Question

Which of the following is an example of product differentiation​? A. I prefer Nike shoes while...

Which of the following is an example of product

differentiation​?

A.

I prefer Nike shoes while my friend prefers Puma shoes.

B.

Columbia sells expensive winter jackets.

C.

Adidas sells jackets while DeBeers sells diamonds.

D.

Cindy loves chocolate flavored icecream.

2.In the long​ run, monopolistically competitive firms are​ ________ to perfectly competitive firms because​ ________.

A.

​similar; both firms produce at the minimum ATC

B.

not​ similar; monopolistically competitive firms set P ​= MC to maximize profits

C.

​similar; both firms earn zero economic profit

D.

not​ similar; monopolistically competitive firms can earn an economic profit and perfectly competitive firms cannot

Homework Answers

Answer #1

1) A

Product differentiation

In economics, product differentiation is the process of distinguishing a product or service from others, to make this product more attractive to a particular target market. It involves differentiating it from competitors' products as well as a firm's own products. Nike shoes and puma shoes can be differentiated on the basis of their quality , how comfortable they are etc.

2) C

Both perfectly competitive industry and monopolistically competitive industry have free entry and exit in the long run which leads a zero economic profit for the firms of these industries in the long run. Hence, they are similar.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
I can seem to figure out these homework problems: Which of the following is a feature...
I can seem to figure out these homework problems: Which of the following is a feature of a perfectly competitive market? Large number of influential buyers and sellers Perfect information Firms set the prices Differentiated products Which of the following is NOT a feature of a perfectly competitive market? Homogenous products Unrestricted entry and exit Perfect information Large number of relatively small buyers None of the other options. They are all features of a perfectly competitive market. Which of the...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises the market price above marginal cost and produces a smaller output.             b. it produces a greater output but charges a lower price.             c. it produces the same quantity while charging a higher price.             d. all surplus goes to the producer.             e. it leads to a smaller producer surplus but greater consumer surplus. 2. The demand curve of a monopolist typically...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product...
1.A firm is a pure monopoly when: a.it is the only seller of a unique product and barriers to entry prevent other sellers from entering the market in the long run. b.it is the only seller of a product that has very few close substitutes and entry into the market in the long run is unrestricted. c.there are only a few other very large firms selling similar products. d.it can sell all it can produce at any price it chooses....
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds...
Assume that consumers view tax preparation services as undifferentiated among producers, and that there are hundreds of companies offering tax preparation in a given market. The current market equilibrium price is $120. Jojo’s Tax Service has a daily, short-run total cost given by TC = 100 + 4Q2. Answer the following questions: How many tax returns should Jojo prepare each day if her goal is to maximize profits? How much will she earn in profit each day? A perfectly competitive...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the...
1. Which is statement is true? I. A single-price monopolist charges a price equal to the marginal cost of the last unit sold. II. A monopolist with positive marginal costs and facing a linear demand curve always sets a quantity (or price) such that it sells on the elastic section of the demand curve. III. A monopolist regulated by marginal-cost pricing regulation sells at a price that covers its variable and fixed costs of production, but it still causes a...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT