Answered: How is monopolistic competition like…

Business

Economics

How is monopolistic competition like monopoly, perfect competition and oligopoly?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 19P: Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to...

See similar textbooks

Related questions

Q: There is much evidence that large firms with considerable market power (firms such as monopolies)…

A: producer equilibrium is the situation where firm produces the efficient level of output that…

Q: What are the causes for monopolies. Discuss the pros and cons of monopolies? What is the deadweight…

A: A monopoly refers to a company that is the sole producer of a product or service that is not a…

Q: 1. What is a monopoly? What are anti-trust laws? How da these relate to the Epic Games vs. Apple…

A: 1) Monopoly is defined as the single ruler, where there is a high barriers to entry and there is a…

Q: Which barriers to entry give rise to what economists would call 'natural monopolies'? Check all that…

A: Natural Monopoly is present when there is huge amount of money invested in the start up of the…

Q: 1. What is oligopoly? 2. What is the difference between monopoly and monopolistic competition?

A: Introduction Oligopoly , monopoly and monopolistic competition are the forms of markets. 1.…

Q: With the aid of a diagram explain how a monopolist determines how much output to produce and what…

A: a) Monopolist sets the prices and output level where marginal revenue is equal to the marginal cost…

Q: Which of the following is different about perfect competition and monopolistic competition? a. In…

A: In perfect competition and monopolistic competition, there are many firms with free entry and exit.

Q: What are som existence of monopolies? Should all monopolies be broken up? Are all large firms with…

A: Monopoly is a market structure with single seller for a particular commodity. There is no free entry…

Q: sider the diagram at the right depicting the revenue and cost conditions d by a monopolistically…

A: In a monopolistic competitive firm there are large number of firms producing similar but not…

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: (1) Are colleges and universities an example of purecompetition or monopolistic competition? Why?…

A: Under pure competition, goods and services are homogeneous and price is fixed, each individual firms…

Q: Read the passage. Then answer the question that follows. The Denim Company is a producer of jeans,…

A: In monopoly, eqm quantity is found by the intersection of MC(marginal cost) and MR(marginal revenue)…

Q: Is it possible to happen non-collusive behaviour i the price leadership model of Oligopolies ?

A: In Non- Collusive behavior of oligopoly is when each firm compete with each other and thus act…

Q: d. How do the monopolistically competitive firm's price and output compare to those of the perfectly…

A: A monopolistically competitive market is characterized by the existence of a large number of small…

Q: Explain what you know about collusion and cartels, including: definition, formation of motives,…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: For each of the following, is the business a price-taking producer? Explain your answers. a. A…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 2. Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why…

A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…

Q: please help me 1.Explain what market inefficiencies derive from monopolies and monopolistic…

A: Due to monopolies,prices are raised to a greater extent.This causes inefficiencies in the market by…

Q: a) How much is Output: b) How much is the firm's profit? Profit: $ c) What type of oligopolist is…

Q: Critical Thinking In many oligopolistic industries, firmsfollow a price leadership strategy, in…

A: Oligopoly Market: Oligopoly is a type of market that has few firms that dominate the market. In an…

Q: a. With the aid of a diagram explain how a monopolist determines how much output to produce

A: a. The monopoly market is demonstrated in the following graph. MR=MC = Demand is the profit…

Q: Question 6 (a) Why is Perfect Competition considered to display high level of economic efficiency?…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

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: 3) price is p. Only two firms produce in this market. They have identical costs, given by c{y.) =…

A: A cartel maximizes joint profit be equating MR and MC. MC = dc/dy = 2y Since y = 256/p2, p2 = 256/y…

Q: A. How does the demand curve faced by the firm in monopolistically competitive market differ from…

A: A monopolistically competitive market and a perfectly competitive market are similar in many…

Q: The task to complete is to create a market scenario for a branded handbag. (You can google handbags…

A: Monopolistic competition is a market structure in which a large number of companies produce products…

Q: (Monopolistic Competition an pared)|llustrated below are the marginal cost and aver- age total cost…

A: we'll answer the first question mentioned ) ( up to 3 sub parts) since the exact one wasn't…

Q: i)Do you think monopolistic competetion markets operate efficiently?

A: NOTE:We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: How is monopolistic competition like monopoly, perfect competition and oligopoly?

A: - Hello. Since your question has multiple parts, we will solve the first question for you. If you…

Q: a. Critically compare and contrast monopoly with perfect competition and explain why monopoly output…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: . a.) Should companies be allowed to price discriminate? Do you agree with colleges price…

A: a) Price discrimination: Price discrimination basically means charging different prices from…

Q: How many real industries can you name that are oli-gopolies? How many operate under monopolistic…

A: Oligopoly market refers to a market form where there exists few sellers and they operate a…

Q: Firms compete in different types of market structures. In the real world, most markets are either…

A: 1)a) Monopoly is a market structure where there is single seller and many buyers. The firm is a…

Q: Why do oligopolies exist? Do oligopolies exist due to ? a. market failure b. barriers to entry c.…

A: A market defines a platform where two or more individuals are ready to make economic activities…

Q: Being the only producer in a monopoly market, can a monopolist charge a very high price to maximize…

A: Since the monopolist is the sole producer of the good in the market, he has the market power to…

Q: Q 03: How do oligopolies works? Give one example of each? How is the market structure different on…

A: There are four major types of market structures in the economy: perfect competition, monopoly,…

Q: 4 If oligopolies compete hard against each other, which of the following will likely occur? A They…

A: When the oligopolies firm is competing for each other very hard then act in the market like perfect…

Q: There are thousands of broadband internet providers in the country, while in a particular city the…

A: Oligopoly: - it is a market condition where there are few firms or sellers in the market selling…

Q: side from advertising, how can monopolistically competitive firms increase demand for their…

A: Monopolistically competitive firm holds mixed characteristics of perfect competition and monopoly.…

Q: a. What evidence is there to indicate that the UK supermarket business is an oligopoly? What further…

A: Since the question you have posted consists of multiple parts, we will answer the first three…

Q: sing examples expalin how monopolistically competitive and oligopolistic firms use non price methods…

A: Under monopolistic competition, the firms sells differentiated products that differ in terms of…

Q: How is monopolistic competition like monopoly, perfect competition and oligopoly?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Question

a. How is monopolistic competition like monopoly, perfect competition and
oligopoly?
b. Give two examples of price discrimination. In each case, explain why the
monopolist chooses to follow this business strategy
c. Why does price equal marginal revenue for the perfectly competitive firm?
What is the relationship to the demand curve for the firm?

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
Andreas Day Spa began to offer a relaxing aromatherapy treatment. The film asks you how much to charge to maximize profits. The first two columns in Table 10.5 provide the price and quantity for the demand curve for treatments. The third column shows its total costs. For each level of output, calculate total revenue, marginal revenue, average cost, and marginal cost. What is the profit-maximizing level of output for the treatments and how much will the firm earn in profits?
What is the relationship between product differentiation and monopolistic competition?
Continuing with the scenario in question 1, in the long run, the positive economic profits that the monopolistic competitor earns will attract a response either from existing firms in the industry or film outside. As those films capture the original films profit, what will happen to the original films profit-maximizing price and output levels?
a. How is monopolistic competition like monopoly, perfect competition andoligopoly? b. Give two examples of price discrimination. In each case, explain why themonopolist chooses to follow this business strategy (answer b)c. Why does price equal marginal revenue for the perfectly competitive firm?What is the relationship to the demand curve for the firm?
The major difference between monopolistic competition and monopoly is a. how the quantity of output is determined. b. only a monopoly can earn an abnormal profit in the long run. c. monopoly is a price taker, and a firm in monopolistic competition is a price maker d. only firms in monopolistic competition are protected by barriers to entry
The graph shows the demand curve and marginal revenue curve of Java Time, Inc., a producer of espresso machines in monopolistic competition. Draw the firm's marginal cost curve if Java Time produces 125 espresso machines a week. Label it Draw a point at the profit-maximizing quantity and price. if average total cost at the profit-maximizing quantity is $100 a machine, what is Java Time's economic profit? Java Time's economic pro t is $ Selected: none ON 804 604 0 Price and cost (dollars per machine) 25 50 75 100 125 150 1175 200 225 250 2 Quantity (espresso machines per week) >>> Draw only the objects specified in the question ate Clear ?
Use the diagram to answer the following questions. Market Structure and Demand MC ATC D. D2 Quantity a. Compare the elasticity of a monopolistic competitor's demand with that of a pure competitor and a pure monopolist. A monopolistic competitor's demand curve is less v elastic than that of a pure competitor. A monopolistic competitor's demand curve is more | elastic than that of a pure monopolist. b. Using the diagram above, Identify the demand curve for each of the following: Monopolist: D3 Monopolistically competitive firm: D2 Perfectiy competitive firm: D1 C. Assuming identical long-run costs, as shown In the diagram, Identify graphically the price and output that would result In the long run under monopolistic competition. The long-run price and output for a monopolistically competitive firm is represented by Point B d. Contrast the two market structures In terms of productive and allocative efficiency. Instructions: Complete the table below by selecting options from each of the…
Question 1a. How is monopolistic competition like monopoly, perfect competition andoligopoly? b. Give two examples of price discrimination. In each case, explain why themonopolist chooses to follow this business strategy c. Why does price equal marginal revenue for the perfectly competitive firm?What is the relationship to the demand curve for the firm?
Imagine that in a certain industry (choose any) monopolistic competition is replaced by monopoly. a. As a result of what can this happen? Describe a possible scenario. b. Using demand, marginal cost, and marginal revenue graphs, show how this decrease in competition will change market prices. Make appropriate comments on the graphs, paying special attention to the direction of changes. c. Describe what changes may occur in the methods of competition if the firm becomes a monopoly
The major difference between a monopolistic competition and monopoly is, a. monopoly is a price taker and a firm in monopolistic competition is a price maker. b. there are barriers to entry and exit in monopolistic competition and freedom to enter and exit in monopoly. c. only a monopoly can earn an abnormal profit in the long run. d. None of these.
A. How does the demand curve faced by the firm in monopolistically competitive market differ from the demand curve faced by a firm participating in a purely competitive market? b. How does that impact how the firm sets its price and the quantity the firm produces?