I need full explanation for these questions so that I can understand. 1. Which of the following is not an example of non-price competition? a. Advertising b. Quality improvements c. Customer service d. Location e. Price discounts 2. In the short-run, a monopolistically competitive firm can receive a. Only a normal profit. b. Only a positive economic profit. c. Only a negative economic profit. d. A positive or negative economic profit, or a normal profit. 3. In both perfect competition and monopolistic competition, firms a. Produce differentiated products. b. Produce standardized products. c. Receive only a normal profit in the long run. d. Engage in non-price competition. e. Always receive only a normal profit in the short run.
I need full explanation for these questions so that I can understand.
1. Which of the following is not an example of non-price competition?
a. Advertising
b. Quality improvements
c. Customer service
d. Location
e. Price discounts
2. In the short-run, a monopolistically competitive firm can receive
a. Only a normal profit.
b. Only a positive economic profit.
c. Only a negative economic profit.
d. A positive or negative economic profit, or a normal profit.
3. In both
a. Produce differentiated products.
b. Produce standardized products.
c. Receive only a normal profit in the long run.
d. Engage in non-price competition.
e. Always receive only a normal profit in the short run.
4. Considering all four market structures, which of the following occurs only in an oligopoly?
a. A downward sloping market demand curve.
b. A downward sloping demand curve for the individual firm.
c. Interdependence and strategic behavior.
d. A differentiated product.
e. A standardized product.
5. Which of the following advertisements provides information to the consumer?
a. “CarbChips have half the carbohydrates of regular potato chips”.
b. “The Taj Mahal restaurant is like a trip to India”.
c. “Brain-power Books – just think it!”
d. “Avion Airlines wants to take you higher”.
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