Answered: What are the characteristics of EACH of…

What are the characteristics of EACH of the TWO market structures? Characteristic Perfectly competitive market and Monopoly market Barriers to entry Control over price Number of firms

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 4.12P

See similar textbooks

Related questions

Q: The following determine industry structure except A. The number of firms in an industry…

A: The number of firms in an industry will determine industry structure. Because if number of firms…

Q: Answer the following questions based on the information provided. a. The on-demand video industry is…

A: a. From the above graph, we can say that the top three firms have 93% market power of an on-demand…

Q: A firm in a perfectly competitive industry maximizes profits at Q=100. Its fixed costs increase.…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: There are various market kinds in the market structure where each type of market has its own…

A: The markets are the place where the buyers and sellers tend to meet and interact with each other.…

Q: Comparing a perfectly competitive market to a monopoly, which of the following is true? a.…

A: A market is a place where the buyers and the sellers interacts with each other and the exchange of…

Q: Which of the following must be present for a firm to maintain its market power for an extended…

A: Firm market power means the firm's price, market share, and profit.

Q: A characteristic of the monopoly market structure is options: marginal revenue is greater than…

A: Monopoly is a type of market structure in which there exists only firm in the market. One buyer has…

Q: Identify which market structure the following products are likely to fall under based on the…

A: Market structure, basically refers to the structure that classify different industries according to…

Q: Market power is quite common. Many industries only have a few producers such that each producer has…

A: Price discrimination is the practice of charging different customers for the same product or service…

Q: Which of the following is NOT one of the three primary determinants of market structure? A.…

A: Market structure can be defined as the market characteristics. There are four major types of market…

Q: Another solution for antibiotic resistance is the development of new drugs that defeat resistant…

A: A concentrated industry generally has few large companies with high market shares. These type of…

Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…

A: A dominant firm is one that occupies a large portion of this market and has a larger market share…

Q: List and then describe the four market structures. Include significant areas of identification…

A: Suppliers have the ability to trade with one another, which is one of the features of a free-market…

Q: Which form of market structure is characterised by interdependence in decision-making as between the…

A: To find: Which form of market structure is characterised by interdependence in decision-making as…

Q: Complete the information below on the four different market structures covered in class.…

A: market type number of seller market information entry restrictions price decision product type…

Q: List and then describe the four market structures we comapred and contrasted in class lectures.…

A: In economics a market can be defined as the sum total of all the buyers and sellers in a specific…

Q: Market structure consists of different kinds of markets where type of market has its own…

A: The market is a place where service and product transactions take place. In making decisions, it is…

Q: Provide a comparison of the four studied market structures by completing the entries on the…

A: In perfectly competitive market, there are many sellers selling identical goods. Firms do not have…

Q: Which of these situations is likely to produce a monopoly market structure? Group of answer…

A: Monopoly is the form of market where there is only single seller in the market for specific…

Q: equilibrium in a market supplied by a monopoly? Group of answer choices A. The output & price…

Q: A market consists of a dominant firm and a number of fringe firms. The followings are the…

A: If the market consists a dominant firm, the firm will behave like monopoly as it has large market…

Q: What term refers to companies shaping their actions based on what their competitors do? allocative…

A: In a market, sometimes the decisions of the firms are not completely based on their own cost and…

Q: Question 2 Free entry means that Group of answer choices the government pays any entry costs for…

A: Free entry and exit generally exists in the market structure where there is high competition among…

Q: Ques : Total industry sales are $105 million. The top four firms account for sales of $15%, 12%,…

A: In economics, there are four types of market structure and they are Perfectly competitive market…

Q: ontrast Market concentration and market competition on a spectrum of market structures and recommend…

Q: A market structure that is “monopoly” is NOT ... Group of answer choices a. production efficient…

A: Monopoly is the example of imperfect competitive market structure where only single seller sale the…

Q: market consists of a dominant firm and a number of fringe firms. The followings are the information…

Q: Price is set in a market by a dominant firm

A: P = 10,000 - 20QT 20QT = 10,000 - P QT = 500 - 0.05P The competitive fringe supply is SF = P = 100 +…

Q: Illustrate demand curves facing individual firms for four (4) of the market structures

A: A demand curve is a curve which shows the relationship between price of a good or a service and its…

Q: For each of the following scenarios, identify the number of firms present, the type of product, and…

A: In a market economy, there are four sorts of markets. The classifications are created depending on…

Q: Limiting Market Power: Regulation and Anti-Trust Predatory pricing threatens to keep competitors…

A: In a market, a firm uses predatory pricing strategy to gain market power by threatening existing…

Q: Which of the following is true? When the marginal cost is greater than the average cost, there…

A: When any of the firms has the market power, that market is considered as imperfect market as there…

Q: For each of the following scenarios, identify the number of firms present, the type of product, and…

A: The major market forms according to the degree of competition can be listed as follows: Perfect…

Q: Find an example of consumer product market that fits John Sutton’s theory of the domination of…

A: A clear example of John Sutton’s theory is that the smartphone industry. Apple dominates this…

Q: Which of the following is true? When the marginal cost is greater than the average cost, there are…

A: Economic rent is the price firm is willing to pay for input less than the minimum price required to…

Q: Consider two Stackelberg firms, Firm Alpha and Firm Omega, each with marginal costs of 50 and each…

A: Now, To find the quantity produced for each firm, we solve this Stackelberg Problem: The total…

Q: monopoly market characteristics

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Differentiate the four types of market structures regarding to the number of sellers and pricing…

A: Meaning of Market: The term market refers to the situation under which the producers or the sellers…

Q: From the bank of terms match the letter that corresponds to the appropriate concept/description.…

A: The above terms are related to the various forms of market like perfect competition and monopoly. In…

Q: Provide a comparison of the four studied market structures by completing the entries on the…

A: There are four different market structures with perfect competition, imperfect competition and no…

Q: Which of the following is not an example of an entry barrier? Group of answer choices Capital…

A: Entry barrier refers to the factor that discourages the firm to enter the market. Barriers to entry…

Q: Compare and contrast the operations of the various market structures

A: Market structure differs because of the different number of firms present in the market, different…

Q: Analyse how the S-C-P approach predicts performance (welfare) based on market structure and explain…

A: The S-C-P method predicts performance depending on market structure by analyzing businesses'…

Q: In some countries, brand name fast-food restaurants are not allowed to operate. Such restrictions…

A: A Trade restriction can likewise be utilized to give a bit of leeway to a domestic producer over a…

Q: How do firms that compete in four different markets structures determine profitability

A: Four different markets structures:- Perfect competition monopoly monopolistic competition Oligopoly…

Q: Monopoly outcome versus perfectly competitive outcome Consider the daily market for hot dogs in a…

A: A perfect market, sometimes known as an atomistic market, is characterized by numerous idealizing…

Question

What are the characteristics of EACH of the TWO market
structures? Characteristic Perfectly competitive market and Monopoly market
Barriers to entry
Control over price
Number of firms

Video Video

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

Introduction

VIEW

Answer

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.

Similar questions

In recent years bubble tea has become a craze among Singaporean consumers, leading tomany new firms entering this market either as new Singaporean startups or as establishedfirms from aboard. There are now over 50 competitors in Singapore each of which sell theirown variations of bubble tea with different flavours, colours, ingredients and packaging.Using the theory and models of market structure, examine this industry. Should governmentbe worried about any aspect of how an industry with this market structure will perform?
List and then describe the four market structures we comapred and contrasted in class lectures. Include significant areas of identification (number of firms in the structure, barriers to entry, etc) for each structure. Also include specific characteristics that may make the market structure unique.
Comparing a perfectly competitive market to a monopoly, which of the following is true? Group of answer choices Price will be higher than marginal cost in the perfectly competitive market but will beequal to marginal cost in the monopoly. Price will be equal to marginal revenue in the perfectly competitive market but will behigher than marginal revenue in the monopoly. at that point on the market demand curve which intersects the marginal cost curve. Price will be higher and quantity will be lower in the perfectly competitive market than inthe monopoly.
In the mobile phone market, Samsung and Apple constitute a duopoly in the production of devices.The American firm has the following demand q_a = 10 - p_a + 0.25p_s, and the Korean firm, q_s = 20 -p_s+ 0.5p_a. Because both firms assembly their devices in China, their cost structure is the same andequal to ?(q) = 10q, answer the following questions.a) What would be the equilibrium (quantity, price, and profit) in this market, and interpret youranswer.b) If they decide to form a cartel, what are the new quantities, prices, and profits?
Product differentiation is an essential characterstics of oligipolistic market structures.do you agree?Explain
These are statements comparing monopoly with perfect competition. Which of the following statements is/are false? Select all that apply. A. A a perfectly competitive industry faces a horizontal straight line demand curve whereas a monopoly faces a downward sloping demand curve. B. A perfectly competitive firm faces a small fraction of the industry demand curve whereas a monopoly faces the entire market demand curve. C. A perfectly competitive firm can only set quantities; a monopoly can set both price and quantity, although once it chooses a price (quantity), the other variable, quantity (price), is determined by the demand curve it faces. D. A perfectly competitive equilibrium is efficient; a monopoly equilibrium is inefficient. E. A perfectly competitive firm necessarily earns zero economic profit in a long run equilibrium; a monopoly typically earns a super-normal profit in a long run equilibrium.
only typed answer The inverse demand for a homogeneous-product Stackelberg duopoly is P = 26,000 −4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and CF (QF) = 4,000QF. a. What is the follower’s reaction function? QF = − QL b. Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: c. Determine the equilibrium market price. $ d. Determine the profits of the leader and the follower. Leader profits: $ Follower profits: $
Reference the following information about the market demand function for questions 1 to 15. These questions are on different types of market structures – monopoly, perfect competition, Cournot oligopoly market, and the Stackelberg oligopoly market. The market demand function is given the following equation: P = 2000 – Q where Q is the industry’s output level. Suppose initially this market is served by a single firm. Let the total cost function of this firm be given the function C(Q) = 200Q. The firm’s marginal cost of production (MC) is equal to the firm’s average cost (AC): MC = AC = 200. What is the difference in the industry output levels produced by the perfectly competitive industry (Qc) and the monopoly (Qm) industry? Group of answer choices Qc - Qm = 900 units Qc - Qm = 1800 units Qc - Qm = - 900 units Qc - Qm = 600 units
Consider a two-firm duopoly facing a linear demand curve: P=1,600-Q. Assume MCA=MCB=AC=100 Where: P= Price Q= total output of the market, thus Q=QA+QB a. find the profit-maximizing output( cournot equilibrium output) b. find the cournot equilibrium price of firm A and firm B. 3. discuss how agricultural insurance could help farmers improve farm activity.
There are two firms, Firm 1 and Firm 2. The two firms’ products are viewed as identical by most consumers. The relevant cost functions are C(Q1) = 10 + 4Q1 and C(Q2) = 12 + 16Q2, and the market demand curve for product is given by P = 50 – 4Q. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round values if used to complete other calculations. Complete the following table. Q1 Q2 P Profits F1 Profits F2 Duopoly competition Collusion