You run a company in a monopolistically competitive market. Why would you want to find ways to differentiate your product from the products of your competitors? Group of answer choices 1-To make your products more like those of your competitors. 2-To create a truly different product and exit the monopolistically competitive market. 3-To reduce production costs. 4-To set your product apart from the others, gain market share, and achieve economic profit.

You run a company in a monopolistically competitive market. Why would you want to find ways to differentiate your product from the products of your competitors? Group of answer choices 1-To make your products more like those of your competitors. 2-To create a truly different product and exit the monopolistically competitive market. 3-To reduce production costs. 4-To set your product apart from the others, gain market share, and achieve economic profit.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 2SQ

See similar textbooks

Similar questions

How does advertising impact monopolistically competitive firms? Group of answer choices 1-It either causes a firm’s perceived demand curve to become more elastic, or advertising causes demand for the firm’s product to increase. 2-It causes a firm’s perceived demand curve to become more inelastic. 3-Advertising expenses drive down average cost of production by increasing demand for the product and in turn increases total revenue. 4-Advertising always causes monopolistically competitive firms to experience lower average costs.
Draw the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves for a monopolistically competitive firm that makes zero economic profit.
As firms enter and exit a monopolistically competitive market, what happens to productive efficiency in the long run? Group of answer choices 1-Productive efficiency will not be reached because in the long run, economic profits reach equilibrium. 2-Prices will rise to unprecedented levels, and productive efficiency will be reached. 3-The strongest firms will survive and the market will morph into an oligopolistic market. 4-Price will eventually intersect the average cost curve at a point where price > average cost, and productive efficiency will not be reached
Why do firms in monopolistic competition have market power? Group of answer choices Firms in monopolistic compeitition have few barriers to entry and exit. Firms in monopolistic competition sell differentiated goods, and consumers have preferences for some firms’ goods over those of others. There are many firms in monopolistically competitive markets, and each is small relative to the overall market. This is a common misconception. They don’t.
Monopolistic competition refers to a market where many firms sell differentiated products. Differentiated products can arise from characteristics of the good or service, location from which the product is sold, intangible aspects of the product, and perceptions of the product. Think about a small business you might enjoy opening. Typical examples might be a restaurant, specialty clothing store, or professional service. Assume that it will be in a monopolistically competitive market structure. How will you specifically differentiate your product from others in the market?
true or false Monopolistic firms do not care about profits, their goal is to maximize total revenue.
There are thousands of wheat farmers who produce and sell wheat and there are millions of consumers who use wheat and wheat products. What would the market for wheat be considered? Question 15 options: monopolistic perfectly competitive monopolistically competitive oligopolistic
Question 2, Multiple Choice A monopolistic competitor has the following information about cost and demand.
Identify a perfectly competitive, monopolistically competitve, oligopoly, and monopoly firm that you have recently purchased a good/service from. Make sure to relate your answers to the market characteristics. Analyze why a perfectly competitive firm is only able to earn normal profits in the long run compared to the short run.
A firm is operating in the United States with only two other competitors in the industry. a. It is likely this industry would be characterized as: multiple choice 1 perfectly competitive. pure monopoly. monopolistically competitive. oligopoly. b. Firms in this industry will likely earn: multiple choice 2 an economic loss. an economic profit. a normal profit. c. If foreign firms begin supplying the product, increasing the number of competitors, it is likely that: multiple choice 3 economic profits will increase. economic losses will become smaller. economic profits will fall. normal profits will increase.
Question 3 In a monopolistically competitive industry, firms set price Group of answer choices equal to marginal cost since each firm is a price taker. below marginal cost since each firm is a price taker. above marginal cost since each firm is a price setter. always a fraction of marginal cost since each firm is a price setter.