which market structure(s) might firms produce a homogeneous product? Answer a. perfect competition only. b. monopoly only. c. monopolistic competition only. d. perfect competition and monopolistic competition. e. perfect competition and oligopoly.
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- Evaluate the model of Monopolistic Competition. What are the key assumptions? Do you think this model is useful for explaining many "real world" businesses? Why or why not? How does it compare in this regard to the models of perfect competition and monopoly?3. In the long run, firms operating in perfect competition and monopolistic competition will tend to earn normal profits. True or False? Why?This is a Microeconomics problem. (a) Give 2 reasons why the market structure of monopolistic competition may not necessarily require government regulation the way a monopoly market would. (b) What is a reaction curve in an oligopolistic market? (c) Describe the Stackelberg model and explain how the first mover in such a model gets an "advantage"?
- Q2. Which model's equilibrium price and quantity most closely matches perfect competition? a. Bertrand Competition with Identical Goods b. Stackelberg Duopoly c. Monopolistic Competition d. Cournot Oligopoly. Which market condition (Monopoly, Perfect Competition, Duopoly, or monopolistic competition) is good for customers and why? Illustrate your choice with an appropriate scenario66. In monopolistically competitive markets which is the most likely type of barrier to entry: A. heavy fixed costs. B. legal barriers. C. ownership of a key resource used to produce a good or service. D. high expenditures on advertising and product promotion. E. none of the above.
- For market failure unit (market power). In the long run graph for monopolistic competition, firms are no longer earning abnormal profit due to low barriers to entry as there are more similar goods on the market, lowering demand, causing them to earn normal profits, however, shouldn't that cause MR to be equal to AR (demand curve), similar to the normal profit in perfect competition? Why is MR less than AR here when it is earning normal profit?3 The options are oligopoly, monopolistic competition, pure monopoly, and perfect competitionwhy is the restaurant industry is often used as an example of the market structure of monopolistic competition. How does this affect the long and short run? address all aspects and assumptions of the model of monopolistic competition
- Consider perfect competition and monopolistic competition. In which market structure(s) will we see price equal to marginal cost at the last unit produced in the long-run equilibrium? a perfect competition b monopolistic competition c both perfect and monopolistic competition d neitherWhich 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 competition2.Consider the markets for pizza delivery services in Vienna, hotel accommodation in Krems and train travel in Austria. Define the market types perfect competition, oligopoly / monopolistic competition and monopoly and classify the given examples accordingly. Explain your reasoning in a few sentences.