2.32 CATEGORIZATIONWhat type of market is it? In part A, determine whether eachmarket listed is an example of Perfect Competition (PC) orMonopolistic Competition (MC). In part B, determine whether eachitem is a characteristic of Perfect Competition or MonopolisticCompetition, or both (PC and MC). Circle your answer choices.A.1. РCMCbreakfast cereal2. PCMCwheat3. PC4. PCMCfast foodMCmilk5. PCMCvideo rentals. PCMClarge number of buyers and sellers7. РСMCthe seller "takes" the market price8.РСMCthe seller aims to maximize profit9. PCMCthe most competitive market structure10. PCMCthe product is homogeneousB.

A place where two parties can gather to facilitate the exchange of commodities is called a market.…

1. PC MC breakfast cereal 2 PC MC wheat 3. PC MC fast food 4. PC MC milk s. PC MC video rentals PC MC large number of buyers and sellers 7. PC MC the seller "takes" the market price PC MC the seller aims to maximize profit

1. PC MC breakfast cereal 2 PC MC wheat 3. PC MC fast food 4. PC MC milk s. PC MC video rentals PC MC large number of buyers and sellers 7. PC MC the seller "takes" the market price PC MC the seller aims to maximize profit

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 4QFR

See similar textbooks

Related questions

Q: Chapter 13 - Chapter Review i Saved b. The profit-maximizing price is $32.50. 10 points $14.30.…

A: Note :Since you have uploaded multiple sub parts of the question , the first three sub parts shall…

Q: Price Quantity Total Quantity Produced Total Marginal Marginal Cost Demanded Revenue Cost Revenue 20…

A: The demand curve of the good shows the quantity demanded of the good at various possible price…

Q: Corn Market: High Price James' Costs Mentor James' Costs Let's take a look at my costs. James' Costs…

A: At profit maximizing level of output:- Marginal Cost= Marginal…

Q: 12. The different prices. prohibits businesses from selling the same product to different people at

A: Sometimes, sellers charge different prices for the same product from different consumers, which is…

Q: Quantity (tickets per Price Total cost (dollars per (dollars per show) ticket) show) 20 1,000 18 100…

A: No children under 10 are allowed at the equilibrium, the auction discount is reduced from the…

Q: Calculate Price, Average Revenue, Marginal revenue. Explain the conditions under which these values…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 3. A used car dealership rents 210 cars for $9 a day. They want to increase the price to maximize…

Q: 2. the price that maximizes the firm's profit 3. the firm's revenue

A: We know that the profit function is : Profit = TR - TC Profit = 80q - ( 110+ 40q +10q2 ) TR = 80q…

Q: provide a detailed description of the company Luxottica and what products they sell?

A: Luxottica is the world’s largest manufacturer of frames in the world which merged with the lens…

Q: Table 2 shows Media Cable’s demand table, total revenue, and marginal revenue at each price. What is…

A: Quantity effects occurs when change in price affects the quantity, and it results into change in…

Q: Suppose Bull Gator Ben has paid his $14,300 donation and purchased eight season tickets at $32 per…

A: Total Profit = Total Revenue - Total Cost In case of profit total revenue exceeds total cost and in…

Q: You set up a business making and selling books. The average hardcover book sells for $20 and the…

A: Let X stand for the quantity of hardcover books produced and Y stand for paperbacks. The profit…

Q: Price (dollars per haircut) 40 30 25 C 20 10 Demand 1 2 3 4 5 Quantity (haircuts per hour) Enter…

A: Revenue is the total amount earned by selling certain quantity of goods . Total Revenue = Price *…

Q: 5. Competition Bob's lawn-mowing service is a profit-maximizing, competitive firm. fixxed cost. He…

A: Given that, Price = $30 Total cost per day = 320 Fixed cost = $70 Lawns per day = 10 Total variable…

Q: 5) The following statement about MC and AC is correct a) "When MC is falling , AC is…

A: The measure that depicts the graphs of the costs involved in process of production being a function…

Q: 3. Profit maximization using total cost and total revenue curves Suppose Rosa runs a small business…

A: Total revenue is defined as the sum of all incoming sources of money earned by the company through…

Q: Question 5 Shade in consumer surplus, producer surplus, and deadweight loss when Keurig is a…

A: Consumer surplus is the difference between the highest willing to pay price of the consumer and the…

Q: V.A producer faces the following demand schedule for the next medicine from one of its popular…

A: Note:- Since we can only answer up to three subparts, we'll answer the first three. Please repost…

Q: Activity 2.2 : COMPLETE ME Complete the table below by supplying it with products that you consider…

A: When it comes to shopping for items, consumers frequently have a variety of options. Price changes…

Q: Continuing with the Table of Certificate Programs, complete the calculations for Total Revenue by…

A: Total Revenue = Price × Quantity In this given that numbers of customer and prices of different…

Q: a. Calculate the missing TR and MR amounts for Group 1. Instructions: Enter your answers rounded to…

Q: 1.Describe the profit maximising rule.

A: Marginal Cost(MC) is the additional expenditure incurred on the production of additional unit of…

Q: 00-250

A: Marketers tend to provide a range of product or services choices for meeting the diverse consumer…

Q: Use the table to answer the befow question: Total Marginal Quantity Price Price Quantity Revenue…

A: The total revenue (TR) is the total money received by the firm by selling its goods and services in…

Q: Total Marginal Quantity Price Price Quantity Revenue Revenue Effect Effect 50 45 40 35 30 Calculate…

A: Total revenue is calculated by the price of the good times the quantity sold. Marginal revenue…

Q: In the figure above, what is the total revenue at point A? A) $150 B) $20 C) $2000 D) $3,000

A: The measure that depicts the money that is being generated from normal operations of the business is…

Q: 9 The cereal has only two listed ingredients: wheat and a preservative. The retail price is C$4.50…

A: A nation can have a comparative advantage and be efficient in production of wheat. In such cases,…

Q: Question 4 The following information on demand, revenue and costs of a car maker: Demand: P = 1000 –…

A: We know that the firm maximizes it's profit at a point where…

Q: Consider the total cost and total revenue of Farm Fresh Diary Output Quantity (Milk in Liters)…

A: Answer: Formulas to be used: Total revenueTR=PriceP×QuantityQ1. P=TRQ2. Average…

Q: Table 2 shows Media Cable’s demand table, total revenue, and marginal revenue at each price. What is…

A: When price of good decreases, quantity demanded increases. Decrease in price has negative effect on…

Q: Table 2 Shows Media Cable’s demand table, total revenue, and marginal revenue at each price. Why, at…

A: Answer: Total revenue: total revenue is calculated by multiplying the price and quantity. Marginal…

Q: You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to…

A: Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Think about the definitions of competition and consumer sovereignty in economics. How could we get…

A: Competition is the practice where more than one producer compete in the market with the other…

Q: Which of the habits refer to the mission statement? (a) Think win-win (b) Begin with the end in mind…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: Question 3 While charging a normal admission fee for adults most days of the week, local cinema…

A: Price discrimination is a condition where the seller offers different prices of the same good to the…

Q: A.If D=40 – 6Q, find MR and P. B. If D = 100 – 4Q and MC = 40, find profit maximizing output and…

A: Marginal revenue refers to an addition to the total revenue when one more unit of output is…

Q: 1. In the short run, the market price is $8. What is the profit maximizing output for this firm? 2.…

A: Note : Since the question contains multiple sub parts, only the first three sub parts shall be…

Q: Its cost is C = 100 – 5Q + Q² and Demand - is P = 55 – 2Q a. What is profit max price and quantity.…

A: A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and…

Q: Got it! So what is total consumer surplus in the contact lens market? Price Quantity Supplied…

A: We know that equilibrium in a market occurs when quantity demanded equals quantity supplied. From…

Q: I need full explanation for these questions so that I can understand. 1. Which of the following is…

A: 1. Non Price competition offers strategic moves through a firm can increase its sales and revenue…

Q: Table #2: The following table represents the costs of five possible sellers. Willingness to sell…

A: Sellers sell a good or service in the market only when the price received from selling the good or…

Question

2.32 CATEGORIZATION
What type of market is it? In part A, determine whether each
market listed is an example of Perfect Competition (PC) or
Monopolistic Competition (MC). In part B, determine whether each
item is a characteristic of Perfect Competition or Monopolistic
Competition, or both (PC and MC). Circle your answer choices.
A.
1. РC
MC
breakfast cereal
2. PC
MC
wheat
3. PC
4. PC
MC
fast food
MC
milk
5. PC
MC
video rentals
. PC
MC
large number of buyers and sellers
7. РС
MC
the seller "takes" the market price
8.
РС
MC
the seller aims to maximize profit
9. PC
MC
the most competitive market structure
10. PC
MC
the product is homogeneous
B.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
For market failure unit (market power). In the long run graph for monopolistic competition, firms are no longer earning abnormal profit due to low barriers to entry as there are more similar goods on the market, lowering demand, causing them to earn normal profits, however, shouldn't that cause MR to be equal to AR (demand curve), similar to the normal profit in perfect competition? Why is MR less than AR here when it is earning normal profit?
Question. What firms in perfect competitive market and monopolistic competitive market have in common? How they are different in the long run? Explain using appropriate graphs.
21.Which of the following is NOT a characteristic of monopolistic competition? A)product differentiation B)lack of barriers to entry and exit in the long run C)many competing producers D)tacit collusion 22.Which of the following describes a feature shared by monopolistic competition and perfect competition? A)few firms in the industry B)no barriers to entry or exit in the long run C)absolute market power D)standardized products 23.A common example of monopolistic competition is the market for: A)oranges. B)1-inch nails. C)automobiles. D)gas stations. 24.An industry with a large number of relatively small firms producing _____ in a market with easy entry and exit is a(n) _____. A)similar products; monopoly B)identical products; monopolistic competition C)differentiated products; oligopoly D)differentiated products; monopolistic competition 25.Monopolistic competition describes an industry characterized by a _____ number of firms producing _____ products with _____ entry.…
In which market structure would you place each of the following products: monopoly,monopolistic competition, or perfect competition? Why: a. market for water andsewerage services, b. Economics, by N. Gregory Mankiw and Mark P. Taylor, c.Economics Text book, d. Restaurants in a large city, e. Tomato f. Air travel from any oneairport.
Explain the profit-maximizing output leveland profitof a monopolistic firm by drawing a graph. What are the advantages of internal economies of scale? Explain them briefly. What is the meaning of ‘acceptable loss’for a perfectly competitive firm ? Draw a graph and explain. How can we increase the Total Revenue of productsby using elasticity? Explain them briefly.
Which industry or industries below might operate in a monopolistically competitive market? a. a barber shop b. a cerain brand of coffee c. a hotel (it is the only one int own) d. a pateneted lifesaving medicine e. both c and d
We now assume the firm producing a steel bar is under monopolistic competition. When the price of the steel bar is $ 30,000, the quantity demanded is 8 metric tons, a 100% change in the price would change the quantity demanded by 25%. The firms fixed cost is $45,000. Its variable cost in thousands at each level of production are 45, 85, 120, 150, 185, 225, 270, 325, 390, and 465. 1. At what production output should the firm produce in the long run? 2. At what price should the firm sell its product in the long run?