Q: Monopolistically competitive firms use product differentiation to a.limit the number of firms in the…
A: In monopolistically competitive market, the sellers sell differentiated products which are close…
Q: There would be a unique product for which there are few close substitutes under which market model?…
A: A pure monopoly is a solitary provider inside a characterized market or industry. The firm…
Q: Monopolistically competitive markets are like perfectly competitive markets because
A: Characteristics of a perfectly competitive market. A large number of buyers and sellers Homogenous…
Q: In a monopolistic competition market, a company will earn maximum profits by setting output at the…
A: In monopolistic market, 1) there are many number of buyers but only few number of sellers.2) There…
Q: Imagine a scenario in which the fashion industry is suffering from monopolistic price gouging and a…
A: The price gouging is a situation when the firms charge high prices that are unfair. The prices of…
Q: Monopolistic competitive firms are productively inefficient because production occurs where Multiple…
A: The type of market structure in which there are many firms in the market who sell similar products…
Q: The goal of product differentiation and advertising in monopolistic competition is to make: Multiple…
A: Monopolistic competition: - monopolistic market structure is the structure in which there is a large…
Q: The demand curve for a monopolistically competitive firm is downward sloping because Group of answer…
A: The monopolistic market firm produces differentiated products so each firm has its own demand for…
Q: Which of the following conditions does NOT describe afirm in a monopolistically competitive…
A: Monopolistic competition is a form of imperfect competition where there are a large number of buyers…
Q: A key characteristic of a monopolistically competitive market structure is many independent sellers…
A: Monopolistic competition describes an industry wherein numerous organizations offer services and…
Q: The larger the number of firms in a monopolistic competition situation:
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: In a monopolistic competition market structure it is likely that if a company is earning profits it…
A: A) in perfect competitive market:- 1) in perfect competitive market, there are many number of…
Q: Confronted with the same unit cost data, a monopolistic producer will charge
A: A monopolist charge a higher price when confronted with the same unit cost data and produces a…
Q: In the long run the demand curve that a monopolistic competitor faces for its product will likely:
A: A monopolistically competitive market is unsustainable in the long run. Furthermore, since a…
Q: A monopolistically competitive firm in long-run equilibrium A. Will make a negative profit B.will…
A: There are many firms in the monopolistically competitive market but differentiated products are…
Q: If a monopolistically competitive firm can increase its level of production and lower its average…
A: A monopolistic competitive firm operates under a combined condition of both a perfect competition…
Q: Is the outcome in a monopolistically competitive market desirable from the standpoint of society?…
A: A monopolistic competitive market is the one where firms provide differentiated goods which makes…
Q: For a monopolistically competitive firm, marginal revenue is equal to price. is this true or…
A: Consider what is the marginal revenue ? Marginal revenue is the change in the revenue from an…
Q: In monopolistically competitive markets, zero economic profit is associated with: Select one: a.…
A: monopolistically competitive market refers to the form of market in which many firms offer goods and…
Q: A monopolistically competitive firm cannot make strictly positive profits in the long run because…
A: In monopolistically competitive market, the sellers sell differentiated produces which are close…
Q: Which of the following is the best example of a market with monopolistic competitors? Group of…
A: At the marketplace, there are different places to sell different types of products based on there…
Q: A monopolistically competitive firm maximize profit where
A: Monopolistically competitive:- Monopolistic competition describes an economy where several…
Q: A monopolistically competitive industry is similar to a perfectly competitive industry in that firms…
A: To determine how a monopolistically competitive industry is similar to a perfectly competitive…
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: The larger the number of firms in a monopolistic competition situation, a. the lower is the average…
A: Monopolistic Competition: Monopolistic competition can be defined as an industry in which many firms…
Q: Consider a monopolistically competitive market with N firms. Each firm’s business opportunities are…
A: The main objective of every firm is to maximize its profits. Profits are maximized when the…
Q: Which of the following situations is representative for long-run equilibrium in monopolistic…
A: A monopolistic industry is one in which a large number of businesses compete for the same (but not…
Q: There are complete barriers to entry in monopolistic competition. True False
A: Monopolistic competition is a type of a imperfect market structure.
Q: In the long run, monopolistically competitive firms will charge price
A: Meaning of Monopolistic Competition: The term monopolistic competition refers to the situation…
Q: does a monopolistic competitor produce too much or too little output compared to the most efficient…
A: A monopolistic market is characterized by many sellers selling differentiated products, imperfect…
Q: Monopolistic competitive firms' profit maximization decision a perfectly competitive firm. a…
A: Profit: Profit is the amount that a firm earns after subtracting all its expenses from total…
Q: You are hired as the consultant to a monopolistically competitive firm. The firm reports the…
A: Here, two pricing situation of a monopolistic firm is given. A Monopolistic firm has different…
Q: Due to a successful advertising campaign, a monopolistic competitor experiences an increase in…
A: The advertising campaign will attract new customers. Therefore, the firm’s demand curve will shift…
Q: In the long run, monopolistically competitive firms produce a level of output such that:
A: In the long run firms have complete freedom to enter and exit the monopolistic market. And they can…
Q: Price is: equal to marginal cost for both perfect and monopolistic competitors. greater than…
A: Answer: Correct option: Price is equal to marginal cost for perfect competitors and greater than…
Q: Which of these markets is most likely to be identified as monopolistic competition? Group of…
A: In case of monopolistic competition many firms offer the goods that are not that similar. (a) Shoes-…
Q: When the excess capacity problem under monopolistic competition becomes greater, there will be:…
A: In monopolistic competition, there are a large number of firms which produce differentiated products…
Q: Conditions needed for the success of a monopolistic competitive market is controlled production and…
A: There are four main forms of markets which are perfect competition, oligopoly, monopoly, and…
Q: A decrease in the number of competitors in a monopolistically competitive market causes an increase…
A: Answer - monopolistically competitive market:- It is the market where is no barrier or entry and…
Q: How does the short run differ from the long run in a monopolisticallycompetitive market?
A: A form of inconsistent competition is monopolistic competition so that multiple suppliers market…
Q: Describe the three attributes of monopolistically competitive markets.
A: Monopolisticaly Competitive Market are mid way of perfect competition and monopoly market.…
Q: true or false Monopolistic firms do not care about profits, their goal is to maximize total revenue.
A: The market structure can be divided into four based on the degree of competition and the type of…
Q: Suppose sellers in a monopolistically competitive market are experiencing negative economic profit,…
A: Monopolistic competition: Monopolistic competition is a market system that combines monopolistic and…
Q: "A monopolistically competitive market in which there are no entry barriers will have the identical…
A: A perfect competition is a structure of a market in which there are many sellers and buyers. The…
Q: In the long run, the economic profits for a monopolistically competitive firm will be Multiple…
A: Long run: It means a period of time in which all factors of production and costs are variable.
true or false Consumers are generally worse off under competitive markets than under monopolistic markets
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following is shared by both monopolistically competitive markets and prefectly competitive markets?Suppose the market for kitchen knives is monopolistically competitive and that businesses in this market are currently earning negative economic profits. In the long run, the demand for an individual kitchen knife business will ______ as more kitchen knife businesses leave the market, which will cause economic profits to ______ .When oil prices increased 10 fold during the 1973 – 80 energy crisis, many oil companies made huge profits. During this energy crisis, Congress considered imposing an “excess profits” tax on oil companies. If you were in Congress, would you vote for such a tax? Do unexpected monopolistic profits serve any useful function in a market economy?
- 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? P < MC, P > ATC P > MC, P < ATC P = MC, P > ATC P > MC, P = ATCA decrease in the number of competitors in a monopolistically competitive market causes an increase in the price elasticity of demand for the output of each of the remaining firms in the market.Due to a successful advertising campaign, a monopolistic competitor experiences an increase in demand for its product. In the long run, the positive economic profits that the monopolistic competitor earns will attract a response either from existing firms in the industry or firms outside. As those firms capture the original firm’s profit, what will happen to the original firm’s profit-maximizing price and output levels?
- What do economists mean when they say that competitive markets are more efficient than monopolistic markets? Monopolistic markets result in lower price and higher production Competitive markets result in lower prices, monopolistic market result in higher production Competitive markets result in lower costs, lower prices, and higher levels of production Easy entry and exitSuppose you operate in a monopoly environment and you set your price in order to achieve maximum profits. Is your demand elastic, unitary elastic, or inelastic? Does your answer change if you were in a monopolistically competitive market? What happens to the elasticity when you go from a monopolistic market to a monopolistically competitive one? Explain and give an example.Is the outcome in a monopolistically competitive market desirable from the standpoint of society? Can the government improve on the market outcome?
