receiving a per-unit subsidy. D-The firm is operating with allocative efficiency. E-The firm's price is the level where marginal revenue equals marginal cost. (2)What is the key difference between monopolistic competition and an oligopoly market? A-In an oligopoly, the number of firms is so small they strategize their production interdependently. B-In monopolistic competition, the marginal revenue is beneath the demand curve because of market power. C-Oligopolies generally have a lower market concentration and a lower minimum efficient scale. D-Monopolistically competitive markets have more significant barriers to entry into and exit from the industry. E-Oligopolies see consistent economies of scale across their entire product demand.
(1) A monopolistically competitive firm is earning positive economic profit. Which of the following must be true?
A-The firm is not in long-run equilibrium. B-The firm is not producing where marginal revenue equals marginal cost. C-The firm is receiving a per-unit subsidy. D-The firm is operating with
E-The firm's price is the level where marginal revenue equals marginal cost.
(2)What is the key difference between
A-In an oligopoly, the number of firms is so small they strategize their production interdependently.
B-In monopolistic competition, the marginal revenue is beneath the demand curve because of market power.
C-Oligopolies generally have a lower market concentration and a lower minimum efficient scale.
D-Monopolistically competitive markets have more significant barriers to entry into and exit from the industry.
E-Oligopolies see consistent economies of scale across their entire product demand.
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