Explain in what sense historical accidents can play an important role in establishing a center (or a cluster) of an industry when the industry is strongly influenced by external economy in a monopolistic competition.

Explain in what sense historical accidents can play an important role in establishing a center (or a cluster) of an industry when the industry is strongly influenced by external economy in a monopolistic competition.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: In which market structure would you place each of the following products: monopoly, oligopoly,…

A: Monopoly: A market structure in which there is only one seller of a product.Oligopoly: A market…

Q: Explain any four features of the monopolistic competition in the economy

A: The determination of the quantity and the price depend on the various types of the market…

Q: Differentiate between oligopoly and pure monopoly.

A: Oligopoly is the market structure in which there are few firms which sell either differentiated or…

Q: What are the common characteristic for perfect competition, monopoly and monopolistic competition

A: Market competition refers to the competition that exists between the firms.

Q: Predatory pricing occurs when a firm intentionally prevents competition by pricing their product at?

A: Firms compete in the market to acquire the market share to earn profits. If the market share is high…

Q: In the long run equilibrium, which of the following will be correct for both perfectly competitive…

A: Perfect competition is a market structure in which there is a large number of buyers and sellers.…

Q: What is the term used to describe a situation where the price of a good or service is determined by…

A: Market refers to a place at which buyers and sellers of goods or services comes in contact with each…

Q: Does a monopolistic competitive produce too much or too little output compared to the most effective…

A: Monopolistic competition refers to an imperfect market structure in which many firms and buyers. The…

Q: A market equilibrium of competing firms according to Cournot Model is more efficient than a…

A: Cournot Model: Named after a very famous mathematician Agustin Cournot, it is an economic model in…

Q: An oligopolist faces a kinked demand curve.  In your own words, describe why firms face this…

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

Q: A market consisting of many sellers who sell similar but not identical products is an example of…

A: Market structure are of different forms each having its own set of features and characteristics.…

Q: The key difference(s) between monopoly and oligopoly is

A: A market arrangement known as a monopoly has a single seller controlling the whole market. The…

Q: Which of the following is NOT a characteristic of a Monopolistic Competition? Select one: a)…

A: The degree of competition in a market is always referred to in these types of market arrangements.…

Q: Explain how concentration ratios and barriers to entry into the market relate to Monopolistic…

A: Market:- A market is a location where people may come together to exchange products and services.…

Q: For each of the following characteristics, say whether it describes a monopolistic competitive or…

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

Q: Comparing Market Types Another Name for Firms Special Traits Kind of Number of Producers Type of…

A: There are different types of market structures. The most suitable for from the four will be…

Q: With the aid of practical examples ,distinguish between the following concepts ,a)increasing returns…

A: Increasing returns to scale and decreasing returns to scale Returns to scale refer to the ratio of…

Q: Which of the following is NOT an example of monopolistic competition? Group of answer choices…

A: A monopolistically competitive market is considered aa a common market form according to the…

Q: Which of the following goods or services are produced by oligopolists? Check all that apply.…

A: In this market structure, a small number of firms dominate the market. These firms control the…

Q: Select one or two examples of an industry characterized by monopoly and discuss how each example…

A: A monopoly is a market structure characterized by the existence of a single firm as the producing…

Q: State and explain two (2) key differences in market structure between Monopolistic Competition and…

A: Four different types of market structures in an economy are (1) perfect competition, (2) monopoly,…

Q: Peter, John, and James are discussing how to share three chocolate bars and three bags of chips. For…

A: Pareto efficiency:Pareto efficiency is a situation when in any given economy the allocation is such…

Q: Which of the following is NOT a characteristic of monopolistic competition? A)product…

A: Monopolistic competition describes a market in which a large number of companies compete for the…

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…

Q: A firm's influence over the price of the good produced in monopoly, oligopoly, monopolistic…

A: The monopoly has an impact on the pricing of commodities. A monopoly's price is the market price,…

Q: Discuss gains from international trade in the presence of heterogeneous firms in a monopolistically…

A: International Trade is defined as the exchange of goods and services among two or more nations.…

Q: Comparing Market Types Special Traits Kind of Another Name for Number of Producers Type of Market…

A: There are different types of markets that are classified based on the size of the market, product…

Q: Assume that the following data describe the condition of the banking system. Use this information to…

A: M1 considers the most liquid part of the money supply like currency and assets that are or can be…

Q: The figure below shows the demand (D, MR) and cost (MC, ATC) curves for six oligopolies in the…

A: Under perfectly competitive market, the short run equilibrium is when price is equal to marginal…

Q: Each of the statements below describes a characteristic of the following market structures: perfect…

A: There are several types of market structures that exist in economics, including: Perfect…

Q: Relate how the ability of monopolistic competition to deliver product differentiation helps to…

A: Monopolistic competition is considered imperfect competition, wherein many producers exist who sell…

Q: Compare graphically welfare implications of the long run equilibrium of a monopolistically…

A: Perfectly competitive industry: An industry is considered to be a Perfectly competitive industry in…

Q: If the price of electric automobiles were to decrease substantially, the demand curve for gasoline…

A: The substitute goods are used for each other. A rise in price of one good leads to rise in demand…

Q: Which of the following situations is representative for long-run equilibrium in monopolistic…

A: A monopolistic industry is one in which a large number of businesses compete for the same (but not…

Q: Evaluate the demand curve of firms that operate in Monopolistic competition

A: Monopolistic competition is a form of imperfect competition in which several producers compete…

Q: Refer to Figure 3. Assume a monopolistic competitive environment: From the 4 graphs depicted, which…

A: In a Monopolistic competition, The firm will produce where MR = MC MR is the marginal revenue MC…

Q: Market Structure Kinds of Barriers to Number of Prices: Long-Run: Advertise? Products: Entry: Firms:…

A: Market Structure depicts how firms are being differentiated and also categorised based upon the…

Question

Explain in what sense historical accidents can play an important role in establishing a center (or a cluster) of an industry when the industry is strongly influenced by external economy in a monopolistic competition.

Definition Definition Form of market structure in which there are a large number of sellers of a particular product, with each seller selling somewhat differentiated but close substitutes to the product sold by other sellers. Features of monopolistic competition include: Large number of buyers and sellers Differentiated products Free entry and exit of the firms in the market

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

The fast-food restaurants would be an example of which market model? Monopolistic competition Pure competition Pure monopoly Oligopoly
Economic
27
In the model of monopolistic competition, an increase in industry output will cause individual firms' demand curves to become ________, which will ________ demand for higher-priced goods and ________ demand for lower-priced goods.
This industry type is likely to be the most inefficient by producing less and driving the price up: Oligopoly Perfect Competition More than one of these is correct Monopolistic Competition Pure Monopoly
Question 14 An oligopoly is a market structure, dominated by more firms than a monopolistic structure. False True
Explain why the demand curve facing a firm under the monopolistic competition is the negative slope
Describe three possible barriers to entry that may be used to maintain monopolistic conditions in an industry
(a) Consider 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.(b) 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. Use relevant diagrams to support your answer.
Discuss why a producer in an oligopolist market ("few" competitors) will pay closer attention to their competitors than a producer in a highly competitive market ("many" competitors).
The practice of product differentiation in the monopolistic competition market enables firms to compete in three areas. What are these areas?
As their respective names imply, monopoly and monopolistic competition are the most similar of the four market structures