Question

1) All other things equal, firms with __________ will not change prices very often. low menu...

1) All other things equal, firms with __________ will not change prices very often.

low menu costs

high menu costs

price leadership

large network effects

market power

2)If new firms enter a monopolistically competitive industry, what happens to the demand for the product made by an existing firm?

demand will become more inelastic

demand will become perfectly elastic

demand will increase and become more elastic

demand will decrease and become more elastic

3) What is a characteristic seen in both perfect competition and monopolistic competition?

collusion among firms

many producers

firms selling identical products

barriers to entry

4) Consider perfect competition and monopolistic competition. In which market structure(s) will we see differentiated products?

Perfect competition

Monopolistic competition

Both of the above

None of the above

5)Consider perfect competition and monopolistic competition. In which market structure(s) will we see identical products being produced by all firms?

Perfect competition

Monopolistic competition

Both of the above

None of the above

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans.1- (B)

A menu cost is the cost incurred by a firm through changing its price. If there is high menu cost firm will not want to change price too often .

Ans.2- (D)

When new firms enter a Monopolistically competitive industry, more substitutes are available for the same good so total demand will be divided between new and old firms leading to a lower demand for existing firms. Moreover, since more substitutes are available so demand will become more elastic.

Ans.3- (B)

There are many producers in both perfect competition and Monopolistically competitive industry.

Ans.4- (B)

Perfectly competitive firms produce homogeneous products whereas Monopolistically competitive firms produce differentiated products.

Ans.5- (A)

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
1) Consider the four market structures. In which market structure are there many firms producing differentiated...
1) Consider the four market structures. In which market structure are there many firms producing differentiated goods? Perfect Competition Monopolistic Competition Oligopoly Monopoly 2) Consider the four market structures: (1). Perfect competition (2). Monopolistic competition (3). Oligopoly (4). Monopoly In which market structure(s) will we see firms that are generally not considered competitive and may have a large amount of market power to set their own prices? (1) only (1) and (2) (4) only (3) and (4) (2) and (3)...
List two ways the market structure of monopolistic competition is similar to a monopoly: 1.)      ...
List two ways the market structure of monopolistic competition is similar to a monopoly: 1.)                            [ Select ]                       ["both have single producer", "both earn positive long run economic profits", "both have a demand curve with a negative slope", "none of the answer choices are true"]       2.)                            [ Select ]                   ...
Complete all of the columns. For number of firms answer many, one or few. If products...
Complete all of the columns. For number of firms answer many, one or few. If products are homogenous or differentiated just put down one of those terms. Is price a decision variable and easy entry are answered with a yes or no. Thus, the previous answers are not long discussions. Distinguished by would be more descriptive, and examples would be short. For the example cells, put down an industry or a company, nothing too long. Market Structure Number of Firms...
36. Criticisms of monopolistic competitive firm behavior include all of these are criticisms of monopolistic competition...
36. Criticisms of monopolistic competitive firm behavior include all of these are criticisms of monopolistic competition advertising increases LRATC resources used in advertising and packaging are wasted and should be used in producing functional goods advetising raises prices for consumers 37. All of the following are characteristic of the advantages (to the firm) of advertising except advertising changes the shape of the demand curve toward a more inelastic configuration advertising changes the shape of the demand curve toward a more...
3. Compared with perfect competitors, other things equal, imperfect competitors who cannot practice price discrimination will...
3. Compared with perfect competitors, other things equal, imperfect competitors who cannot practice price discrimination will tend to produce ____________ and charge a ______________ price. a. less lower b. less higher c. more same d. more lower e. more higher 4. Sometimes firms are able to charge different prices to different consumers. We call this “price discrimination.” Why might it be in a firm’s interest to charge some consumers a lower price than other consumers? 5. The demand for airline...
Monopolistic competition in a market is characterized by: Select one: a. many firms, downward-sloping demand curves,...
Monopolistic competition in a market is characterized by: Select one: a. many firms, downward-sloping demand curves, and zero economic profit in the long run. Monopolistic competition is a: Select one: a. group of suppliers that try to act as if they were a monopoly. b. market that is dominated by a small number of firms. c. market with a large number of firms selling similar but not identical products. d. group of suppliers that try to act as if they...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit plus economic profit c) All of the above d) None of the above 1.17 When average product is decreasing… a) Marginal product is decreasing b) Marginal product is increasing c) Marginal product equals zero d) Average product is increasing 1.18 Figure 1 diagram shows a situation of… a) Economic profit under perfect competition b) Normal profit under perfect competition c) Economic profit under monopolistic...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit plus economic profit c) All of the above d) None of the above 1.17 When average product is decreasing… a) Marginal product is decreasing b) Marginal product is increasing c) Marginal product equals zero d) Average product is increasing 1.18 Figure 1 diagram shows a situation of… a) Economic profit under perfect competition b) Normal profit under perfect competition c) Economic profit under monopolistic...
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...
1. Firms can be price searchers in each of the following markets, except for ______________. A....
1. Firms can be price searchers in each of the following markets, except for ______________. A. perfect competition B. monopoly C. oligopoly D. monopolistic competition 2.Which of the following statements is false? A. Sunk costs are an important factor in determining entry into a market because these costs may be quite high. B. Sunk costs are an important factor in determining entry into a market because sunk costs cannot be recouped. C. Sunk costs are not relevant to the firm’s...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT