In prices. market structure, firms sell differentiated products but due t A) a monopolistic competition B) an oligopoly a monopoly D a perfect competition
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In prices. market structure, firms sell differentiated products but due t A) a
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- Question: Which of the following market structures is characterized by a large number of firms, homogeneous products, free entry and exit, and perfect information? a) Monopoly b) Oligopoly c) Monopolistic competition d) Perfect competition Please give me correct answer and full explanation. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.Though Pepsi Company is a giant in the soft drinks industry, it faces tough competition in the market as there are many firms operating in this industry with differentiated products. Further, the company is spending a considerable amount as selling cost in order to increase its market share in the industry. Determine in which type of market structure the Pepsi Company is operating? a. Monopoly market b. Monopolistic competition c. Perfect competition d. Oligopoly marketIn what sense do monopolistically competitive firms have market power? Question 1Answer a. Firms in the long run will earn zero economic profits b. The demand curve that a typical firm faces is negatively sloped c. Because of brand loyalty, a firm can raise the price of its product without worrying that any of its customers will switch to buy other similar brands d. All of the answers are correct
- This is a Microeconomics problem. (a) Give 2 reasons why the market structure of monopolistic competition may not necessarily require government regulation the way a monopoly market would. (b) What is a reaction curve in an oligopolistic market? (c) Describe the Stackelberg model and explain how the first mover in such a model gets an "advantage"?A small business owner analyzes how changes in the price of raw materials will affect the company's production costs and output levels. This scenario highlights the importance of understanding:A) Consumer preferencesB) The law of diminishing returnsC) Market demandD) Oligopoly behavior Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.Do an economic analysis of two giant competitor brands, Coke and Pepsi, in the context of them being rivals in the Twenty-First Century and use all the knowledge you have gathered over the last several weeks. Please do not make it a financial case. It is to be an economics case study, utilizing the economic model of pure competition, monopolistic competition, oligopoly or monopoly.
- True / False questions. For each of the following questions indicate true or false. Do NOT explain. In monopolistic competition market there are barriers to entry…….. Short run supply curve of a competitive firm is the part of its marginal cost curve that lies below its average variable cost curve……….. When long run average cost increases with scale of production, a firm faces economies of scale…….. In the long run, in a perfectly competitive market firm has a positive economic profit….. Rising marginal cost intersects average variable cost(AVC) at the minimum point of AVC…… Total product is maximum at the maximum point of marginal product….. Marginal utility curve is a graph shows all the combinations of goods and services that can be produced if all of society’s resources are used efficiently…… Indifference curve is a set of points, each representing a combination of some amount of good X and some amount of good Y, that all yield the same amount of total utility…..Question 1a. With the aid of a diagram explain how a monopolist determines how muchoutput to produce and what price to charge. [4 marks]b. Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run. [4 marks]c. Explain why firms operating in monopolistically competitive markets probablywill not earn an economic profit in the long run. [4 marks]d. Why does interdependence of firms play a major role in oligopoly but not inperfect competition or monopolistic competition? [4 marks]Identify a perfectly competitive, monopolistically competitve, oligopoly, and monopoly firm that you have recently purchased a good/service from. Make sure to relate your answers to the market characteristics. Analyze why a perfectly competitive firm is only able to earn normal profits in the long run compared to the short run.
- For market failure unit (market power). In the long run graph for monopolistic competition, firms are no longer earning abnormal profit due to low barriers to entry as there are more similar goods on the market, lowering demand, causing them to earn normal profits, however, shouldn't that cause MR to be equal to AR (demand curve), similar to the normal profit in perfect competition? Why is MR less than AR here when it is earning normal profit?True / False4. Advertising must be socially wasteful because advertising simply adds to the cost of producing a product.5. In the long run, firms in monopolistically competitive markets produce at the minimum of their average total cost curves.Statement refers to partial equilibrium model of monopoly and oligopoly. In an industry with a single producer of a good, an increase in the number of firms operating in that industry (due to trade) will benefit the consumers, is this true, false or uncertain
