Question

Which of the following is the best example of a monopolistically competitive market? a. the electricity...

Which of the following is the best example of a monopolistically competitive market?

a. the electricity market

b. the restaurant market

c. the market for breakfast cereal

d. the wheat market

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The right answer is option B, that is, the restaurant market. As we know, in the monopolistically competitive market, there is a large number of buyers and sellers, and there are no barriers to entry and exit. Firms in the monopolistic competition sells the differentiated product that allow them to control the prices charged for their products. The restaurant market is an example of monopolistic competitive market because the restaurant sells the differentiated food which is somewhat different from the competitors and they all charge different prices for the food being sold in the market.

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
Which of the following is the best example of a firm operating in a monopolistically competitive...
Which of the following is the best example of a firm operating in a monopolistically competitive market? a Nebraska corn farmer Applebee’s, a casual dining restaurant* the U.S. Postal Service Chevron, a gasoline station electric companies prior to deregulation
Which of the following is not an example of a monopolistically competitive market? A) automobile producers...
Which of the following is not an example of a monopolistically competitive market? A) automobile producers B) gyms and fitness centers C) coffee shops D) makers of women's clothing
The automobile industry is an example of a(n): a. monopolistically competitive market because firms in the...
The automobile industry is an example of a(n): a. monopolistically competitive market because firms in the automobile industry face an upward-sloping demand curve. b. monopolistically competitive market for legal reasons. c. oligopoly for legal reasons. d. monopolistically competitive market because it experiences economies of scale. e. oligopoly because each firm must produce a large amount of output before it can achieve low average costs.
Which of the following can occur as a result of advertising in a monopolistically competitive market?...
Which of the following can occur as a result of advertising in a monopolistically competitive market? Check all that apply. a) Positive short-run profit b) Expansion of the market c) Negative long-run profit d) Higher long run product price
Which of the following is most likely a monopolistically competitive market? a) Lobsters b) Blue jeans...
Which of the following is most likely a monopolistically competitive market? a) Lobsters b) Blue jeans c) Segway scooters d) Commercial aircraft please explain the answer!
Consider the monopolistically competitive market structure, which has some features of a competitive market and some...
Consider the monopolistically competitive market structure, which has some features of a competitive market and some features of a monopoly. Complete the following table by indicating if each attribute characterizes a competitive market, a monopolistically competitive market, both, or neither. Check all that apply. Attributes Competitive Market Monopolistically Competitive Market Few sellers Price equals average total cost in the long run Product differentiation Identical products
25. __________ Which of the following is true of long‐run equilibrium price in a monopolistically competitive...
25. __________ Which of the following is true of long‐run equilibrium price in a monopolistically competitive market? A) It is equal to average total cost. B) It is less than average total cost. C) It is higher than average total cost. D) It is lower than marginal cost. 27. __________ Total social surplus is maximized in a(n) ________. A) monopolistically competitive market B) perfectly competitive market C) oligopoly D) monopoly 28. __________ A firm is said to have market power...
Give an example each of an oligopolistic and a monopolistically competitive market. Compare the barriers to...
Give an example each of an oligopolistic and a monopolistically competitive market. Compare the barriers to entry in these two markets. Why do regulatory authorities monitor oligopolies more aggressively than monopolistically competitive markets?
Suppose that the market for shampoo can best be characterized as monopolistically competitive. If this is...
Suppose that the market for shampoo can best be characterized as monopolistically competitive. If this is the case, should firms that operate in the market be prosecuted by antitrust authorities on account of the potential inefficiency of the market outcome? Explain why or why not.
Give an example of a monopolistically competitive market that could become a monopolistic or dominant firm...
Give an example of a monopolistically competitive market that could become a monopolistic or dominant firm market under certain possible circumstances. What are those circumstances and how will they make this market less competitive?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT