Q: What makes a monopolistic competitive firm different from that of a monopoly? From an economic…
A: The monopoly market and monopolistic competitive market, both are the market structure, with some…
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Q: List the three key attributes of monopolistic competition.
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Q: Explain why monopolistic competition delivers neither productive nor allocative efficiency.
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Q: Monopolistically competitive markets are like perfectly competitive markets because
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Q: Look at the figure below. Which diagram is consistent with a monopolistic competitor making zero…
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Q: Explain the difference between Monopolistic Competition and Perfect Competition? ( through…
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Q: Why the demand curve for a firm operating in monopolistic competition is more elastic compared to…
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Q: Please complete the following sentence. Monopolistic competition and perfect competition differ…
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Q: The difference between monopolistic competition and perfect competition
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Q: When firms are operating in a monopolistic competitive market,then ..
A: This is an imperfect type of competition. In this type of competition many producers in the market…
Q: Proponents of monopolistic competition point to which of the following?
A: The economics as a study is based upon the idea that the nations, societies, or economies tend to…
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A: A monopolistic competitive market is the one where firms provide differentiated goods which makes…
Q: What is the advantages of perfect competition in its rivalry - - the monopolistic competition?
A: Perfect Competition is the market structure involving larger number of buyers and sellers selling…
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Q: What is monopolistic competition? Give a real-life example which follows the pattern very closely.
A: Monopolistic competition is one of the 4 main market structures which are:- Perfectly competitive…
Q: Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or…
A: Monopolistic competition is a kind of imperfect market structure where there is large number of…
Q: f a monopolistically competitive firm is earning positive economic profit in the short run, then new…
A: In Monopolistically competitive market, the sellers sell differentiated products which are close…
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A: Basics:- Profit maximization condition in all the market types:- Marginal Revenue = Marginal Cost…
Q: In the long run, the positive economic profits earned by the monopolistic competitor will attract a…
A: A monopolistically competitive market is characterized by a large number of small firms that produce…
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A: A monopolistically competitive market comprises of many sellers supplying similar but differentiated…
Q: monopolistic competitive markets, one effect of successful advertising is that Question 13…
A: In monopolistic market, product differentiation occurs ie. similar products exist in the market.…
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Q: In the short run, the price charged by a monopolistic competitor is equal to his marginal cost.…
A: Monopolistic competition refers to a market structure where many firms produce and sell…
Q: What is the difference between a monopolistically competitive industry and a monopoly? Multiple…
A: A monopoly refers to a sole seller of a good or service which does not have any close substitutes. A…
Q: How is monopolistic competition like monopoly, perfect competition and oligopoly? Why does price…
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Q: How is the perceived demand curve for a monopolistically competitive firm different from the…
A: The demand curve is defined as the relation between the quantity demanded and the price level. It…
Q: Due to a successful advertising campaign, a monopolistic competitor experiences an increase in…
A: The advertising campaign will attract new customers. Therefore, the firm’s demand curve will shift…
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A: Monopolistic competition is a model of the market in which several enterprises compete with one…
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A: Monopolistic competition: - monopolistic market structure is the structure in which there is large…
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A: A monopolistically competitive market is the one which has a large number of sellers who use…
Q: The demand curve facing a firm in a monopolistically competitive market is more elastic than one…
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Q: for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 how much it…
A: here we calculate the profit maximizing , Quantity and Price by using the given information which…
Q: output and price, and discuss its implications, if: You are a monopolistically competitive firm…
A: 1) The monopolistically competitive market has profit maximising condition is given as MR=MC…
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Suppose that you counted the higher price the consumer pays for the monopolistically competitive firm's product as part of
Would that change the conclusion regarding the efficiency of monopolistic competition?
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- When oil prices increased 10 fold during the 1973 – 80 energy crisis, many oil companies made huge profits. During this energy crisis, Congress considered imposing an “excess profits” tax on oil companies. If you were in Congress, would you vote for such a tax? Do unexpected monopolistic profits serve any useful function in a market economy?What are the “monopolistic” and the “competitive” elements of monopolistic competition?Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.Similar to a monopoly, a monopolistic competitor: can restrict output to increase price (at least in the short run).checked can make profits or losses in the short run.unanswered faces a downward-sloping demand curve.unanswered faces high barriers to entry.unanswered makes economic profits in the long run.unanswered produces where P > MR = MC.unanswered has one seller.unanswered Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.Similar to a perfect competitor, a monopolistic competitor: faces a perfectly elastic demand…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. ?
- In the long run, the positive economic profits earned by the monopolistic competitor will attract a response either from existing firms in the industry or firms outside. As those firms capture the original firm’s profit, what will happen to the original firm’s profit-maximizing price and output levels? Show on a graphWhy is a competitive market generally better for society than a monopolistic market?a) Can the threat of a price war deter entry by potential competitors? What actions might a firm take to make this threat credible? b)Why is the firm’s demand curve flatter than the total market demand curve in monopolistic competition? Suppose a monopolistically competitive firm is making a profit in the short run. What will happen to its demand curve in the long run?
- If you have a graph showing a monopolistic competitive situation in which demand shifts to the left in the long run but your graph only shows the MR curve in the short run, how do you figure out where the long-run MR line should go on the graph? (I have 2 demand curves (sr and lr), but only 1 MR curve (sr). I think it would be to the left of MR sr, but don't know how to draw it. One would need to know this to figure out excess capacity and markup, right?Suppose that a firm produces wooden train engines 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.What do economists mean when they say that competitive markets are more efficient than monopolistic markets? Monopolistic markets result in lower price and higher production Competitive markets result in lower prices, monopolistic market result in higher production Competitive markets result in lower costs, lower prices, and higher levels of production Easy entry and exit
- 3. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. PRICE (Dollars per scooter) 500 450 400 350 300 250 200 150 100 50 0 MC 0 50 100 ATC Demand 150 200 250 300 350 400 450 500 QUANTITY (Scooters) MR Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, Citrus Scooters is earning Profit or Loss sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to…PRICE (Dollars per shirt) 100 90 80 70 60 50 40 30 20 10 0 MC 0 10 ATC True Demand MR + 20 30 40 50 60 70 80 QUANTITY (Thousands of shirts) O False 90 100 + Mon Comp 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 firms minimize True or False: In long-run equilibrium, a monopolistically competitive firm charges a price that is above marginal cost.Suppose that a firm produces polo shirts 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.
