The larger the number of firms in a monopolistic competition situation, a. the lower is the average cost of a firm. b. the higher is the marginal cost. c. the fewer varieties are sold. d. the lower is the price charged
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The larger the number of firms in a
a. the lower is the average cost of a firm.
b. the higher is the marginal cost.
c. the fewer varieties are sold.
d. the lower is the
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- Which of these markets is most likely to be identified as monopolistic competition? Group of answer choices a. shoes b. corn c. gasoline d. shoes, corn and gasoline are all like monopolistic competition1. A monopolistic competitor engages in advertising to a. Provide information about its good or product. b. Differentiate its product from those if its rivals. c. Increase the demand for its good or service. d. All of the above. 2. Which of the following advertisements provides information to the consumer? a. “CarbChips have half the carbohydrates of regular potato chips”. b. “The Taj Mahal restaurant is like a trip to India”. c. “Brain-power Books – just think it!” d. “Avion Airlines wants to take you higher”. 3. Firms in an Oligopoly produce a quantity of output that is less than the level produced by a perfectly competitive market and charge a price that is greater than the perfectly competitive price. a. True b. FalseWhat 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
- Comparing a perfectly versus monopolistic competitive market, in the long run what happens to prices and profits? a) Has equal profit and higher prices b) Has equal profit and lower prices c) Has equal profit and equal prices.What is Perfect Competition and how does it work? What is Monopolistic Competition and how does it work?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 sellers.c. Firms can enter the market selling similar but not identical productd. (b) and (c)e. all of the above
- Exercise A.7. If you were thinking about getting into the ice cream business, would you try to make an ice cream exactly like the (successful) brands that already exist? Explain your decision using the ideas about monopolistic competitionMonopolies and Monopolistic Competition How are monopolies and monopolistic competitive firms profitable? Use examplesExplain monopolistic competition. How is it similar to perfect competition? How does it differ from perfect competition?
- Draw the diagram of a firm in monopolistic competition that is in the long run and another diagram for a monopoly firm making profits draw the diagrams and explain pleaseGive an example of a market that has monopolistic competition and explain how the example you have chosen exhibits competitive aspects and how it also exhibits monopolistic aspects.Studying for an exam. Can you should me how to diagram a monopolistic market at (1) equilibrium, (2), experiencing economic loss, and (3) experiencing economic gain? And how free entry and exit affects profits and losses?