In a monopolistically competitive market, A strategic interactions among the firms are very important. B the threat of entry by new firms is not an important consideration. the attainment of a Nash equilibrium is an important objective. firms may enter even though they will earn zero economic profit in the long run.
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- What is an assumption of the model of monopolistic competition? O Consumers lack adequate information about the prices and qualities of products. O There are significant barriers to entry in the market. O There are only a few firms in the industry. O Nonc of thesc choices.a. b. C. d. Price panel a panel b panel c panel di Price (a) (c) MA MC MR ATC Quantity MC ATC D Quantity Price Price (b) MR (d) MC Quantity MC مما ATC Refer to Figure 3. Assume a monopolistic competitive environment: From the 4 graphs depicted, which one of them represents a short-run equilibrium that encourages the entry of other firms? ATC Quantity Da In the long run, a monopolistic competition firm produces an output where the price is... Draw the graph as needed. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. b C d Question 3 e equal to MC below the MC near or equal to the ATC and greater than the MC above the ATC and equal to the MC below the ATC in the market. Question 4
- What are the important characteristics for monopolistic competitive firms? Give an example that the monopolistic firms have Excess Capacity.The graph below shows the demand curve for a perfectly competitive firm. Suppose that firms in this industry discover a way to differentiate their products. Using the line drawing tool, show how the firm's demand curve would be likely to change. Label the new demand curve 'd,'. Carefully follow the instructions above, and only draw the required objects. Since the demand curve is downward sloping, the monopolistically competitive firm will set a price OA. that is less than marginal cost. B. that is unrelated to marginal cost. OC. that is equal to marginal cost. D. that is greater than marginal cost. Price 10- Q Q Output 10Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________..
- Price, Cost MR MC ATC D QuantityIn the long run, which of the following market has the following equilibrium condition: (1) everyone is making zero economic profit; (2) market price = ATC monopolistic competition monopoly O perfect competition oligopoly « Previous Nex No new data to save. Last checked at 11:47am Submit 000 80 DD esc F1 F2 F3 F4 F5 F6 F7 F8 F9Consider a monopoly trading firm that dominates a particular market. Describe the factors that contribute to the monopoly's ability to control prices and generate profits and as such discuss its short run and long run profit situation. Use relevant diagrams to support your answer. Ans suppose more firms are interested in joining the market and over the years, the market structure is characterised by monopolistic competition. Discuss the implication on the firm’s short-run and long run profits with the use of relevant diagrams.
- In what sense do monopolistically competitive firms have market power? Question 1Answer a. Firms in the long run will earn zero economic profits b. The demand curve that a typical firm faces is negatively sloped c. Because of brand loyalty, a firm can raise the price of its product without worrying that any of its customers will switch to buy other similar brands d. All of the answers are correct1. Why does the model of monopolistic competition does it have that name?When firms are operating in a monopolistic competitive market,then ...