In a monopolistically competitive industry, firms spend a great deal of resources on advertising. One strategy...
In a monopolistically competitive industry, firms spend a great deal of resources on advertising. One strategy that is frequently followed is product differentiation. Do you think it is generally effective? Give an example of an industry in which firms have utilized this strategy, and evaluate its effect on profitability.
Homework Answers
Monopolistic market is a market, in which there are a number of buyers and sellers. Hence, in order to gain more consumer base, the producers produce differentiated products. While differentiating, every firm tries to excel it's product's overall quality. Hence, this is very effective in monopolistic market.
For example, let us take up an example of telecommunication industry. Reliance jio entered this industry with it's range of services with differentiated rates and specifications. And due to this, now reliance jio is one of the top operators of telecommunication industry. This inturn helped the firm in securing huge profits.
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In a monopolistically competitive industry, firms spend a great
deal of resources on advertising. One strategy...
Question 1 A monopolistically competitive industry has all of the following characteristics except there are no...
Question 1 A monopolistically competitive industry has all of the following characteristics except there are no barriers to entry. strategic behavior. product differentiation, a large number of firms. Question 2 In a monopolistically competitive industry, firms are large relative to the total market. firms are small relative to the total market. firms can be either large or small relative to the total market. there is only one firm. Question 3 Product differentiation can be used by firms to do all...
Which of the following is not a way that monopolistically competitive firms use advertising? A. inform...
Which of the following is not a way that monopolistically competitive firms use advertising? A. inform consumers about the features of its product B. test the market for new products C. inform consumers about prices D. distinguish its product from the products of other firms.
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal...
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QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping...
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of: O a monopoly firm. O a perfectly competitive firm. an oligopoly firm. a duopoly firm. QUESTION 4 Aside from advertising, how can monopolistically competitive firms increase demand for their products?! government edict. increasing its price. decreasing its price. Increasing the number of locations where it...
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Question Completion Status: QUESTION 21 When do new firms tend to enter a competitive industry When...
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36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
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Question 1 A monopolistically competitive industry has all of the following characteristics except there are no barriers to entry. strategic behavior. product differentiation, a large number of firms. Question 2 In a monopolistically competitive industry, firms are large relative to the total market. firms are small relative to the total market. firms can be either large or small relative to the total market. there is only one firm. Question 3 Product differentiation can be used by firms to do all...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
QUESTION 2 The demand curve faced by a monopolistically competitive firm is: flat. kinked. upward-sloping. downward-sloping QUESTION 3 Without a product differentiation, the demand curve for a monopolistically competitive firm would look like that of: O a monopoly firm. O a perfectly competitive firm. an oligopoly firm. a duopoly firm. QUESTION 4 Aside from advertising, how can monopolistically competitive firms increase demand for their products?! government edict. increasing its price. decreasing its price. Increasing the number of locations where it...
2/13/2020 Ch 9 HW (pa) Do a Web search to investigate the various firms providing corrective laser eye surgery (use keyword "laser eye surgery" or some combination of those terms...) Compare the firms by Investigating how they are attracting customers, similarities and differences, how many firms does there appear to be. Which market structure do you feel they belong (perfect competition, monopoly, monopolistic competition, or oligopoly)? Why? As you develop your argument, detail the reasons you think laser eye surgery...
Question Completion Status: QUESTION 21 When do new firms tend to enter a competitive industry When the large firms in the industry are earning zero profit when the smaller firms are leaving the industry when the new entrants can earn positive profits when there is an absence of fixed costs in the long run QUESTION 22 Marginal cost can be expressed as the ratio of the price of labor and the marginal product of labor only when labor is held...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
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