Q: Use the chart to answer the following question. Types of Market Structures One seller controls an…
A: In monopolistic competition, there are many firms and each firm produces a differentiated product.
Q: Q4. If the cost expended in an intervention is 160m, cost saved due to averted diseases is 35m, cost…
A: To calculate the different values requested, we'll use the given information:Cost expended on the…
Q: very large number of firms with standardized products none can control price and firms are price…
A: Taking definition of each market one by one. a. Pure competition •Verg Large number of firms •…
Q: In long-run equilibrium, suppose that this restaurant charges $11 per meal for 180 meals and that…
A: In the long run, new firms are entering in to the business if there is an economic profit. If the…
Q: Use the following graph to answer questions 20-22 20. The type of competition BEST described by the…
A: A large number of sellers and buyers with homogeneous products are selling in the markets described…
Q: In the long run, the economic profit for a monopolistic competi Negative we cannot tell Positive…
A: Monopolistic competition is a market structure characterized by many firms producing similar but…
Q: In the long run, the economic profits for a monopolistically competitive firm will be A. slightly…
A: In the long run, the economic profits for a monopolistically competitive firm will beA. slightly…
Q: The table below shows the monthly demand schedule for a good in a duopoly market. The two producers…
A: Fixed cost faced by two producers in the market = $4800 Marginal cost= 0 Total cost= Fixed cost +…
Q: Monopolistically competitive firms in the long run will do which of the following? They will produce…
A: Monopolistic competition is a form of imperfect market structure with the features of more firms…
Q: imber 51: A monopolistic firm's demand, MR, MC and ATC curves 1. How much output will this firm…
A: A monopolist is a single entity, typically a company or a firm, that has complete control over the…
Q: How might a monopolistically competitive firm continually earn economic profit greater than zero? To…
A: Monopolistic competition is the market structure where there are many sellers and many buyers and…
Q: The major difference between a monopolistic competition and monopoly is, a. monopoly is a price…
A: Monopoly refers to the form of market in which there is only a single seller who selling the unique…
Q: In an monopolistic competitive industry, firms can earn positive economic profits Select one: O a.…
A: Monopolistic competition: It characterizes a number of industries that are familiar with consumers…
Q: Suppose that a firm produces baseball bats in a monopolistically competitive market. The following…
A: A market in which they do not have perfect substitutes for one another and have multiple similar…
Q: Suppose Abercrombie & Fitch sells clothing in a monopolistically competitive market and that a…
A: In economics, perfect competition is a hypothetical market structure in which all firms sell…
Q: What does the free entry and exit of firms in a monopolistically competitive market guarantee? Oa.…
A: A market structure characterized by a large number of buyers and sellers, where they offer…
Step by step
Solved in 3 steps
- Price and costs Consider the diagram below depicting the demand and cost conditions faced by a monopolistically competitive firm. a. Use the graph to show how price and output will vary depending upon which point the firm produces. Indicate the levels that will be produced under profit maximization, productive efficiency, and allocative efficiency. Instructions: (1) Use the tool provided 'Profit maximizing' to plot a point showing the price-quantity combination when the firm is maximizing profit. (2) Use the tool provided 'Productive efficiency' to plot a point showing the price-quantity combination when the firm is producing the productively efficient output level. (3) Use the tool provided 'Allocative efficiency' to plot a point showing the price-quantity combination when the firm is producing the allocatively efficient output level. Demand MR Quantity MC Tools -9 --i Productive eff Profit maximiz ATC Allocative effiExplain the profit-maximizing output leveland profitof a monopolistic firm by drawing a graph. What are the advantages of internal economies of scale? Explain them briefly. What is the meaning of ‘acceptable loss’for a perfectly competitive firm ? Draw a graph and explain. How can we increase the Total Revenue of productsby using elasticity? Explain them briefly.A monopolistically competitive firm in a long-run equilibrium will likely produce which of the following? A. a technically efficient amount of outputB. less than a technically efficient amount of output and less than an allocatively efficient amount of outputC. more than a technically efficient amount of output but less than an allocatively efficient amount of outputD. an allocatively efficient amount of production.E. less than a technically efficient amount of output and more than an allocatively efficient
- ls uccess Tips ■ccess Tips NOUT Actumpto Koup the Highest/3 3. Is monopolistic competition efficient? Suppose that a firm produces baseball bats 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. PRICE (Dollars par bat) 80 70 60 20 MO о о 10 20 40 ATC 60 QUANTITY (Thousands of bas) Demand Man Camp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is average total cost. at the the quantity at which…A fast-food restaurant decides to raise the price of its hamburgers. Assume the firm is in a monopolistically competitive industry. What will happen to the demand for its hamburgers? When the fast-food restaurant raises the price of hamburgers, A. some of its customers will be willing to pay a higher price because this restaurant is close to them. B. none of its customers will be willing to pay the higher price and will stop buying hamburgers. C. all of its customers will be willing to pay a higher price because this restaurant faces no competition. D. all of its customers will be willing to pay the higher price because they prefer this brand of hamburgers . E. none of its customers will be willing to pay the higher price because this restaurant faces competition from other restaurantsWhich two curves in a monopolistically competitive market in the long run will be equal to each other due to firm entry and exit? a. marginal revenue curve and its total cost curve. b. marginal revenue curve and its average total cost curve. c. demand curve and its total cost curve. d. demand curve and its average total cost curve.
- QUESTION 12 The figure is drawn for a monopolistically competitive firm PRICE 140 123.33 90 Table b 56.67 100 133.33 QUESTION 14 QUANTITY MC MR ATC Demand Refer to Figure. If this firm's decides to produce and sell at the profit maximizing level then what will be their O a. $8,887.78. O b.$5,000.00. OC-$5,000.00. O d. 50. QUESTION 13 A perfectly competitive firm produces where O a marginal cost equals price, while a monopolist produces where marginal cost exceeds price Ob price exceeds marginal cost, while a monopolist produces where marginal cost equals price Oc marginal cost equals price, while a monopolist produces where price exceeds marginal cost O d.marginal cost exceeds price, while a monopolist produces where marginal cost equals price.Which of the following is likely to occur in the long run based on the graph of the monopolistically competitive firm below? A. New firms are likely to enter the market decreasing prices and profits for all firms. B. New firms are likely to enter the market increasing prices and profits for all firms. C. Existing firms are likely to exit the market decreasing prices and profits for all firms. D. Existing firms are likely to exit the market increasing prices and profits for all firms. E. none of the abovecosider this statement:" because price equals longr-un average cost and profits are zero, a monopolistically competitive firm is efficient. "Do you agree ir disagree? explain
- Air Canada and WestJet recently cut their prices for flights between Toronto and Edmonton to $199. In response, Porter Airlines cut its price from $239 to $199 for flights between Toronto and Edmonton in order to remain competitive. Based on this example, what degree of competition exists in the airline industry? Select one: O a. monopolistic competition O b. oligopoly O C. perfect competition O d. not enough information to answer O e. Monopoly BThe firm in the figure below is in monopolistic competition. It will set a price equal to MC ATC MR D 0 10 20 30 40 50 60 Quantity (units per day) O a. $1. O b. $3. O c. more than $3. O d. $2. Price and costs (dollars per unit)When production is undertaken by a monopolistic firm as opposed to a firm in a perfectly competitive market, we generally observe that a. More is produced and there is a loss in surplus. b. More is produced and surplus is increased. C. Less is produced and there is a loss of surplus. d. Less is produced and there is an increase in surplus