Which of the following is different about perfect competition and monopolistic competition? Question 3Answer a. In monopolistic competition, entry into the industry is unblocked. b. Perfect competition has a large number of independently acting sellers. c. Firms in monopolistic competition compete on their product's price as well as its quality and marketing. d. Only firms in monopolistic competition can earn an economic profit in the short run

Which of the following is different about perfect competition and monopolistic competition? Question 3Answer a. In monopolistic competition, entry into the industry is unblocked. b. Perfect competition has a large number of independently acting sellers. c. Firms in monopolistic competition compete on their product's price as well as its quality and marketing. d. Only firms in monopolistic competition can earn an economic profit in the short run

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 5P

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Which of the following is different about perfect competition and monopolistic competition? a. In monopolistic competition, entry into the industry is unblocked. b. Firms in monopolistic competition compete on their product's price as well as its quality and marketing. c. Perfect competition has a large number of independently acting sellers. d. Only firms in monopolistic competition can earn an economic profit in the short run
Which of the following is different about perfect competition and monopolistic competition? Question 3Answer a. In monopolistic competition, entry into the industry is unblocked. b. Perfect competition has a large number of independently acting sellers. c. Firms in monopolistic competition compete on their product's price as well as its quality and marketing. d. Only firms in monopolistic competition can earn an economic profit in the short run
An important difference between the situation faced by a profit-maximizing monopolistically competitive firm in the short run and the situation faced by that same firm in the long run is that in the short run, a. there are many firms in the market, but in the long run, there are only a few firms in the market. b. price may exceed marginal cost, but in the long run, price equals marginal cost. c. price may exceed marginal revenue, but in the long run, price equals marginal revenue. d. price may exceed average total cost, but in the long run, price equals average total cost.
A. How does the demand curve faced by the firm in monopolistically competitive market differ from the demand curve faced by a firm participating in a purely competitive market? b. How does that impact how the firm sets its price and the quantity the firm produces?
II. The figure is drawn for a monopolistically competitive firm. PRICE 140 123.33 90 56.67 100 133.33 QUANTITY MC ATC Demand MR Refer to the figure above and explain: A). In order to maximize its profit, how many units the firm will choose to produce? 100 B). When the firm is maximizing its profit, the markup over marginal cost amounts to 50 C). The firm's maximum profit is D). Efficient scale is reached beyond which level of units? 133.33
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
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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
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I need help with number 1 because I have no clue which one is correct. I need some sort of explanation 1. Which of the following is true of the model of monopolistic competition? a. Barriers to entry enable firms to enjoy positive profits in the long run. b. The number of firms declines over time as a result of economies of scale. c. The monopolistically competitive firms enjoy a greater market power than a monopolist. d. Firms tend to locate near each other in order to minimize total travel costs for consumers. e. The firms end up charging same prices for their individual products. 2. Which of the following is an example of price competition? a. Nike signs LeBron James to a $90 million contract for endorsements. b. Kellogg's puts the images of Snap, Crackle, and Pop on boxes of Cocoa Krispies, linking the cereal with Rice Krispies. c. McDonald's introduces new garden McSalads. d.…
Critically evaluate and explain:a. In monopolistically competitive industries, economic profits are competed away in the long run; hence, there is no valid reason to criticize the performance and efficiency of such industries. b. In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits.
3. You are hired as a consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is maximizing profit, is the market in a long-run equilibrium? If not, what will happen to restore long-run equilibrium? a. P < MC, P > ATC b. P > MC, P < ATC c. P = MC, P > ATC d. P > MC, P = ATC