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- Which of the following is shared by both monopolistically competitive markets and prefectly competitive markets?What do economists mean when they say that competitive markets are more efficient than monopolistic markets? Monopolistic markets result in lower price and higher production Competitive markets result in lower prices, monopolistic market result in higher production Competitive markets result in lower costs, lower prices, and higher levels of production Easy entry and exitImagine a scenario in which the fashion industry is suffering from monopolistic price gouging and a dwindling demand
- Is the outcome in a monopolistically competitive market desirable from the standpoint of society? Can the government improve on the market outcome?List and explain the three kinds of pricing methods. Give an advantage and a disadvantage for each method.In the long run, monopolistically competitive firms will charge price
- In which situation at the following, _______ is the market dominated by only one seller/company? Pure monopoly Monopolistic competition Oligopolistic competition Pure competition Free marketWhy do some restaurants charge very high prices for wine, drinks and bottled water and yet quite reasonable prices for food?From the following graph, show the equilibriums under each scenario. Market is in equilibrium at A under competitive market. (a) Show the equilibrium under monopoly. Call this point B (b) When the demand increased in the area due to immigration, show the new competitive equilibrium, call this point C. (c) Show the new monopolistic equilibrium with increased demand and call this point D.