Unlike a monopolistic firmʹs product, a monopolistically competitive firmʹs product a. is a unique product. b. has no close substitutes. c. is homogeneous. d. has many close substitutes.
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Unlike a monopolistic firmʹs product, a
is a unique product.
has no close substitutes.
is homogeneous.
has many close substitutes.
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- Unlike a monopolistic firmʹs product, a monopolistically competitive firmʹs product a.has no close substitutes. b.is a unique product. c.has many close substitutes. d.is homogeneous.If a firm is operating in a monopolistically competitive market, then in the long run: A. the firm will maximize its profit by producing the output level at which the marginal revenue is minimized. B. the firm will earn zero economic profit. C. the firm will maximize its profit by producing the output level at which the average cost is minimized. D. all of the aboveExplain your reasons 1.If demand is elastic, the difference between the monopolistic price and the competitive market price would be greater compared to when the elasticity is low. 2. In 2011, heavy rain and cold weather destroyed 10 percent of the world coffee products. Therefore, it is expected that people consume less coffee.
- When production is undertaken by a monopolistic firm as opposed to a firm in a perfectly competitive market, we generally observe that a. More is produced and there is a loss in surplus. b. More is produced and surplus is increased. C. Less is produced and there is a loss of surplus. d. Less is produced and there is an increase in surplusWhich of the following is not true of a monopolistically competitive firm? a. The firm will not likely earn an economic profit in the long run. b. The firm will maximize profits by producing where MR = MC. c. The firm will produce an efficient quantity where average total cost is minimized.In monopolistically competitive markets, zero economic profit is associated with: Select one: a. inefficient output and excess capacity. b. efficient output and no excess capacity. c. competitive equilibrium because other firms entered the market. d. no deadweight loss e. minimization of average total cost.
- A photocopy shop in a monopolistically competitive market could daily sell 17,600 copies at a price of 4 cents, or it could sell 26,400 copies at a price of 3 cents. a. The marginal revenue associated with this range of the business's demand curve is____ cent(s). b. Draw the relevant range of this business's demand curve and identify a point on its marginal revenue curve.In monopolistic competition, a firm has some ability to affect the price for its product because of Select one a. economic profits. b.easy entry and exit. C. many competitors product differentlation.Exercise A.8. The graph below corresponds to a company operating in a market under conditions of monopolistic competition: € 5 4 3 2 1 CM CMe 20 40 60 90 100 120 Quantity of output a) What is the level of production maximizes the short-term profits of this company? b) What price will the company charge to maximize its profits? c) What benefits does the company obtain in the short term? d) How would advertising affect the curves shown in the graph? Would profits necessarily increase? Reason your answers.
- Monopolistically competitive firms use product differentiation to a.limit the number of firms in the industry. b.ensure long-run profits. c.achieve market power. d.block other firms from entering the industry.A monopolistically competitive firm that earns an accounting profit in the short run Group of answer choices a. must also earn an economic profit in the short run. b. does not earn enough to earn an economic profit in the short run. c. could earn an economic profit, break even, or suffer an economic loss in the short run. d. could earn an economic profit or break even, but could not suffer an economic loss in the short run.Assume a monopolistically competitive firm encounters a decrease in average variable cost at all output levels.We would expect: a. The price to rise and output to rise b. The price to fall and output to fall c. The price to rise and output to fall d. The price to fall and output to rise