A firm is operating in the United States with only two other competitors in the industry.   a. It is likely this industry would be characterized as:   multiple choice 1 perfectly competitive. pure monopoly. monopolistically competitive. oligopoly.   b. Firms in this industry will likely earn:   multiple choice 2 an economic loss. an economic profit. a normal profit.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 1.1P
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A firm is operating in the United States with only two other competitors in the industry.

 

a. It is likely this industry would be characterized as:

 

multiple choice 1

  • perfectly competitive.
  • pure monopoly.
  • monopolistically competitive.
  • oligopoly.

 

b. Firms in this industry will likely earn:

 

multiple choice 2

  • an economic loss.
  • an economic profit.
  • a normal profit.

 

c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that:

 

multiple choice 3

  • economic profits will increase.
  • economic losses will become smaller.
  • economic profits will fall.
  • normal profits will increase.
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