Homework Answers
Increasing the number of sellers shifts supply - is correct
When there are positive economic profit new firms will enter that eliminates economic profit.
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In monopolistic competition, what market force works against short-run profits? Increasing the number of sellers shifts...
QUESTION 7 Monopolistic competitive firms in the long run earn: positive economic profits. zero pure economic...
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...
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure?...
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...
In monopolistic competition: a.firms advertise to increase demand for their product. b.entry of new firms shifts...
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 perfect competition as well as in monopolistic competition, a. profit is positive in a long-run...
In perfect competition as well as in monopolistic competition, a. profit is positive in a long-run equilibrium for each firm. b.entry and exit by firms are restricted. c. there are many firms in a single market. d. marginal revenue is equal to price for each firm. ECTION 22 Monopolistic competition differs from perfect competition because in monopolistically competitive markets a. all firms can eventually earn economic profits. b. each of the sellers offers a somewhat different product. C. strategic interactions...
Which market structure can earn long-run economic profits? a. Perfect competition b. Monopolistic competition c. Oligopoly...
Which market structure can earn long-run economic profits? a. Perfect competition b. Monopolistic competition c. Oligopoly d. Monopoly e. c and d only All firms produce where a. marginal benefits are greater than marginal profits b. short-run profits are less than long-run profits c. marginal revenues are greater than or equal to marginal costs d. average total costs are greater than marginal costs A perfect competitor is a __________ and can earn economic profits ____________. a. price maker, in both...
1. MR = MC=P holds for A. all firms B. monopoly C. monopolistic competition...
1. MR = MC=P holds for A. all firms B. monopoly C. monopolistic competition D. perfect competition 2. Consumer's surplus is A. demand price plus equilibrium price B. supply price above market price C. demand price plus supply price D. demand price less equilibrium price 3. In the short run, a monopolist may a. attract other firms into the industry b. upgrade technology c. incur loss d. charge the...
Show and explain why profits go to zero in the long run under monopolistic competition. Hint: Sta...
Show and explain why profits go to zero in the long run under monopolistic competition. Hint: Start with a firm making profit and then explain what happens next. Explain why economists consider monopolistic competition inefficient. What are the benefits of allowing this inefficiency?
Show and explain why profits go to zero in the long run under monopolistic competition. Hint: Start with a firm making profit and then explain what happens next. Explain why economists consider monopolistic competition inefficient. What are...
1. How does the product in a monopolistic competition compare with the product in a competitive...
1. How does the product in a monopolistic competition compare with the product in a competitive market? 2. How does the seller’s demand curve in a monopolistic competition compare with the seller’s demand curve in competition? 3. Why will an monopolistic competitive firm only lose some of its customers, but not all when it raises its price? 4. What feature is the “hallmark” in monopolistic competition? 5. What short-run profit maximizing rule do monopolistic competitive firms follow? 6. If economic...
Suppose a monopolistic competitor faces the following costs and demand in the short run: Part 1 (1...
Suppose a monopolistic competitor faces the following costs and demand in the short run: Part 1 (1 point) What is the amount of profit this monopolistic competitor will make in the short run? Part 2 (4 points) Since this is a monopolistic competitor, the number of firms competing in the long run will(a) , leading the profits for this firm to (b) If this were a monopoly instead, we would expect the number of firms to (c) and profits to (d)
Q. If a firm is earning short-run economic profits, in the long run Group of answer...
Q. If a firm is earning short-run economic profits, in the long run Group of answer choices a. firms enter the industry, the market supply curve shifts rightward, and the market price falls. b. firms exit the industry, the market supply curve shifts rightward, and the market price falls. c. firms exit the industry, the market supply curve shifts leftward, and the market price falls. d. firms enter the industry, the market supply curve shifts rightward, and the market price...
In perfect competition as well as in monopolistic competition, a. profit is positive in a long-run equilibrium for each firm. b.entry and exit by firms are restricted. c. there are many firms in a single market. d. marginal revenue is equal to price for each firm. ECTION 22 Monopolistic competition differs from perfect competition because in monopolistically competitive markets a. all firms can eventually earn economic profits. b. each of the sellers offers a somewhat different product. C. strategic interactions...
Show and explain why profits go to zero in the long run under monopolistic competition. Hint: Start with a firm making profit and then explain what happens next. Explain why economists consider monopolistic competition inefficient. What are the benefits of allowing this inefficiency?
Show and explain why profits go to zero in the long run under monopolistic competition. Hint: Start with a firm making profit and then explain what happens next. Explain why economists consider monopolistic competition inefficient. What are...
Suppose a monopolistic competitor faces the following costs and demand in the short run: Part 1 (1 point) What is the amount of profit this monopolistic competitor will make in the short run? Part 2 (4 points) Since this is a monopolistic competitor, the number of firms competing in the long run will(a) , leading the profits for this firm to (b) If this were a monopoly instead, we would expect the number of firms to (c) and profits to (d)
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