If the price of the product in a monopolistically competitive market decreases what happens to the number of individual firms in the market in the long run? What happens to the amount of profit the typical firm makes in the long run? Fully explain your answer.

Q: What are the differences between the two market structures of monopolistic competition and monopoly?…

A: Four different types of market structures in an economy are perfect competition, monopoly,…

Q: Assume a monopolistic publisher has agreed to pay an author 10 percent of the total revenue from the…

A: No, the publisher and the author will not charge the same price. In the case of the situation, the…

Q: Aside from advertising, how can monopolistically competitive firms increase demand for their…

A: Monopolistic competition is an imperfect market structure in which there are large number of buyers…

Q: What is the edge of perfect competition to monopolistic competition? What is way more better?…

A: Perfect competition: It is a market structure where there exist a large number of buyers and a large…

Q: List the three key attributes of monopolistic competition.

A: Monopolistic competition is a market characterized by many firms producing differentiated products.…

Q: What effect would a successful advertising campaign differentiating a product from one's competitors…

A: Definition; Product advertising is paid promotional communication aimed at persuading consumers to…

Q: Explain why monopolistic competition delivers neither productive nor allocative efficiency.

A: In monopolistic competition, a large number of firms compete with each other in order to share the…

Q: Why do monopolistically competitive firms spend funds for the product development and advertising…

A: (Q) Why do monopolistically competitive firms spend funds for the product development and…

Q: Which of the following items are sold by firms in monopolistic competition? Explain your selections.…

A: Monopolistic competition can be understood as a market where many firms are offering a product that…

Q: does a monopolistically competitive firm have an incentive to produce at the level of output that…

A: Monopolistic competition is an imperfect market competition where firms offer similar product but…

Q: Which of these businesses are in monopolistic competition? Two clothing shops, one selling…

A: A monopolistic competition is a combination of monopoly market and perfectly competitive market. In…

Q: Look at the figure below. Which diagram is consistent with a monopolistic competitor making zero…

A: Answer to the question is as follows :

Q: Suppose you manage a local grocery store, and you learn that a very popular national grocery chain…

A: In monopolistic competition, each firm assumes that the price charged by the competitor will remain…

Q: Describe in words at which price and quantity firms in monopolistic competition maximize profits or…

A: Monopolistic competition is an imperfect competition where there is a large number of sellers…

Q: What are the main characteristics of a monopolistically competitive firm? Explain.

A: Monopoly market structure is a single seller market structure. The characteristics of a monopolistic…

Q: Suppose that, due to a successful advertising campaign, a monopolistic competitor experiences an…

A: In monopolistic competition markets, there are a large number of firms competing with each other in…

Q: Classify the following markets as perfectlycompetitive, monopolistic, or…

A: Perfect competition is a market structure, which is characterized by a large number of buyers and…

Q: When firms are operating in a monopolistic competitive market,then ..

A: This is an imperfect type of competition. In this type of competition many producers in the market…

Q: Is the outcome in a monopolistically competitive market desirable from the standpoint of society?…

A: A monopolistic competitive market is the one where firms provide differentiated goods which makes…

Q: Assume a monopolistic publisher has agreed to pay an author 15 percent of the total revenue from the…

A: No, the publisher and the author will not charge the same price. In the case of the situation, the…

Q: Draw a diagram of the long-run equilibrium in a monopolistically competitive market. How is price…

A: In a monopolistic competitive market there are large number of firms selling similar but not…

Q: Monopolistic markets tend to operate with some excess capacity. Explain

A: Excess capacity refers to the difference between the optimum output and the actual output produced…

Q: Describe why monopolistically competitive firms find it important to establish brand loyalty. How…

A: Monopolistic competition refers to the market structure in which there are many sellers of a…

Q: In a perfectly competitive market, the demand curve is the marginal revenue curve. Is this the case…

A: Monopolistic competition is one of the imperfect competition with large number of producers selling…

Q: Suppose that, due to a successful advertising campaign, a monopolistic competitor experiences an…

A: Monopolistic competition refers to an imperfect market structure, in which many firms sell…

Q: What gives firms market power in an industry characterized by Monopolistic Competition?

A: Monopolistically competitive firms have one trademark that resembles an imposing business model (a…

Q: Define monopolistic competition.

A: Market structure: It is the nature and degree of competition in the market for goods and services.…

Q: Explain how monopolistic competition is different from perfect competition and monopoly in both the…

A: There are four types of market namely, perfect competition, monopolistic competition, monopoly and…

Q: Will there be profits in the long run in a monopolistically competitive market? Explain your answer.

A: The market refers to a place where the buyers, and sellers interact. In a market, the buyers…

Q: Explain whether a monopolistically competitive firm is able to achieve social efficiency in the…

A: Social efficiency has two parts: Allocative efficiency, where Price equals MC, and Productive…

Q: does a monopolistic competitor produce too much or too little output compared to the most efficient…

A: A monopolistic market is characterized by many sellers selling differentiated products, imperfect…

Q: The accompanying graph depicts average total cost (ATC), marginal cost (MC), marginal revenue (M),…

A: The profit is maximum at MR=MC where Q=50 and P=30 ATC=25

Q: Explain the profit-maximizing output level and profit of a monopolistic firm by drawing a graph.

A: Monopoly exists when a firm or an individual is  only seller of the comodity, good or service. A…

Q: How does the short run differ from the long run in a monopolisticallycompetitive market?

A: A form of inconsistent competition is monopolistic competition so that multiple suppliers market…

Q: What is the relationship between product differentiation and monopolistic competition? Or is there a…

A: There exist a relationship between monopolistic competition and product differentiation.

Q: Will there be profits in the long run in a monopolistically competitive market?

A: A monopolistically competitive market is the market structure in which characteristics of both a…

Q: What type of product by individual firms are in a monopolistic competition and how is the ease of…

A: Monopolistic competition is a form of market where there are many firms which provides similar…

Q: Draw the diagram for a monopolistically competitive firm in long-run equilibrium

A: There are many firms in the monopolistically competitive market. All firms produce the close…