Lesson 5.12 - Comparison of Perfect Competition and Monopolistic Competition 1. states that a monopolistic competitor in equilibrium produces an output smaller than the one that would minimize its costs of production. 2. The perfectly competitive firm produces a quantity of output consistent with lowest 3. The monopolistic competitor is said to 4. The monopolistic competitor operates at excess capacity as a consequence of its demand curve, which is a consequence of 5. A monopolistic competitor charges P its plant size or to have excess capacity. sloping products. MC, which means it is not efficient. Also, A monopolistic competitor charges P means it operates at excess capacity and, therefore, is not efficient. lowest ATC, which

Lesson 5.12 - Comparison of Perfect Competition and Monopolistic Competition 1. states that a monopolistic competitor in equilibrium produces an output smaller than the one that would minimize its costs of production. 2. The perfectly competitive firm produces a quantity of output consistent with lowest 3. The monopolistic competitor is said to 4. The monopolistic competitor operates at excess capacity as a consequence of its demand curve, which is a consequence of 5. A monopolistic competitor charges P its plant size or to have excess capacity. sloping products. MC, which means it is not efficient. Also, A monopolistic competitor charges P means it operates at excess capacity and, therefore, is not efficient. lowest ATC, which

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 11PAE

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What does the income elasticity of demand measure? a ) The responsiveness of quantity demanded to changes in price b ) The responsiveness of quantity demanded to changes in income c ) The responsiveness of supply to changes in price d ) The responsiveness of supply to changes in income Which of the following is a characteristic of a monopolistic competition market structure? a ) Many buyers and many sellers with identical products Give me correct answer with full explanation and calculation otherwise i give downvote 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.
WataDine is one of a city’s many restaurants that serve lunch and dinner in a monopolistically competitive market. Assume WataDine, as a typical restaurant in the city, is currently producing the profit-maximizing output level, and earns positive short-run economic profit. (a) How is monopolistic competition similar to each of the following market structures? (i) Perfect competition (ii) Monopoly (b) WataDine is currently earning short-run economic profits. Draw a correctly labeled graph for WataDine in short-run equilibrium and show each of the following. (i) The profit-maximizing quantity, labeled QM (ii) The profit-maximizing price, labeled PM (c) Given that WataDine is currently earning short-run economic profits, what will happen to each of the following in the long run? (i) WataDine's economic profit. Explain. (ii) WataDine's demand curve for its restaurant meals. (d) Assume WataDine is in long-run equilibrium. (i) Is WataDine taking advantage of its economies of scale? Explain.…
WataDine is one of a city’s many restaurants that serve breakfast, lunch, and dinner in a monopolistically competitive market. Assume that WataDine, as a restaurant in the city, is currently producing the profit-maximizing output level, and earns positive short-run economic profit. (a) How is monopolistic competition similar to each of the following market structures? (i) Perfect competition (ii) Monopoly (b) WataDine is currently earning short-run economic profits. Draw a correctly labeled graph for WataDine in short-run equilibrium and show each of the following. (i) The profit-maximizing quantity, labeled Qm (ii) The profit-maximizing price, labeled Pm (c) Given that WataDine is currently earning short-run economic profits, what will happen to each of the following in the long run? (i) WataDine's economic profit. Explain. (ii) WataDine's demand curve for its restaurant meals. (d) Assume WataDine is in long-run equilibrium. (i) Is WataDine taking advantage of its economies of scale?…
For each of the following characteristics, say whether it describes a monopolistic competitive or oligopoly market, both or neither. There is a single model to explain the firm's behavior. Firms in this market produce the socially efficient level of output. Firms make zero economic profit in the long run. Market is dominated by a few firms. Strategic behavior is very important. EditViewInsertFormatToolsTable 12pt Paragraph
Compare the elasticity of the monopolistic competitor’s demand with that of a pure competitor and a pure monopolist. Assuming identical long-run costs, compare graphically the prices and outputs that would result in the long run under pure competition and under monopolistic competition. Contrast the two market structures in terms of productive and allocative effifi ciency. Explain: “Monopolistically competitive industries are characterized by too many firms, each of which produces too little.”
1. In the monopolistic competition model, a firm's (using a technology with increasing returns to scale as described in class) average costs of production depend on ______? 2. If a firm (using a technology with increasing returns to scale as described in class) charges a price equal to ________, then profit will be ________. 3. The linear demand curve for the monopolistic competition model implies that if a firm's price is _______ the industry average, its quantity sold will be ______ the industry average.
1.The detergent market is an example of an industry in monopolistic competition. Although there are many sellers like in perfect competition, the types of products that each firm sells are:a) inexpensiveB)efficiently produced c)differentiated D)identical 2.The demand curve as perceived by a monopolistic competitor is ____________. A)upward sloping B)downward sloping c)U-shaped D)flat 3.A market structure where only a few large firms dominate an industry is called: A)Monopolistic Competition B)Oligopoly C)Monopoly D)Perfect Competition 4.In many cases, governments allow electricity distribution firms to charge households based on costs incurred and a level of profit set by regulators. This type of regulation is called: A)regulatory capture B)antitrust laws C)cost-plus regulation D)price cap regulation
Question 20 In the market for a brand name medicine with a single company selling the medicine, that company is a_______Eventually, the government lets other companies sell the medicine as a "generic" alternative to the brand name. The effect of this increased competition is to_______ the medicine's price.O. monopoly, decreaseO. oligopoly, decreaseO. monopoly, increaseO. oligopoly, increase
The market for peanut butter in Nutville is monopolistically competitive and in long-run equilibrium. The following graph shows the marginal-cost (MC) curve and the average-total-cost (ATC) curve for a peanut-butter-producing firm. It also shows the demand curve and marginal-revenue (MR) curve faced by a firm operating in a monopolistically competitive environment. On the following graph, use the black point (plus symbol) to show the profit-maximizing output and price for a typical firm operating in a monopolistically competitive environment.
A monopolistically competitive firm produces ________ output than a perfectly competitive firm with the same cost curves.The resulting equilibrium price under monopolistic competition is ________ than the equilibrium price under perfect competition. Question 1Answer a. more; lower b. less; higher c. less; lower d. more; higher
1) A supermarket offers one bag of peanuts for $3.5 and three bags of peanuts for $10. What type of price discrimination is this supermarket engaging in? pick one: cartel price discrimination first-degree price discrimination third-degree price discrimination second-degree price discrimination perfect price discrimination 2) The short-run equilibrium for a monopolistically competitive firm is at price equals $21, average total cost equals $27, and marginal cost equals marginal revenue equals $18. Which of the following is true? pickone: The firm could decrease the price and increase profits. The firm could increase the price and increase profits. The firm is operating in the upward-sloping portion of the average total cost (ATC) curve. Some firms will leave this industry. More firms will be attracted into the industry.
Explain any four features of the monopolistic competition in the economy