The difference between products in monopolistic competition and perfect competition .

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Answer 1

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Chapter 14, Problem 1Q

To determine

The difference between products in monopolistic competition and perfect competition.

Expert Solution & Answer

Explanation of Solution

In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.

The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more price for the same product which is sold by its competitors, whereas in perfect competition buyer knows that the products are homogenous, so they are willing to give the same price which prevails in the market.

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Answer 2

Question

100%

Chapter 14, Problem 1Q

To determine

The difference between products in monopolistic competition and perfect competition.

Expert Solution & Answer

Explanation of Solution

In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.

The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more price for the same product which is sold by its competitors, whereas in perfect competition buyer knows that the products are homogenous, so they are willing to give the same price which prevails in the market.

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Answer 3

Question

100%

Chapter 14, Problem 1Q

To determine

The difference between products in monopolistic competition and perfect competition.

Expert Solution & Answer

Explanation of Solution

In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.

The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more price for the same product which is sold by its competitors, whereas in perfect competition buyer knows that the products are homogenous, so they are willing to give the same price which prevails in the market.

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Answer 4

Question

100%

Chapter 14, Problem 1Q

To determine

The difference between products in monopolistic competition and perfect competition.

Expert Solution & Answer

Explanation of Solution

In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.

The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more price for the same product which is sold by its competitors, whereas in perfect competition buyer knows that the products are homogenous, so they are willing to give the same price which prevails in the market.

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Answer 5

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Answer 6

Question

100%

Answer 7

Chapter 14, Problem 1Q

To determine

The difference between products in monopolistic competition and perfect competition.

Expert Solution & Answer

Explanation of Solution

In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.

The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more price for the same product which is sold by its competitors, whereas in perfect competition buyer knows that the products are homogenous, so they are willing to give the same price which prevails in the market.

Answer 8

Chapter 14, Problem 1Q

To determine

The difference between products in monopolistic competition and perfect competition.

Expert Solution & Answer

Explanation of Solution

In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.

The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more price for the same product which is sold by its competitors, whereas in perfect competition buyer knows that the products are homogenous, so they are willing to give the same price which prevails in the market.

Answer 9

Chapter 14, Problem 1Q

To determine

The difference between products in monopolistic competition and perfect competition.

Answer 10

Expert Solution & Answer

Explanation of Solution

In perfect competition, trading takes place in homogeneous (identical) products, but in the monopolistic competition the trading tkes place in heterogeneous (differentiated) products. However, both the markets have large number of consumers and producers.

The difference can be in the form of branding and quality. The monopolistic firm shows the difference in its product with the help of advertisement because, if the buyer knows the difference, then he will be willing to pay more price for the same product which is sold by its competitors, whereas in perfect competition buyer knows that the products are homogenous, so they are willing to give the same price which prevails in the market.