Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 10R, Problem 21MCQ
To determine
The correct option for given situation where characteristics of
Expert Solution & Answer
Answer to Problem 21MCQ
Option c is correct.
Explanation of Solution
Explanation for correct option:
c.
Monopolistic competition refers to the type of market structure where manufacturer produces similar products which can be differentiated. Also, there are many firms and no barriers for new comers. Therefore, option c is correct.
Explanation for incorrect options:
a.
The products sell by the monopolistic competitors are not standardized instead they are differentiated on the basis of quality, price, etc. Therefore, option a is incorrect.
b.
In monopolistic competition, many firms can sell differentiated products in the same market unlike
d.
Barriers for new sellers are not at all high in monopolistic competition. Therefore, option d is also incorrect.
e.
In monopoly competition, there are one or two sellers, high barriers to enter or exit the market and differentiated products not in monopolistic competition. Therefore, option e is incorrect.
Economics Concept Introduction
Monopolistic competition: It is one of the type of market structure, where there are many firms present and products they produces are similar but differentiated.
Chapter 10R Solutions
Krugman's Economics For The Ap® Course
Ch. 10R - Prob. 1MCQCh. 10R - Prob. 2MCQCh. 10R - Prob. 3MCQCh. 10R - Prob. 4MCQCh. 10R - Prob. 5MCQCh. 10R - Prob. 6MCQCh. 10R - Prob. 7MCQCh. 10R - Prob. 8MCQCh. 10R - Prob. 9MCQCh. 10R - Prob. 10MCQ
Ch. 10R - Prob. 11MCQCh. 10R - Prob. 12MCQCh. 10R - Prob. 13MCQCh. 10R - Prob. 14MCQCh. 10R - Prob. 15MCQCh. 10R - Prob. 16MCQCh. 10R - Prob. 17MCQCh. 10R - Prob. 18MCQCh. 10R - Prob. 19MCQCh. 10R - Prob. 20MCQCh. 10R - Prob. 21MCQCh. 10R - Prob. 22MCQCh. 10R - Prob. 23MCQCh. 10R - Prob. 24MCQCh. 10R - Prob. 25MCQCh. 10R - Prob. 1FRQCh. 10R - Prob. 2FRQCh. 10R - Prob. 3FRQCh. 10R - Prob. 1CTQCh. 10R - Prob. 2CTQCh. 10R - Prob. 3CTQCh. 10R - Prob. 4CTQ
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