Each of the statements below describes a characteristic of the following market structures: perfect competition (PC), monopolistic competition (MC), oligopoly (O), and monopoly (M). For each market structure, determine whether it displays each of the characteristics. Do indicating Y (for yes) or N (for no) in the response box for each market structure. (There may be multiple Ys for each characteristic.) b. price is greater than marginal revenue c. each firm produces at MES in long-run equilibrium d. firms earn profit in long-run equilibrium e. firms produce a homogeneous product f. firms advertise their product g. each firm produces output where MC = MR h. each firm produces output where P = MC i. there is free entry to the industry j. firms produce a differentiated product PC N PC Y PC N PC Y PC N PC Y PC Y PC Y PC L MC Y MC N MC N MC N MC Y MC Y MC N MC Y MC U z oo N 0 Y 0 N 0 Y 0 Y 0 o z N ZO 0 PE M Y M N M Y M N M N M Y M N M N M
Each of the statements below describes a characteristic of the following market structures: perfect competition (PC), monopolistic competition (MC), oligopoly (O), and monopoly (M). For each market structure, determine whether it displays each of the characteristics. Do indicating Y (for yes) or N (for no) in the response box for each market structure. (There may be multiple Ys for each characteristic.) b. price is greater than marginal revenue c. each firm produces at MES in long-run equilibrium d. firms earn profit in long-run equilibrium e. firms produce a homogeneous product f. firms advertise their product g. each firm produces output where MC = MR h. each firm produces output where P = MC i. there is free entry to the industry j. firms produce a differentiated product PC N PC Y PC N PC Y PC N PC Y PC Y PC Y PC L MC Y MC N MC N MC N MC Y MC Y MC N MC Y MC U z oo N 0 Y 0 N 0 Y 0 Y 0 o z N ZO 0 PE M Y M N M Y M N M N M Y M N M N M
Chapter9: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 5SQ
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Transcribed Image Text:Each of the statements below describes a characteristic of the following market structures: perfect competition (PC), monopolistic competition (MC), oligopoly (O), and monopoly (M). For each market structure, determine whether it displays each of the characteristics. Do this by
indicating Y (for yes) or N (for no) in the response box for each market structure. (There may be multiple Ys for each characteristic.)
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b. price is greater than marginal revenue
c. each firm produces at MES in long-run equilibrium
d. firms earn profit in long-run equilibrium
e. firms produce a homogeneous product
f. firms advertise their product
g. each firm produces output where MC = MR
h. each firm produces output where P = MC
i. there is free entry to the industry
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j. firms produce a differentiated product
PC
N
PC
Y
PC
N
PC
Y
PC
N
PC
Y
PC
Y
PC
Y
PC
MC
Y
MC
N
MC
N
MC
N
MC
Y
MC
Y
MC
N
MC
Y
MC
0
Y
0
N
0
Y
O ZOO ➤o z
N
Y
Y
0
N
0
N
0
M
Y
M
N
M
Y
M
N
M
N
M
Y
M
N
M
N
M
C
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