9 In the monopolistic competition modela. firms are price takersb. none of these.O c. one dominant firm acts as the monopolist that is followed by the fringe of competitors.d. barriers to entry maintain some monopoly "rents" in the long run. In the price-leadership model,O a. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions.Ob.firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for theirproduct.O c each firm acts as a price taker.O d. firms coordinate their decisions to act as multiplant monopolies.

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In the monopolistic competition model a. firms are price takers O b. none of these. C. one dominant firm acts as the monopolist that is followed by the fringe of competitors. d. barriers to entry maintain some monopoly "rents" in the long run.

In the monopolistic competition model a. firms are price takers O b. none of these. C. one dominant firm acts as the monopolist that is followed by the fringe of competitors. d. barriers to entry maintain some monopoly "rents" in the long run.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.7P

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Question

In the monopolistic competition model
a. firms are price takers
b. none of these.
O c. one dominant firm acts as the monopolist that is followed by the fringe of competitors.
d. barriers to entry maintain some monopoly "rents" in the long run.

In the price-leadership model,
O a. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions.
Ob.
firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their
product.
O c each firm acts as a price taker.
O d. firms coordinate their decisions to act as multiplant monopolies.

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