Question

In general, there is a(n) ________ relationship between the height/strength of the barriers and the number...

In general, there is a(n) ________ relationship between the height/strength of the barriers and the number of firms in an industry.

direct

inverse

constant

random

f firms are earning economic profit in a monopolistically competitive market, which of the following is most likely to happen in the long run?

Some firms will leave the market.

Firms will join together to keep others from entering.

New firms will enter the market, thereby eliminating the economic profit.

Firms will continue to earn economic profit.

Which of the following represents a good example of an oligopoly?

the agriculture industry

a public utility

the automobile industry

the restaurant industry
Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There is an inverse relationship. If the barriers to entry are very strong, then there will be very few firms in the industry. this is because entry barriers do not allow potential firms to enter the market and help the existing firms in continuing with their profits. Select the second option

Third option is correct.there are weak barriers to entry in monopolistically competitive market which allows new firms to enter when they are economic profits in the short run. As the continue to enter the price is reduced and competition is increased which dries all the economic profit out.

Automobile industry is a good example of oligopoly with strategic decision making.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
When the existing firms in a monopolistically competitive industry earn above-normal profit: A. New firms enter...
When the existing firms in a monopolistically competitive industry earn above-normal profit: A. New firms enter into the market, and entry continues until firms earn normal profit B. New firms have an incentive to enter the market but are legally barred from doing so. C. Their cost structure automatically changes. Eliminating the additional profit. D. New firms have no incentive to enter the market. E. They increase their production and lower the price level Which of the following is a...
1) A market that has a single supplier of a product with no close substitutes and...
1) A market that has a single supplier of a product with no close substitutes and barriers to entry is a) an oligopoly. b) monopolistically competitive. c)a pure monopoly. 2) Barriers to entry: Group of answer choices a) guarantee that a firm will always earn positive economic profit. b) cannot be maintained in the long run because other firms will always find a way to enter a profitable industry. c) are obstacles that make it impossible or unprofitable for new...
QUESTION 8 Which of the following is NOT one of features characterizing market structures? the number...
QUESTION 8 Which of the following is NOT one of features characterizing market structures? the number and size of firms the likelihood of new firm’s entering a market the level of capital investment in research and development the degree of product differentiation 2.5 points    QUESTION 9 Based on your knowledge about market structures, you would classify the ________ market (industry) as monopolistically competitive. Agriculture Toothpaste Crude oil Local telephone service 2.5 points    QUESTION 10 In which of these...
Which of the following is most likely produced in a monopolistically competitive market? a. Automobiles b....
Which of the following is most likely produced in a monopolistically competitive market? a. Automobiles b. Wheat c. Oil d. Fast food e. Soybeans Oligopolists are more sensitive to the pricing and output policies of their rivals when: a. there are many firms in the industry. b. all firms produce identical products. c. there are barriers to entry. d. there is freedom of entry and exit. e. their products are highly differentiated. It is harder to explain the behavior of...
If a competitive firm can sell a bushel of soybeans for $25 per bushel and it...
If a competitive firm can sell a bushel of soybeans for $25 per bushel and it has an average variable cost of $20 per bushel, and the marginal cost is $22 per bushel, the firm should: expand output. reduce output. increase price. cut output to zero. In the long run, the competitive firm always produces at the: minimum of the average variable cost curve. minimum of the average total cost curve. maximum possible point of production. minimum of the marginal...
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...
QUESTION 1 In a constant-cost industry where firms have identical cost, what will happen to the...
QUESTION 1 In a constant-cost industry where firms have identical cost, what will happen to the profit of the firms in the long run? Some firms will make positive economic profit, while some firms will make zero economic profit. All firms will be making zero economic profit. Only firms with positive economic profit will stay in the industry, because firms with negative or zero economic profit will exit the industry. Firms can be making positive, zero, or negative economic profit....
g 1) Farmers can plant either corn or soybeans in their fields. Which of the following...
g 1) Farmers can plant either corn or soybeans in their fields. Which of the following would cause the supply of soybeans to increase? A) an increase in the price of soybeans B) a decrease in the price of corn C) an increase in the demand for corn D) an increase in the price of soybean seeds E) an increase in the price of tomatoes 2) For a perfectly competitive firm, which of the following is not trueat profit maximization?...
1. When total revenue is less than variable costs in the short run, what will a...
1. When total revenue is less than variable costs in the short run, what will a firm in a competitive market do? Select one: a. It will continue to operate as long as average revenue exceeds marginal cost. b. It will shut down. c. It will continue to operate as long as average revenue exceeds average fixed cost. d. It will always exit the industry. 2. Consider a monopoly that is able to practice perfect price discrimination. Which of the...
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....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT