5.We are more tolerant of the deadweight loss from monopolistic competition than that ofmonopoly because monopolistically competitive firmsHave a smaller deadweight lossMake zero profit in the long runCharge less than the profit-maximizing priceProduce a differentiated productа.b.C.d.

In monopoly and monopolistic competitive firm, profit is maximised at a point where marginal revenue…

We are more tolerant of the deadweight loss from monopolistic competition than that of monopoly because monopolistically competitive firms 5. a. Have a smaller deadweight loss b. Make zero profit in the long run c. Charge less than the profit-maximizing price d. Produce a differentiated product

We are more tolerant of the deadweight loss from monopolistic competition than that of monopoly because monopolistically competitive firms 5. a. Have a smaller deadweight loss b. Make zero profit in the long run c. Charge less than the profit-maximizing price d. Produce a differentiated product

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 3PA

See similar textbooks

Related questions

Q: Consider the table. Shirts Pants Year Price Quantity Price Quantity 2013 $5.50 1500 $10.00 5000 2014…

A: Nominal GDP is calculated by multiplying the price with the quantity of all goods and services…

Q: 2. Activities incduded (and not included) in the calculation ofGDP The gross domestic product (GDP)…

A: The components of aggregate demand are consumption, indecent, government spending and net exports.

Q: and your spouse are in good health and have reasonably secure jobs. Each of you makes about $45,000…

A: DINK full form is double income, no kids.

Q: Which of the following factors would economists consider "key" to economic development? Select one:…

A: Economic development is different for different nations, it could be defined as an increase in…

Q: If there is a decrease in inflation what happens to aggregate supply. Aggregate demand would shift…

A: An decrease in the average price level of an economy is termed as deflation or decrease in…

Q: Would increasing the minimum wage force business's to lay off workers and result in higher…

A: Minimum wage act: - it ensures the minimum amount of wage for workers. Unemployment: - unemployment…

Q: What is the biggest industry today.

A: An industry is known as the branch of economy that produces raw material, goods, or other services…

Q: How is migration measured

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: 1. Using general equilibrium analysis, and taking into account feedback effects, analyze the…

A: The market is in equilibrium when demand and supply are in balance (equal). To put it another way,…

Q: Currency $150 billion Bank reserves $400 billion $1,200 billion $2,400 billion $60 billion Checkable…

A: * SOLUTION :-

Q: QUESTION 3 Use the figure below to answer the following questions: Price and cost (dollars per tonne…

A: The graph shows that there is the presence of negative externality. There will be over production of…

Q: Question 4 Alpha Inc. and Beta Corp. compete in the market for smallgoods (processed meats). The…

A: "A best response function is a function which shows profit maximizing output of one firm given the…

Q: A sharp stock market decline increases moral hazard incentives 1) since lending firms have less to…

A: Financial Crisis is the major disruption in the market which is expressed by decline in the prices…

Q: Consider an equilibrium of a single product market jointly determined by a supply function q* = a, +…

A: Given information Supply function q*=a0+a1*p*+u Demand function q*=b0+b1*p*+v q*= equilibrium…

Q: What are the positive and negative effects of migration in a particular country?

A: An economic migrant refers to someone who emigrates from one location to another, even across…

Q: 1. Strictly diminishing marginal pain from losses implies what about the slope of the value function…

A: In economics, the marginal gain or loss from an activity explains an additional in th original gain…

Q: Consider the game having the following normal form. Which of the following strategies of the column…

A: We need to check the dominant strategy for column player so we do not want the payoffs of row…

Q: Assume that you are managing an electric utility that must minimize the cost of producing the…

A: Energy consumption is increasing day by day, in order to meet the demand there is a need to focus on…

Q: If real GDP in the year 2000 was 100 and the growth rate is 5 per cent per annum what will be the…

A: The formula: Real GDP after n th year=real GDP now *(1+g)n n=years=2100-2000=100 years g=growth rate…

Q: Overview of the Macroeconomy and Industry.

A: Macroeconomics related to aggregate economic variables. Macroeconomics focuses on the performance of…

Q: A debt instrument sold by a bank to its depositors that pays annual interest of a given amount and…

A: A debt instrument is a holder's asset with a fixed payment of interest and principal at maturity.…

Q: Is Bitcoin legal tender anywhere in the world? Explain and cite your source?

A: Concept The digital money is a peer-to-peer system. Bitcoin first appeared in 2009, introduced the…

Q: How does the demographic transition develop

A: Demography refers to the concepts and methods used to examine human populations.

Q: For a seller, which of the following is NOT positively related? O The price of the good and the…

A: Keeping everything the equivalent on the off chance that the cost of production rises, the profit of…

Q: A Production Possibilities Frontier shows Group of answer choices all the combinations of two goods…

A: Production Possibilities Frontier (PPF) is also known as the Production Possibilities Curve (PPC).

Q: The time to assemble the first unit on a production line is 17 hours. The learning rate is 0.89.…

A: First Unit (T1) = 17 we need to find T7 According to Learning curve formula, Yx = kxnThe assembled…

Q: Differentiate among the basic measures of urbanization.

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: 1. Imagine that the markup practiced by firms in an economy is 5% The degree of the protection of…

A: Wage setting Relation : W = Pe F(u , z ) where , F(u , z ) = 1 + au + z (a = d(W)/du , slope…

Q: Given the cash flow diagram, compute P. Choose your final answer from below while still showing your…

A: Cash flow is the movement of money in and out of a company. Cash received signifies inflows, and…

Q: the marginal cost of production for laplops and printers is zero. arge only individual prices (not…

A: Question solved below,

Q: This is a symptom of a recession: Real salary increases Promotions occur and bonuses increase O…

A: Recession refers to a period of time when GDP declines for two consecutive quarters.

Q: Money demand curve is downward sloping because as interest rate rises, businesses find it less…

A: The curve that depicts the inverse relationship between the rate of interest and the quantity of…

Q: If the equilibrium GDP is 4000 billion, full employment GDP is 5000 billion, marginal prosperity to…

A: Marginal propensity to consume (MPC) = 0.80Spending multiplier = 1(1-MPC) = 1(1-0.80) = 10.2 =5…

Q: If the United States could produce five televisions per hour of labor and China could produce three…

A: Here, it is given that the US can produce 5 television and China can produce 3 television with the…

Q: How to calculate the economic impact of an event?

A: Employment, household wages, economic production, and value added are four common indicators used to…

Q: The following data outline production choices (A or b. in two nations, Gamma and Sigma. Each nation…

A: Given Production choices Gamma A B Tea 120 0 Pot 0 120 Sigma A B Tea 40 0 Pot 0…

Q: Canada is both an importer and an exporter of cars. If Canada exports more cars than it imports and…

A: The ratio of a country's export and its import prices is referred to as terms of trade (TOT).To buy…

Q: If the surplus on income ratio is only 15%, and the surplus on fund employed is only 26%. Is this…

A: Labor surplus means the surplus of labor in an economy. It means there is more quantity of labor…

Q: Question 12 In the long run, a monopoly A may earn positive economic profits due to entry barriers.…

A: Monopoly is defined as a market structure where there is only single seller of the product who has…

Q: Fixed rate policy Suppose that the target is 80 US cents per Canadian dollar. 1. If the demand for…

A: It refers to the rate at which currency of one nation can be exchanged to the another. In other…

Q: If Volkswagen, a German company, sells a euro-denominated bond in London, the bond is a O 1)…

A: Because of this, it is a means of taking loans that can be shown not only in domestic currency, but…

Q: Discuss two (2) cases of price elasticity of demand. Use diagrams to motivate your answer.

A: Below is the formula for price elasticity of demand: Ep = dQ/QdP/P

Q: The Flynn manufacturing company is undergoing a review by the board of regents for expounding their…

A: The net present value is the best alternative approach for calculating the dynamic calculations of…

Q: Mr. Cruz invested P 20,000 for 1 year at 12% compounded monthly. At the end of 1 year, he reinvested…

A: P = 20,000 r = 12% = 0.12 t = 1 year n = 12 Compounded monthly = P(1+r/n)nt…

Q: Refer to the IS-LM-BP model for an open economy. 7.1. Draw a diagram that typically illustrates the…

A: All part solved below,

Q: If C(x) = 19,000 + 400x – 3.6x2 + 0.004x³ is the cost function and p(x) = 1,600 – 9x is the demand…

A: Given: TC(x)=19,000+400x-3.6x2+0.004x3 P(x)=1,600-9x Now, TR=P×Q TR=(1600-9x)x (where x is…

Q: True or false. I need help with both. Commodity money is money that has no intrinsic value. True…

A: The economics as a study is based upon the basic idea that the resources which the economies have…

Q: 5. Saving and net flows of capital and goods In a closed economy, saving and investment must be…

A: Aggregate output is the sum of consumption, investment, government spending and net exports in an…

Q: suggest ways on how you can contribute to reduce the effect of inflation

A: The economies, and the nations around the globe are involved in various financial, and economic…

Q: Demand pull inflation and cost push inflation are the two causes of inflation. The government of…

Question

5.
We are more tolerant of the deadweight loss from monopolistic competition than that of
monopoly because monopolistically competitive firms
Have a smaller deadweight loss
Make zero profit in the long run
Charge less than the profit-maximizing price
Produce a differentiated product
а.
b.
C.
d.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.