Monopolistic competition and its features.

Question

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Answer 1

Question

Chapter 16, Problem 1CQQ

To determine

Monopolistic competition and its features.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Similar to monopoly, monopolistic markets are price setters, rather than price takers. Therefore, it does not take the price given by market conditions. Thus, option ‘b’ is correct.

Option (a):

In a monopolistic competitive market, products are differentiated; that is, it sells similar (but not identical) products of its competitors. Since the statement is a feature of monopolistic market, option ‘a’ is incorrect.

Option (c):

A monopolistic competitive market can attain profit maximization both in the short run as well as the long run. Hence, option ‘c’ is incorrect.

Option (d):

Since the monopolistic market features free entry and exit of firms in the market, option ‘d’ is incorrect.

Economics Concept Introduction

Concept introduction:

Monopolistic competition: It is an imperfect market structure in which many firms sell products that are differentiated from one another.

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Answer 2

Question

Chapter 16, Problem 1CQQ

To determine

Monopolistic competition and its features.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Similar to monopoly, monopolistic markets are price setters, rather than price takers. Therefore, it does not take the price given by market conditions. Thus, option ‘b’ is correct.

Option (a):

In a monopolistic competitive market, products are differentiated; that is, it sells similar (but not identical) products of its competitors. Since the statement is a feature of monopolistic market, option ‘a’ is incorrect.

Option (c):

A monopolistic competitive market can attain profit maximization both in the short run as well as the long run. Hence, option ‘c’ is incorrect.

Option (d):

Since the monopolistic market features free entry and exit of firms in the market, option ‘d’ is incorrect.

Economics Concept Introduction

Concept introduction:

Monopolistic competition: It is an imperfect market structure in which many firms sell products that are differentiated from one another.

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Answer 3

Question

Chapter 16, Problem 1CQQ

To determine

Monopolistic competition and its features.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Similar to monopoly, monopolistic markets are price setters, rather than price takers. Therefore, it does not take the price given by market conditions. Thus, option ‘b’ is correct.

Option (a):

In a monopolistic competitive market, products are differentiated; that is, it sells similar (but not identical) products of its competitors. Since the statement is a feature of monopolistic market, option ‘a’ is incorrect.

Option (c):

A monopolistic competitive market can attain profit maximization both in the short run as well as the long run. Hence, option ‘c’ is incorrect.

Option (d):

Since the monopolistic market features free entry and exit of firms in the market, option ‘d’ is incorrect.

Economics Concept Introduction

Concept introduction:

Monopolistic competition: It is an imperfect market structure in which many firms sell products that are differentiated from one another.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 16, Problem 1CQQ

To determine

Monopolistic competition and its features.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Similar to monopoly, monopolistic markets are price setters, rather than price takers. Therefore, it does not take the price given by market conditions. Thus, option ‘b’ is correct.

Option (a):

In a monopolistic competitive market, products are differentiated; that is, it sells similar (but not identical) products of its competitors. Since the statement is a feature of monopolistic market, option ‘a’ is incorrect.

Option (c):

A monopolistic competitive market can attain profit maximization both in the short run as well as the long run. Hence, option ‘c’ is incorrect.

Option (d):

Since the monopolistic market features free entry and exit of firms in the market, option ‘d’ is incorrect.

Economics Concept Introduction

Concept introduction:

Monopolistic competition: It is an imperfect market structure in which many firms sell products that are differentiated from one another.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 1CQQ

To determine

Monopolistic competition and its features.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Similar to monopoly, monopolistic markets are price setters, rather than price takers. Therefore, it does not take the price given by market conditions. Thus, option ‘b’ is correct.

Option (a):

In a monopolistic competitive market, products are differentiated; that is, it sells similar (but not identical) products of its competitors. Since the statement is a feature of monopolistic market, option ‘a’ is incorrect.

Option (c):

A monopolistic competitive market can attain profit maximization both in the short run as well as the long run. Hence, option ‘c’ is incorrect.

Option (d):

Since the monopolistic market features free entry and exit of firms in the market, option ‘d’ is incorrect.

Economics Concept Introduction

Concept introduction:

Monopolistic competition: It is an imperfect market structure in which many firms sell products that are differentiated from one another.

Answer 6

Chapter 16, Problem 1CQQ

To determine

Monopolistic competition and its features.

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Explanation of Solution

Option (b):

Similar to monopoly, monopolistic markets are price setters, rather than price takers. Therefore, it does not take the price given by market conditions. Thus, option ‘b’ is correct.

Option (a):

In a monopolistic competitive market, products are differentiated; that is, it sells similar (but not identical) products of its competitors. Since the statement is a feature of monopolistic market, option ‘a’ is incorrect.

Option (c):

A monopolistic competitive market can attain profit maximization both in the short run as well as the long run. Hence, option ‘c’ is incorrect.

Option (d):

Since the monopolistic market features free entry and exit of firms in the market, option ‘d’ is incorrect.

Economics Concept Introduction

Concept introduction:

Monopolistic competition: It is an imperfect market structure in which many firms sell products that are differentiated from one another.

Answer 7

Chapter 16, Problem 1CQQ

To determine

Monopolistic competition and its features.

Answer 8

Expert Solution & Answer

Answer to Problem 1CQQ

Option ‘b’ is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option (b):

Similar to monopoly, monopolistic markets are price setters, rather than price takers. Therefore, it does not take the price given by market conditions. Thus, option ‘b’ is correct.

Option (a):

In a monopolistic competitive market, products are differentiated; that is, it sells similar (but not identical) products of its competitors. Since the statement is a feature of monopolistic market, option ‘a’ is incorrect.

Option (c):

A monopolistic competitive market can attain profit maximization both in the short run as well as the long run. Hence, option ‘c’ is incorrect.

Option (d):

Since the monopolistic market features free entry and exit of firms in the market, option ‘d’ is incorrect.