The demand curve for a monopolistically competitive firm is downward sloping because Group of answer choices a. it is easy for firms to enter or exit the market b. there are a large number of firms c. the marginal cost rises as output produced increases d. the product is produced by using scarce resources e. the products produced by different firms are not identical

The demand curve for a monopolistically competitive firm is downward sloping because Group of answer choices a. it is easy for firms to enter or exit the market b. there are a large number of firms c. the marginal cost rises as output produced increases d. the product is produced by using scarce resources e. the products produced by different firms are not identical

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 5P

See similar textbooks

Similar questions

In what way(s) is a monopolistically competitive firm inefficient? Group of answer choices It charges a price lower than marginal cost. It produces where marginal revenue is equal to marginal cost. It does not produce at the minimum of its average cost curve.
What differentiates monopolistic competition from a monopoly?a A seller operating in a monopolistically competitive market no longar facet a downward-sloping demand curve,b. There are more seller,c. Firms can enter the market selling similar but not identical productd. (b) and (e)e. all of the above
\IV hat is true of a monopolistically competitive marketin long-run eqUilibrium?a. Price is greater than margi nal cost.b . Price is equal to marginal revenue.c. Firms make positive economic profits.d. Firms produce at the minimum of average total cost.
For a monopolistic competitor: choose correct and exlain your choice a. P = ATC in long-run equilibrium. b. P > ATC in long-run equilibrium. c. P = MR in long-run equilibrium. d. P = MC in long-run equilibrium.
If an industry is perfectly competitive or monopolistically competitive, then the government has relatively little reason for concern about a) the extent of competition. b) regulatory recapture. c) taking advantage of economies of scale. d) new ways of pleasing customers.
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
Imagine that in a certain industry (choose any) monopolistic competition is replaced by monopoly. a. As a result of what can this happen? Describe a possible scenario. b. Using demand, marginal cost, and marginal revenue graphs, show how this decrease in competition will change market prices. Make appropriate comments on the graphs, paying special attention to the direction of changes. c. Describe what changes may occur in the methods of competition if the firm becomes a monopoly
A monopolistically competitive firm has the following cost structure: Output 1 2 3 4 5 6 7 Total Cost($) 30 32 36 42 50 63 77 The firm faces the following demand curve: Price ($) 20 18 15 12 9 7 4 Quantity 1 2 3 4 5 6 7 To maximize profit (or minimize losses), the firm will produce Group of answer choices 2 units. 3 units. 4 units. 5 units.
Ugly Dolls Inc. (UD) is a firm in Mytown that sells its products on a market under monopolistic competition. The cost function of UD is represented by TC = 100+10Q. Lately, because of the UD is making a big amount of profit, some firms enter the market to compete. If the number of firms entering the dolls market increase, we know that, (a) The price of dolls will drop. (b) The average cost of UD will increase. (c) The quantity sold by UD will drop. (d) All the above answers are correct.
The theory of monopolistic competition predictsthat in long-run equilibrium, a monopolisticallycompetitive firm willa. produce at the level in which price equalslong-run average cost.b. operate at minimum long-run average cost.c. overutilize its insufficient capacity.d. None of the above answers are correct.