If a monopolistically competitive market became perfectly competitive, output would likely: Choose correct and explain your choice a.rise. b.fall. c.not change. d.rise, then fall.d. has no relation to price.

If a monopolistically competitive market became perfectly competitive, output would likely: Choose correct and explain your choice a.rise. b.fall. c.not change. d.rise, then fall.d. has no relation to price.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 9RQ: If the firms in a monopolistically competitive market are earning economic profits or losses in the...

See similar textbooks

Related questions

Q: (1) A monopolist is forced to lower its price in order to sell another unit of its product. This…

A: As per the guidelines answer is given to the first question i.e. (1): (1) "A monopolist is a price…

Q: Economics 4. Suppose that Okun's law can be described by the following equation: Y-Y* = -3(u – u')…

Q: 4. Suppose the economy has 100 units each of goods X and Y and the utility functions of the (only) 2…

A: * SOLUTION :- (4) Given that , Ua ( Xa,Ya) = X^0.25*Y^0.75 Ub (Xb,Yb) = X^0.75* Y^0.25 From…

Q: If firms exit an industry, the Select one: a. output of the industry increases. b. profits of…

A: "In the long-run firms exit the industry if the firms in the industry are earning economic losses."

Q: How important is CFO in a rural bank? What he can do that others cannot?

A: As a top executive, the chief financial officer is in charge of a company's financial operations.…

Q: The aggregate change of consumption, Ċ(t) and the aggregate change of the capital stock, K(t), are…

A: We are going to find steady state capital and consumption to answer this question.

Q: undervalued; decrease by 20 overvalued; decrease by 240 O overvalued; decrease by 40 O undervalued;…

A: The above-given graph shows the quantity of domestic currency exchanged on the horizontal axis and…

Q: An on-line commercial directory service must decide between composing the ads for its clients…

A: Given, Total cost = $46,500Salvage value = $2,300Useful life = 3 yearsWage = $69,000Average cost =…

Q: al domestic expenditure E, number of people living in poverty P, and of household members in a…

A: *Answer: Introduction: A rate of change is the relationship between a change in an output quantity…

Q: Which of the following is a method a incumbent's can use to make limit pricing a credible threat?…

A: When talking about the competition at the marketplace, incumbents are the sellers who tries to get…

Q: Suppose that the production function for a phone is ? = 20K^0.5L ^0.5 . The marginal product of…

Q: What are the similarities between African and feminist Ethics.

A: similarities between African and feminist Ethics African Ethics African ethics is seen as hereditary…

Q: After two years of suspension, this 2022 the National Cheese and Wine Fair returns, which will take…

A: If the firm/farmer/producer takes the prices as given, which are determined by the market, then it…

Q: Equity Group has launched a private sector focused stimulus package to accelerate economic recovery…

A: Marketing is in charge of informing clients about products, such as who is selling them and why they…

Q: true or false: 21) The indivisible reserve of savings and credit cooperatives is NOT covered by…

A: An person or institution obtains financial protection or compensation against losses from an…

Q: Suppose that the natural rate of unemployment in a particular year is 4 percent and the actual rate…

A: The lowest level of unemployment which can be tolerated in the economy without giving rise to…

Q: The people who live on Shangri-La Island consume only rice and fish. Last year, which was the…

A: Consumer price index(CPI): - it is a measure of change in the price level, it measures the change in…

Q: Question 7 As competitors enter a monopolistically competitive industry, the incumbent firms'…

A: "Monopolistically competitive industry have firms which offer commodities or services which are…

Q: for product X. Eq. 1 Eq. 2 Qdx = 65,000 – 11.25P; + 15P, – 3.75/ +7.5A Qsx = 7,500 + 14.25PX – 15P,…

A: We are going to solve these questions using partic derivative techniques

Q: In a particular very small region, the consumer price index, C, depends on the rrent value of gross…

A: The relationship between a change in an output quantity and a change in an input quantity is called…

Q: Which of the following statements is true? a. In a finitely repeated prisoner’s dilemma, players…

A: Nash Equilibrium: A Nash equilibrium refers to one in which no one can get better without making…

Q: 1. Consider the following information for Dhaka Water Supply Authority (WASA). Total revenue…

A: We have given Quantity (1000s of liter) Price (in taka/liter 0 11 1 10 2 9 3 8 4 7 5…

Q: 4. The following graph shows the price, marginal cost and average cost curves for a firm. RM /MC 15…

A: Answer: (a). In the given figure, the demand curve is horizontal thus the firm is operating in…

Q: Economics 1. Assume a nco-classical aggregate supply model with both long run and short run…

A: Supply and demand are the driving factors underlying the creation, price, and consumption of…

Q: 3. Explain the following questions about The Beckmann Model Outline Beckmanns model of spatial…

A: The spatial monopoly model developed by Beckmann When it comes to the structure of the market,…

Q: A firm has the following average variable cost equation. AVC = 60 – 15Q+ Q? And the average total…

A: Average total cost is the sum of average variable cost and average fixed cost i.e., ATC = AVC + AFC…

Q: What is the total amount of interest paid to the bank over 4 years period if you borrowed $89886 to…

A: The information given is:- Amount borrowed = $89886 Monthly interest rate = 1% Tenure = 4 years We…

Q: PRO Engineering is considering whether to purchase or lease a piece of earthmoving equipment. The…

A: Leases are normally simpler to get and have more adaptable terms than advances for purchasing gear.…

Q: Use the Solow-Swan diagram to show the impact of an increase in human capital on GDP, both in the…

A: Solow-Swan model is an economic growth model.

Q: 21) The Indivisible reserve of savings and credit cooperatives is NOT covered by COSSEC insurance.

A: COSEC insurance protects the indivisible reserve of savings and credit cooperatives.

Q: Using an AD/AS diagram, demonstrate what happens when consumers decide to spend more?

A: The economics as a study is based upon the idea that the entities in the economy tend to make…

Q: 5. A truck for hauling coal has an estimated net cost of $55,000 and is expected to give service for…

A: Investment = $55,000, Salvage Value = $5,000, total service units = 250,000 miles, and usage for…

Q: year. The transaction was denominated in Euros. The exchange rate at the time Was US Euro. However,…

A: Foreign Currency exchange can be presented in either direct quote or indirect quote. A direct…

Q: A company manufactures products in batches of 200 on one machine. If the company works 8 hours per…

A: Batches of Machine = 200 company work. 8 hrs, 5 days per week

Q: J. What is the price range that will result to a surplus in the market?

A: * SOLUTION :- (J)

Q: in oligopoly market every company wants to apply price competition. Use the Bertrand model to…

A: Bertrand contest is a model of rivalry utilized in financial matters, named after Joseph Louis…

Q: Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known…

A: The aggregate demand curve shows the inverse relationship between the price level and the total…

Q: 1. Suppose the automobile industry in Dreamland is required to pay 3 percent of surcharge on every…

A: Trade involves a lot of ifs and buts. So when a government opens up to trade it has to keep in mind…

Q: The figure below shows a consumer maximizing utility at two different prices (the left panel) and…

A: In this question, we have to find the compensating variation due to an increase in the price of…

Q: Age Earnings per year 20-29 8,00,000 30-39 10,00,000 40-49 12,00,000 50-59 15,00,000 e of 60 workers…

A: Direct labor cost is a piece of compensation bill or finance that can be explicitly and reliably…

Q: 1. Assume you spend your entire incomc on two goods X & Y with prices given as Px & Py,…

A: Given function U=X2+Y2 Price of X=Px Price of Y=Py

Q: 4. Suppose that Okun's law can be described by the following equation: Y-Y* = -3 (u - u") Y* Where u…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: 2. Assume equations 1 and 2 below were estimated from the data gathered that will represent the…

A: Introduction We have given a demand and supply equations. Equation of demand function: Qdx = 65,000…

Q: Bob's lawn-mowing service is a profit-maximizing, competitive firm. Bob mows lawns for $25 each. His…

A: Profit Maximization is a objective of firm with given resources . Firm focuses either to minimise…

Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…

A: Since you have posted Multiple Subparts as per the guidelines we can solve only the first 3…

Q: 2. Tom quit his $65,000 a year corporate lawyer job to open up his own law practice. In Tom's first…

A: The difference between the accounting profit and the implicit cost is referred to be as the…

Q: Question 13 Refer to Figure 6-1 What are total costs for Dough!, given that it maximize profits?…

A: "A monopoly firm maximizes profit when marginal revenue (MR) intersects marginal cost (MC)."

Q: Contrast the risk tolerance and Liquidity needs for Banks and Individual investors

A: Introduction There is always a risk in life when there is an opportunity to gain. Knowing how much…

Q: 1. A good is produced using $160 in imported inputs. The current domestic price of the good is $200.…

A: Given Cost of imported inputs = $160 The current domestic price of final goods = $200 We have to…

Q: [Basic static analysis of tax] Draw a simple model of the retail market for petrol in Australia.…

A: Retail refers to the selling of products and services to consumers, as opposed to wholesale, which…

Question

If a monopolistically competitive market became perfectly competitive, output would likely: Choose correct and explain your choice

a.rise.

b.fall.

c.not change.

d.rise, then fall.d. has no relation to price.

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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

Trending now

This is a popular solution!

Step by step

Solved in 2 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?
A. How does the demand curve faced by the firm in monopolistically competitive market differ from the demand curve faced by a firm participating in a purely competitive market? b. How does that impact how the firm sets its price and the quantity the firm produces?
Comparing a perfectly versus monopolistic competitive market, in the long run what happens to prices and profits? a) Has equal profit and higher prices b) Has equal profit and lower prices c) Has equal profit and equal prices.
Explain the importance of advertising in monopolistically competitive industries how does his compare with the importance of advertising in perfectly competitive industries?
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
What differentiates monopolistic competition from a monopoly?a A seller operating in a monopolistically competitive market no longar facet a downward-sloping demand curve,b. There are more seller,c. Firms can enter the market selling similar but not identical productd. (b) and (e)e. all of the above
\IV hat is true of a monopolistically competitive marketin long-run eqUilibrium?a. Price is greater than margi nal cost.b . Price is equal to marginal revenue.c. Firms make positive economic profits.d. Firms produce at the minimum of average total cost.
In what way(s) is a monopolistically competitive firm inefficient? Group of answer choices It charges a price lower than marginal cost. It produces where marginal revenue is equal to marginal cost. It does not produce at the minimum of its average cost curve.
How does advertising impact monopolistically competitive firms? (a) advertising always causes monopolistically competitive firms to experience lower average costs (b) it either causes a firm's perceiveddemand curve to become more elastic, or advertising causes demand for the firm's product to increase.
Draw a diagram containing the long-run average and marginal cost curves, the demand curve facing the firm, and the marginal revenue curve for a profit-maximizing monopolistically competitive firm, at the long-run equilibrium. Make your diagram large and label all curves, axes, and points. Pls do fast