Homework Answers
Perfectly competitive market and monopolistically competitive market have the least potential to earn positive economic profits in the long run due to the existence of free entry and exist. When firms in these markets earn positive economic profits in the short run, new firms will enter the market and thus in the long run chances of earning positive economic profits disappear. The answer is option (a) and (b).
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Which two of the following market types have the least potential for firms to earn positive...
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...
Which of the following is not true of both firms in monopolistic competition and firms in...
Which of the following is not true of both firms in monopolistic competition and firms in perfect competition? A. Both types of firms produce at minimum ATC. B. Both types of firms produce where MC MR. C. Both types of firms have the possibility of short-run economic profits or losses. O D. Both types of firms can earn zero economic profits in long-run equilibrium
A certain industry is characterized by many small firms that have no control over the price...
A certain industry is characterized by many small firms that have no control over the price they charge, and they earn zero economic in the long run. Which market structure does this describe? Select one: O a. perfect competition O b. monopolistic competition O c. oligopoly O d. monopoly
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...
Which of the following options best describes market structures from the lowest to the highest degree...
Which of the following options best describes market structures from the lowest to the highest degree of market power? Perfect competition, monopolistic competition, oligopoly, monopoly Oligopoly, monopoly, monopolistic competition, perfect competition Monopoly, perfect competition, oligopoly, monopolistic competition Monopolistic competition, oligopoly, monopoly, perfect competition A cable company has determined that the marginal revenue from an additional subscriber is $15, and the marginal cost of providing cable services is $5. Based on this information, what should the company do? Increase the quantity...
In a market operated by a cartel, if price is $30 which of the following must...
In a market operated by a cartel, if price is $30 which of the following must be true? Marginal revenue is 30 and marginal cost must be less than $30. Marginal revenue must be zero ATC must be under $30 Marginal Revenue and marginal cost must be under $30 Which of the following is the best example of oligopoly? paper towels Ogreen beans auto repair Apples If a oligpolist is experiencing profits in the short-run, then in the long-run Firms...
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...
Firms in which of the following market structure are NOT price setters? oligopoly O monopoly O...
Firms in which of the following market structure are NOT price setters? oligopoly O monopoly O perfect competition O monopolistic competition
identify all types of market competition where firms face a downward sloping demand curve a) perfect...
identify all types of market competition where firms face a downward sloping demand curve a) perfect competition b) monopolistic competition c) oligopoly d) monopoly
10. Ford Motor Company falls into which market structure?
10. Ford Motor Company falls into which market structure? a. perfect competition b. monopolistic competition c. pure oligopoly d. differentiated oligopoly e. monopoly11. The existence of price discrimination in a market is evidence of which of the following? a. The market is NOT a perfectly competitive market. b. Firms in the industry will earn zero economic profit in the long-run. c. Most firms in the industry will go out of business soon. d. The government is over-regulating the market. 12. Compared to a firm in perfect competition, the monopolistically...
Which of the following is not true of both firms in monopolistic competition and firms in perfect competition? A. Both types of firms produce at minimum ATC. B. Both types of firms produce where MC MR. C. Both types of firms have the possibility of short-run economic profits or losses. O D. Both types of firms can earn zero economic profits in long-run equilibrium
A certain industry is characterized by many small firms that have no control over the price they charge, and they earn zero economic in the long run. Which market structure does this describe? Select one: O a. perfect competition O b. monopolistic competition O c. oligopoly O d. monopoly
In a market operated by a cartel, if price is $30 which of the following must be true? Marginal revenue is 30 and marginal cost must be less than $30. Marginal revenue must be zero ATC must be under $30 Marginal Revenue and marginal cost must be under $30 Which of the following is the best example of oligopoly? paper towels Ogreen beans auto repair Apples If a oligpolist is experiencing profits in the short-run, then in the long-run Firms...
Firms in which of the following market structure are NOT price setters? oligopoly O monopoly O perfect competition O monopolistic competition
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