44. Which of the following does a monopolistic competitive firm engage in to try and increase profits:Select one:ofO a. Non-pricing competitionb. Shadow marketsC. Price fixingO d. Collusion16. A consequence of a Maximum price is:Select one:ofa. A new equilibrium establishedb. Excess supplyc. Over production of goodsd. Excess demand

44) In monopolistic competition, there are many sellers differentiated products this is because…

Answered: 44. Which of the following does a…

44. Which of the following does a monopolistic competitive firm engage in to try and increase profits: Select one: O a. Non-pricing competition b. Shadow markets O c Price fixing O d. Collusion

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 1.1P

See similar textbooks

Similar questions

The above figure is for a firm in monopolistic competition. The diagram represents the short run rather than the long run because 5 MC 4 АТС 1 MR 20 40 60 80 100 120 Quantity (units per day) A. the MR curve cuts the ATC curve from below. O B. the MR curve and the D curve do not coincide. OC. the firm is incurring an economic loss. OD. the firm is earning an economic profit. 3. 2. Price and costs (dollars per unit)
44. Which of the following does a monopolistic competitive firm engage in to try and increase profits: Select one: O a. Non-pricing competition b. Shadow markets C. Price fixing O d. Collusion 16. A consequence of a Maximum price is: Select one: O a. A new equilibrium established b. Excess supply Oc Over production of goods d. Excess demand
Because consumers value product variety, OA. no two goods of the same type will have equal prices. B. the inefficiency of monopolistic competition is partially offset. OC. in the long run, monopolistic competition firms make economic profit. O D. monopolistically competitive industries are efficient. E. the demand for goods in monopolistic competition is perfectly elastic. Show Transcribed Text The table provides information about Prue's Personal Trainer Service, a firm that is in monopolistic competition with similar firms that offer slightly differentiated services. What is Prue's profit-maximizing quantity? What is Prue's price? Prue's profit-maximizing quantity is Prue's price is $ a session. sessions an hour. What is Prue's markup and does she have excess capacity? Prue's markup is and she excess capacity. OA. $30 per session, has OB. more than $15 an hour; has no OC. $15 per session; has no OD. less than $15 an hour, has Demand schedule Quantity (sessions per hour) 0 1 2 3 4…
1. How might advertising make market less competitive? How might it make markets more competitive? Give the arguments for and against brand names. 2. You are hired as a consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is maximizing profit, is the market in a long-run equilibrium? If not, what will happen to restore long-run equilibrium? a. P < MC, P > ATC b. P > MC, P < ATC c. P = MC, P > ATC d. P > MC, P = ATC
A product market has only one seller.. There are no close substitutes for the product. What type of market is this and how does it set prices? Select one: a. It is an example of monopolistic competition where firms charge the same price. b. It is an example of perfect competition with market power. c. It is an example of a monopoly which set prices based on market demand. d. There is no way to tell where prices come from without knowing what the product is. e. It is a monopolistically competitive firm that can charge whatever it wants to charge.
Figure 16-2 This figure depicts a situation in a monopolistically competitive market. 100 90 80 70 60 50 40 30 20 10 MC MR ATC Demand 10 20 30 40 50 60 70 80 90 100 QUANTITY Refer to Figure 16-2. Assuming the firm is maximizing profit, this firm is operating a. in the short run and earning a positive economic profit. b. in the long run and incurring and economic loss. c. in the short run and breaking even. d. in the long run and earning a positive economic profit..
Why does a local McDonald's face a downward-sloping demand curve for its Quarter Pounder? In monopolistically competitive markets, A. changing the price affects the quantity sold because there are substantial barriers to entry . B. changing the price does not affect the quantity sold because firms have market power . C. changing the price affects the quantity sold because firms are price takers. D. changing the price affects the quantity sold because firms sell differentiated products. E. changing the price does not affect the quantity sold because firms are price makers
The folowing diagram shows the curves for perceived demand, marginal revenue, and cost for Manuela's Pizza, which serves Mexican-style pizza. Manuela's is one of many other fast food restaurants in this town. MC Price and Cost ATC Demand Quantity of piezas Which statement describes the transibon to the long nun? Select the best answer. O More fast food restaurants will enter the market, and Manuela's demand curve will become more elastic. Manuela's will raise its prices since there is a large demand for its pizzas. O More fast food restaurants will enter the market, and Manuela's demand curve will become more inelastic. Manuela's will experience lower costs of production because it will expand its output.
Consider the following market for Tim's Terrible T-shirts a firm company producing in the monopolistically competitive t-shirt market. $7 $6 $5 $3 $2 $1 0 Question 16 10 20 30 Question 17 MR 40 Quantity MC D 50 60 70 80 At his profit maximizing output, what is the total profit earned by Tim? Should Tim want to maximize his profit in the short-run, how many t-shirts will he produce? ATC Describe what we expect to happen to Tim's terrible t-shirts in the long run. Since Tim is making |Select] to participate in the market. As a result, the demand for Tim's shirts should Select] Please answer all parts of question correctly. will give thumbs up if correct ✓economic profit in the short-run, as he transitions to the long run we would expect [Select | and become (Select]
The profit-maximizing firm illustrated in Figure operates in a monopolistically competitive industry. Which of the following best explains what happens in the long run? Price 4 O MC ATC AVC D MR Quantity
Σ B. 20 10 50 30 20 PRICE (Dollars per bat) Homework (C (91. 4. Is monopolistic competition efficient? Suppose that a firm produces baseball bats in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost. 06 Mon Comp Outcome Min Unit CAst 09 40 10 MR Demand pleuwe 09 06 QUANTITY (Thousands of bats) Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that ▼ at the optimal eticall the miair MacBook Pro ACID & 5. R H N command comm
Consider the diagram below depicting the demand and cost conditions faced by a monopolistically competitive firm. a. Use the graph to show how price and output will vary depending upon which point the firm produces. Indicate the levels that will be produced under profit maximization, productive efficiency, and allocative efficiency. Instructions: (1) Use the tool provided 'Profit maximizing' to plot a point showing the price-quantity combination when the firm is maximizing profit. (2) Use the tool provided 'Productive efficiency' to plot a point showing the price-quantity combination when the firm is producing the productively efficient output level. (3) Use the tool provided 'Allocative efficiency' to plot a point showing the price-quantity combination when the firm is producing the allocatively efficient output level. Tools MC Productive eff Profit maximiz ATC Allocative effi Demand MR Quantity b. In which of these three situations is the highest output level produced? O Profit…