Q: Aside from advertising, how can monopolistically competitive firms increase demand for their…
A: Monopolistic competition is an imperfect market structure in which there are large number of buyers…
Q: As the Disney and Warner brothers are the examples of Oligopolistic industry so they must use game…
A: $ values represent profit Warner Brothers Disney Star Wars Pirates of the Caribbean…
Q: Explain the importance of advertising in monopolistically competitive industries . How does this…
A: A monopolistic competitive industry and a perfectly competitive industry are types of market…
Q: Why demand curve in monopolistic competition market is downward sloping?) For the toolbar, press…
A: The monopolistic competition model refers to a common market structure in which producers compete…
Q: Why would a monopolistically competitive firm advertise?
A: Monopolistic competition describes a market in which a large number of companies compete for the…
Q: Why demand curve in monopolistic competition market is downward sloping? For the toolbar, press…
A: Monopolistic competition is a market structure in which a large number of enterprises compete for…
Q: As the Disney and Warner brothers are the examples of Oligopolistic industry so they must use game…
A: a) If Warner Brothers choose to make superman, then given the matrix, Disney would choose pirates of…
Q: Many economists argue that “More research, development, and innovation can be seen in the…
A: The above-given statement is correct that more R&D and innovation can be seen in the…
Q: What is the explanation for the kink in the kinked demand carve of an oligopolistic?
A: Kinked demand curve is a theory related with oligopoly and monopolistic competition. It is an…
Q: Briefly explain the two sources of consumer welfare increase in the Krugman's model of monopolistic…
A: The essence of the Krugman’s model is as follows: Preferences are heterogeneous between and within…
Q: the concept of Duopolistic competition and briefly describe the 3 main models of duopolistic…
A: A type of oligopoly known as a duopoly occurs when just two businesses control the market. A…
Q: Are monopolistically competitive firms likely to earn economic profits in the long run? Are…
A: Monopolistic competition is a market structure where large number of sellers exist in the market and…
Q: Explain why firms operating in monopolistically competitive markets probably will not earn an…
A: Monopolistic competition refers to the situation where there are many firms exists in the market.…
Q: What is a reaction curve in an oligopolistic market?
A: Market can be classified into four major structures. THe following are the structures : Perfect…
Q: 18) The HHI for where have (has) of the market is A. monopolistic competition; four firms each; 25%;…
A: HHI we consider the percentage share of each firm in an industry
Q: Difference between monopolistic competition and oligopoly market in economy ?
A:
Q: Question 2 Explain the shape of an oligopolist's demand curve Question 5 Define a collusive…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: How does the demand curve for a monopolistic competitive firm looks like? Graph it.
A: Monopolistic competition- It is an imperfect competition in which many producers sell products that…
Q: e. It is sometimes said that competitors in an oligopolistic industry need a price leader to…
A: An oligopoly is a market structure in which a small number of enterprises have a significant amount…
Q: Why might Monopolistic Competition be beneficial, why detrimental?
A: Monopolistic competition is a structure of market in which there are many sellers and each of them…
Q: 9. Of the duopoly models that we studied, industry profits are highest in happiest in and consumers…
A: There are different types of models in the duopoly marke, such as Bertrand model, stackelberg model,…
Q: There are two groups of firms below. Group 1: firms in the retail sector (e.g. Amazon; Wal-Mart;…
A: Monopolisitcally competitive market is the one which has a large number of buyers and sellers.…
Q: WHAT IS THE DIFFERENCE BETWEEN MONOPOLY AND OLIGOPOLY? PROVIDE EXAMPLES.
A: Thank you for the question. As per BNED we can answer 1 question per session in case of multiple…
Q: In an oligopolistic industry there are only a few firms. Is this statement correct? Explain.
A: An oligopoly market is a market controlled by a small number of suppliers. They are available in all…
Q: Why demand curve in monopolistic competition market is downward sloping?) For the toolbar, press…
A: Monopolistic competition is a market situation which posses following characteristics. 1. Large…
Q: Briefly explain price rigidity in oligopolistic markets using the kinked demand curve.
A: Oligopoly is the form of market structure where few large firms exist and sell differential products…
Q: Why is the equilibrium in an oligopolistic market less efficient than acompetitive market?
A: Oligopoly refers to the market structure where there are few firms dominating the market condition…
Q: P МС $4.00 АТС $3.00 D $2.50 $2.00 MR Q 3,000 3,500 4,000 Which of the following does this graph…
A: The given diagram in the question can be illustrated more clearly as follows.
Q: Why do oligopolies exist? List five or six oligopolists whose products you own or regularly…
A: Oligopoly is distinguished from monopolistic competition by being composed of few firms (not…
Q: a. A characteristic that makes both these markets monopolistically competitive is b. A…
A: A. In monopolistically competitive market all firms sell differentiated products. This is the…
Q: oligopolistic firm have a supply curve? WHY or WHY NOT
A: Oligopoly is a type of market where there are few sellers only, but these sellers are large in size…
Q: why demand curve in oligopoly market is downward slpoping?
A: Imperfect markets are those in which one of the two parties involved, such as buyers, and sellers…
Q: With the aid of a diagram explain on oligopolistic kinked demand curve.
A: Diagram of oligopolistic kinked demand curve:-
Q: What type of demand curve do we see with oligopolistic markets? Draw an example
A: We are going to learn concepts such as kinked demand curve and oligopolistic market to solve this…
Q: Question. What firms in perfect competitive market and monopolistic competitive market have in…
A: The perfect competitive market and monopolistic competitive market, both are the market structure,…
Q: Should competitors work together in an oligopolistic market?what is it called if they do,and is it…
A: One of the feature of oligopoly is interdependence between firms.
Q: true or false Monopolistic firms do not care about profits, their goal is to maximize total revenue.
A: The market structure can be divided into four based on the degree of competition and the type of…
Q: In the figure below, the firm is operating under an Oligopolistic market structure. If currently,…
A: Demand curve has a kink at price of 20, i.e., changes the slope at kink point. The portion above…
Q: Why is there so much advertising in monopolistic competition and oligopoly? How does such…
A: Imperfect market structures are those markets where individual firms have the power to influence the…
Q: Explain if excess profit will exist in the long run for an oligopolistic market.
A: Oligopoly is such a market condition where there are a few firms which are selling homogeneous or…
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- Westchesser Gloves is a monopolistically competitive firm that sells leather gloves. Use the graph to highlight the area of profit or loss and answer the questions, Price per pair (5) 10 20 Marginal profit or loss: $ Aver co Pairs of gloves (in thousand) Demand 70 80 90 100 Profit or loss Calculate Westchesser's profit or loss at the profit-maximizing price. What will happen to the number of firms in this industry in the long run? Firms will enter this industry, increasing the price at which each firm can sell their gloves until firms begin to earn normal profits. O Firms will exit this industry, increasing the price at which each firm can sell their gloves until firms begin to carn normal profits. O Firms will exit this industry, decreasing the price at which each firm can sell their gloves until firms begin to carn normal profits. O Firms will enter this industry, decreasing the price at which each firm can sell their gloves until firma begin to carn normal profitsDoes an oligopolistic firm have a supply curve? WHY or WHY NOT? Explain with graph(s).Suppose the carwash market is monopolistically competitive and that businesses in this market are currently earning positive economic profits. In the long run, the demand for an individual car wash business will the market , which will cause economic profits to as more carwash businesses enter Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a fall; rise fall; fall to zero rise; fall to zero d rise; rise
- Why does price elasticity of demand play such an important role in Ogligopolistic markets?How does the demand curve for a monopolistic competitive firm looks like? Graph it.Exercise 5.5 In this unit we have seen that monopolistically competitive firms could increase the amount they produce and reduce the ATC of production. Why don't they?
- What type of demand curve do we see with oligopolistic markets? Draw an examplels uccess Tips ■ccess Tips NOUT Actumpto Koup the Highest/3 3. 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. PRICE (Dollars par bat) 80 70 60 20 MO о о 10 20 40 ATC 60 QUANTITY (Thousands of bas) Demand Man Camp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, the quantity the firm produces in long-run equilibrium is average total cost. at the the quantity at which…K Suppose the figure to the right represents the market for a particular brand of shampoo, such as L'Oreal, Lancome, or Maybelline. Assume the market is monopolistically competitive. What is the firm's profit-maximizing price and quantity? thousand per bottle. (Enter your The monopolistically competitive firm's profit-maximizing quantity is bottles of shampoo, and its profit-maximizing price is $ responses as integers.) Price and cost (per bottle) ♫ 3.00- MC 2.80- ATC 2.60- 2.40- 2.20- 2.00- 1.80- 1.60- 1.40- 1.20- 1.00- 0.80- 0.60- 0.40- 0.20- 0.00+ 0 MR 2 4 6 8 10 12 14 16 18 20 22 24 Quantity (shampoo bottles in thousands)
- Which of these is monopolistically competitive?The following graph represents a monopolistically competitive firm in long-run equilibrium. Place the black point (cross sign) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Next, place the grey star on the graph to indicate the point where the LRAC reaches a minimum. PRICE PER UNIT (Dollars) 500 450 400 350 300 250 200 150 100 50 MC 0 0 50 LRAC MR Demand 100 150 200 250 300 350 400 450 500 QUANTITY (Units) Monopolistically Competitive Outcome Minimum of the LRAC The long-run equilibrium price is $ (Hint: Use the graph to find the numeric value of the price at equilibrium.) The long-run equilibrium quantity is units. The LRAC curve is at its minimum at a quantity of The long-run equilibrium price is units. the marginal cost of producing the equilibrium output. ?Why do monopolistically competitive firms spend funds for the product development and advertising when this practice only adds to the firm’s costs?
