Considering the slope of the perceived demand curves faced by the firms in the four market structures,____________ we can list (most elastic). A) price competitive, quantity competitive, non-price competitive, product differentiation. B) oligopolist, perfectly competitive, monopoly, monopolistically competitive. C) perfectly competitive, oligopoly, monopolistic competitive, perfectly competitive . D) monopolist, oligopolist, monopolisitcally competitive, perfectly competitive demand curves reflect that firm's ability raise its price without losing all of its customers.

Considering the slope of the perceived demand curves faced by the firms in the four market structures,____________ we can list (most elastic). A) price competitive, quantity competitive, non-price competitive, product differentiation. B) oligopolist, perfectly competitive, monopoly, monopolistically competitive. C) perfectly competitive, oligopoly, monopolistic competitive, perfectly competitive . D) monopolist, oligopolist, monopolisitcally competitive, perfectly competitive demand curves reflect that firm's ability raise its price without losing all of its customers.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 9SQ

See similar textbooks

Similar questions

Monopolistic Competition Consider the folowing graph, (graph 1) for the short run equilibrium for a monopolisticaily competitive firm producing printers for commercial operations. Graph1 $ Price per unit P1 ATC MC P2 Pa D3 D2 D3 Q2 Qu Q3 Quantity MR2 MR. The following information is given: D1 = $35,000- $15Q TC = $550,000+ $1,000Q+ $10Q? Answer the following and referring to the relevant elements of graph 1 above and show all workings. (a) Calculate price output and profit for the short run equilibrium (show all workings). (b) Calculate price, output and profit for the long run equilibrium (with and without product differentiation) (show all workings). (c) Is the market allocatively efficient in the short run or long run (why or why not?). (d) Is the market productively efficient in the short run or long run (why or why not?).
Compare the elasticity of the monopolistic competitor’s demand with that of a pure competitor and a pure monopolist. Assuming identical long-run costs, compare graphically the prices and outputs that would result in the long run under pure competition and under monopolistic competition. Contrast the two market structures in terms of productive and allocative efficiency. Explain: “Monopolistically competitive industries are characterized by too many firms, each of which produces too little.”
Question 1a. With the aid of a diagram explain how a monopolist determines how muchoutput to produce and what price to charge. [4 marks]b. Explain how the perfectly competitive firm decides whether to operate or shutdown in the short run. [4 marks]c. Explain why firms operating in monopolistically competitive markets probablywill not earn an economic profit in the long run. [4 marks]d. Why does interdependence of firms play a major role in oligopoly but not inperfect competition or monopolistic competition? [4 marks]
Monopolistically competitive firms can earn above-normal economic profits in the short run. (a) In a few sentences, explain what will happen in the long run that will prevent monopolistically competitive firms from continuing to earn above-normal economic profits. (b) What is different about monopolists and oligopolists that allows these firms to earn above-normal economic profits in the long run, when perfectly competitive and monopolistically competitive firms cannot? Explain your answer in a few sentences.
Answer c, d, and e. Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Under which of these market classifications does each of the following most accurately fit? (a) a supermarket in your hometown; (b) the steel industry; (c) a Kansas wheat farm; (d) the commercial bank in which you or your family has an account; (e) the automobile industry. In each case, justify your classification.
Assume the following equations describe the conditions for a typical firm in a monopolistically competitive market: P = 6 - .00075qd TC = 4,000 + 2q + .00025q2 where qd is the firm's quantity demanded, P is the commodity's price in dollars, TC is the firm's total cost in dollars and q is the quantity of output produced. Based upon these equations, answer the following questions: a. What quantity of output will the profit-maximizing firm produce in the market's long-run equilibrium? What price will the profit-maximizing firm establish in the long run? Explain how you know this firm is in long-run equilibrium? b. Determine the firm's allocatively efficient quantity of output? c. Determine deadweight loss that exists when this firm is in monopolisitc competition's long-run equilibrium.
Please provide examples of firms that belong to industries that are perfectly competitive, monopolistically competitive, duopolistic, oligopolistic or just pure monopolies. Explain the industry setup by providing examples of other firms (numbers) or market concentration statistics, some description of the product (is it standard, slightly differentiated, highly differentiated, or a crucial input that one firm has control of), and the nature of barriers to entry or exit in the industry (are they non-existent or significant, and what kinds of barriers these are).
There are two groups of firms below. Group 1: firms in the retail sector (e.g. Amazon; Wal-Mart; Target; Kohl's; Sears; Macy's) Group 2: firms in the wireless services industry (e.g. Verizon; AT & T; Sprint/T-Mobile) (this about telecommunication services, not about the sale of phones) For each group determine and explain if the group is monopolistic competitive or an oligopoly. You need to specific for both in which market structure the firms operate) Then choose one of the firms from one group. Using a Porter's analysis what are the threat to profitability?
Assume the following demand and cost function of a monopolistically competitive firm: P = 100 − 0.2Q TC = 30Q − 5Q q=2 + Q3 i. Determine the long run equilibrium price and output of a monopolistically competitive firm. ii. How is monopoly solution (price and output) different from that of monopolistic competitive solution (price and output)? iii. Find out the perfect competitive solution (price and output) and compare the results with monopoly and monopolistically competitive solution (price and output) iv. Why do results vary from perfect competition to monopolistic competition to monopoly?
The profit-maximizing/loss-minimizing level of output is determined where MR=MC for: all four industry types. pure competition and monopolistic competition. only pure competition. only regulated monopoly. Question 40 Graph A Graph B Graph C Graph D AR AR AR AR-MR WR AMR `MR Referencing the above diagram, Graphs A, B, C, and D, respectively, represent which of the following market models? Monopolistic competition, monopoly, oligopoly, and pure competition. Pure competition, oligopoly, monopoly, and monopolistic competition. O Oligopoly, pure competition, monopolistic competition, and monopoly. Oligopoly, monopoly, pure competition, and monopolistic competition.
There are four main forms of market, namely pure competitive market, monopolistic competition market, and marketoligopoly, and the monopoly market. These four forms of market can be viewed from the seller's point of view or in terms ofbuyer. Explain the difference between Pure Competition and Pure Monopoly Market!
Question 1 With the aid of a diagram explain how a monopolist determines how much output to produce and what price to charge. a) Explain how the perfectly competitive firm decides whether to operate or shut down in the short run. b) Explain why firms operating in monopolistically competitive markets probably will not earn an economic profit in the long run. c) Why does interdependence of firms play a major role in oligopoly but not in perfect competition or monopolistic competition?|