Monopolistic competition is a type of O price discrimination. O advertising strategy. O market structure. oligopoly.

Econ 1

ASAP

Air Canada and WestJet recently cut their prices for flights between Toronto and Edmonton to $199. In response, Porter Airlines cut its price from $239 to $199 for flights between Toronto and Edmonton in order to remain competitive. Based on this example, what degree of competition exists in the airline industry? Select one: O a. monopolistic competition O b. oligopoly O C. perfect competition O d. not enough information to answer O e. Monopoly B

QUESTION 1 Press F11 to exit full screen Which firm would earn profit in the long-run? O a monopolist firm. O a monopolistically competitive firm. O an oligopoly firm. O a perfectly competitive firm. QUESTION 2 Refer to the graph below for a monopolistically competitive firm. ↑Price MC 160 140 ATC 123.33 Demand 90 56.67 MR 100 133.33 154.92 Quantity If the above firm chose to produce at 100 units then the firm will be O earning a profit O incurring a loss O there is no profit and no loss O the firm can earn, profit, loss or break even

Firm will exit a monopolistically competitive market if: O marginal revenue is greater than marginal cost. O price is greater than average total cost. O price is greater than marginal cost. O price is less than average total cost. marginal revenue is greater than average tal cost.

What is the name for a group of firms operating in an oligopoly that have a formal agreement to collude to produce the monopoly output and sell at the monopoly price? O Cartel O Collusion Trust Union O Trade Organization