Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 10, Problem 3SQ
To determine
The profit of the monopolistic competitive firms in the long run.
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Students have asked these similar questions
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.
The cost of producing a tube of tooth paste is $0.05. If the market for tooth paste is monopolistically competitive, a manufacturer who charges $0.05 for each bottle will ________.
a.
exit the industry in the long run
b.
earn zero economic profits in the short run
c.
incur a loss in the short run
d.
shut down production in the short run
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.
Chapter 10 Solutions
Micro Economics For Today
Ch. 10.1 - Prob. 1YTECh. 10.5 - Prob. 1GECh. 10.6 - Prob. 1YTECh. 10 - Prob. 1SQPCh. 10 - Prob. 2SQPCh. 10 - Prob. 3SQPCh. 10 - Prob. 4SQPCh. 10 - Prob. 5SQPCh. 10 - Prob. 6SQPCh. 10 - Prob. 7SQP
Ch. 10 - Prob. 8SQPCh. 10 - Prob. 9SQPCh. 10 - Prob. 10SQPCh. 10 - Prob. 11SQPCh. 10 - Prob. 12SQPCh. 10 - Prob. 13SQPCh. 10 - Prob. 1SQCh. 10 - Prob. 2SQCh. 10 - Prob. 3SQCh. 10 - Prob. 4SQCh. 10 - Prob. 5SQCh. 10 - Prob. 6SQCh. 10 - Prob. 7SQCh. 10 - Prob. 8SQCh. 10 - Prob. 9SQCh. 10 - An oligopoly is a market structure in which a. one...Ch. 10 - Prob. 11SQCh. 10 - A common characteristic of oligopolies is a....Ch. 10 - Prob. 13SQCh. 10 - Prob. 14SQCh. 10 - Prob. 15SQCh. 10 - Prob. 16SQCh. 10 - Prob. 17SQCh. 10 - Prob. 18SQCh. 10 - Prob. 19SQCh. 10 - The kinked oligopoly demand curve is a result of...
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- When firms in monopolistic competition are making an economic profit, firms will a.enter the industry, and demand will decrease for the original firms. b.enter the industry and then will exit the industry c.enter the industry, and demand will increase for the original firms. d.exit the industry, and demand will increase for the firms that remain.arrow_forwardExercise A.7. If you were thinking about getting into the ice cream business, would you try to make an ice cream exactly like the (successful) brands that already exist? Explain your decision using the ideas about monopolistic competitionarrow_forwardA perfectly competitive firm is considered to be more generous in terms of price and quantity of output in comparison to firm belonged to monopoly and monopolistic markets. a. Demonstrate a simplified graph to show that a perfectly competitive firm incurring loss, but has reached the minimum condition to keep operating in the market. b. Does the firm operate in the short or long run based on your answer to question (a). Why?arrow_forward
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- Economists recognize all of the following market types except ________. Select one: a. oligopolistic competition b. monopoly c. oligopolistic monopoly d. monopolistic competition e. pure competitionarrow_forwardHere is a graph for monopolistic competition in long run equilibrium. After seeing thisgraph, explain why this is bad news for an individual food truck business.arrow_forwardWhich of these markets is most likely to be identified as monopolistic competition? Group of answer choices a. shoes b. corn c. gasoline d. shoes, corn and gasoline are all like monopolistic competitionarrow_forward
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