A. is correct
Firms in perfect competition sell in homogeneous products which makes no sense to advertise.
Help with #2 please. 2. Which explains why individual firms under pure competition would not find...
1. Which of the following best explains why the number of firms is fixed in the short run in perfect competition? Marginal costs are too high to allow firms to operate profitably. Firms would wait to see how the long run develops. Capital is fixed in the short run. Firms would never want to enter a perfectly competitive industry. 2. Which of the following best explains why the number of firms is fixed in the short run in perfect competition?...
In monopolistic competition: a.firms advertise to increase demand for their product. b.entry of new firms shifts the demand curve for existing firms to the right. c.when some firms exit, the demand curve for the firms that remain in the industry shifts to the left. d,firms earn large economic profits in the long run.
In pure or perfect competition: OA. there are no barriers to entry B. firms are producing a standardized product O C. the individual firm faces a perfectly elastic demand curve O D. all of the above E. none of the above
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic profits. negative economic profits. Positive, zero, or negative economic profits. QUESTION 8 Which of the following statements best describes firms under monopolistic competition? Profits will be positive in the long run. Price always equals average variable cost. In the long run, positive economic profit will be eliminated. Marginal revenue equals minimum average total cost in the short run. QUESTION 9 Which of the following...
pls can someone help me with this pls? review carefully Explain how advertising influences the demand for a firm's product. A. Successful advertising increases demand for the firm's product and increases economic profit. New firms enter the market, and demand decreases for any one firm in the market. B. Successful advertising always increases demand for the firm's product in the short run and in the long run. Firms would not advertise if this was not true. C. Any advertising makes...
Answer Only Please :) 1) Perfect competition is characterized by numerous firms. False True 2)Once a firm's marginal revenue curve is known, the output level can be determined. Group of answer choices True False 4)A firm will shut down in the short run if Group of answer choices AVC > AFC. P > AVC. TR > TC. P < AVC. 5)Helga owns Viking, Inc., started with her $100,000 inheritance. Helga's accountant informs her that her firm earned a profit of...
The characteristics of perfect competition are: ___________________, _____________________, ________________________ ___________________, ___________________ 2. The demand curve in perfect competition is: ______________ (Shape or slope) 3. The firm operates at the quantity where _________ equals ___________. 4. Total profit is equal to ___________ minus ________________. 5. The marginal revenue curve in perfect competition is: ______________ (Shape or slope) 6. The entrance of one or two new firms (in perfect competition) does what to market price? _______________________________________, 7. For a firm to operate,...
For questions (10 ) t hrough (25) you fill in the blank space with the correct word: An illegal monopoly must have (10)________________that protect him from competition entering his market. He cannot be selling a product that has many close (11) ________ .His demand curve is very steep because demand for his product is very (12)_________ The monopolist will restrict his ____________to get the highest price. Long run market demand must be (14)______for a Cartel to survive and do well....
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure? Many sellers, each small in size relative to the overall market. Few sellers. Differentiated product. Easy, low-cost entry and exit. QUESTION 2 Which of the following is the best example of a monopolistic competitor? Wheat farmers. Restaurants. Air Canada. General Motors. QUESTION 3 In the long run, both monopolistic competition and perfect competition result in: a wide variety of brand-name choices for consumers. an...
1. The numbers listed under each item below are the costs for producing Product A, Product B, and Products A and B together. Which set of costs exhibits economies of scope? a. 100, 150, 250 b. 100, 150, 260 c. None of these cost listings exhibit economies of scope d. 100, 150, 240 2. When MC rises above AC, then we know that a. AC declines b. AC remains the same c. AC is negative d. AC increases 3. The...