A characteristic of monopolistic competition is a. a low ratio of fixed to variable costs. b. product differentiation. c. a high capital-output ratio. d. the absence of advertising.
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- What is the main difference between a perfectly competitive industry and a monopolistically competitive industry? Select one: a. zero economic profit expected in the long run b. the number of firms in the market c. no barriers to entry d. product differentiationWhen a monopolistically competitive industry is in long-run equilibrium: choose correct and explain your choice a. firms earn economic profits. b. firms earn zero economic profits. c. price equals minimum average total cost. d. price equals marginal cost.2. In the long run the demand curve that a monopolistic competitor faces for its product will likely: A. Intersect the ATC at its minimum point. B. Intersect the ATC curve somewhere past the minimum point. C. Become tangent to the ATC curve somewhere left of its minimum point. D. None of the above.
- The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are a. able to differentiate their products. b. price takers. c. large relative to the market. d. able to block the entry of other firms.A profit-maximizing monopolistic competitor continues production until ________. a. marginal revenue exceeds average revenue b. marginal revenue exceeds marginal cost c. marginal revenue equals marginal cost d. marginal revenue equals average revenueWhich of the following is a characteristic of monopolistic competition? A. Many sellers with identical products B. Few sellers with differentiated products C. Few sellers with identical products D. Many sellers with differentiated products
- .23. Which of the following does not characterize monopolistic competition? a Product differentiation Many prodicIS Absence of advertising. d. Some control over price ARWhich of the following conditions does NOT describe a firm in a monopolistically competitive market? a. It sells a product different from its competitors. b.It takes its price as given by market conditions. c. It maximizes profit both in the short run and in the long run. d.It has the freedom to enter or exit in the long run.Monopolistically competitive firms use product differentiation to Question 3Answer a. block other firms from entering the industry. b. limit the number of firms in the industry. c. ensure long-run profits. d. achieve market power.
- 1. Graph the monopolistic competitive firm taking a loss and explain the process from the short-run loss to the long-run equilibrium. Make-up numbers to show the Q, P, ATC.23. Which of the following does not characterizę monopolistic competition? a Product differentiation †Many produceS Xbsence of advertising. d. Some control over priceIn monopolistically competitive markets, products are ____ and entry is ____. Select one: a. differentiated; free b. identical; free c. differentiated; hard d. identical; hard