One difference between perfect competition and monopolistic competition is that A) monopolistic competition has barriers to entry. B) firms in monopolistic competition face a downward-sloping demand curve. C) a perfectly competitive industry has fewer firms.D) in perfect competition, firms produce slightly differentiated products.

One difference between perfect competition and monopolistic competition is that A) monopolistic competition has barriers to entry. B) firms in monopolistic competition face a downward-sloping demand curve. C) a perfectly competitive industry has fewer firms.D) in perfect competition, firms produce slightly differentiated products.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 17P

See similar textbooks

Similar questions

One difference between perfect competition and monopolistic competition is that A) monopolistic competition has barriers to entry. B) firms in monopolistic competition face a downward-sloping demand curve.C) a perfectly competitive industry has fewer firms.D) in perfect competition, firms produce slightly differentiated products. he MC curve reaches its minimum point before the AVC curve and the AC curve. In addition the MC curve intersects the AVC curve and the AC curve at their lowest point. The above statements are both true Often Always Sometimes Never At the point of producers equilibrium The MRTSLK equals PL/PK MPL/PL = MPK/PK All of the above The Iso-quant is tangent to the Iso-cost
Which of the following conditions does NOT describe afirm in a monopolistically competitive market?a. It sells a product different from its competitors.b. It takes its price as given by market conditions.c. It maximizes profit both in the short run and inthe long run.d. It has the freedom to enter or exit in the long run.
How might a monopolistically competitive firm continually earn economic profit greater than zero? To earn economic profit greater than zero, a monopolistically competitive firm must A. be the first firm to enter a market to obtain first-mover advantages. B. eliminate excess capacity by producing at minimum average cost. C. rely on chance events. D. differentiate its product and produce at lower average cost than competitors. E. block entry of new firms with government-enforced patents.
The demand and total cost functions for a monopolistically competitive market are: Q(P) = 300/N – P, where N = number of firms TC(Q) = 50 + Q2 There are currently three firms in this market and they are in a short run equilibrium. c) In the long run, how many firms are in the market (round to the nearest integer)?
Question 2, Multiple Choice A monopolistic competitor has the following information about cost and demand.