Consider gas stations. Could it be said that the only thing that separates a monopolistically competitive...
Consider gas stations. Could it be said that the only thing that separates a monopolistically competitive industry from a perfectly competitive industry is a little advertising?
Homework Answers
Answer - No , only the advertising of the product cannot be the only difference in perfect competition and monopolistic market . It also practises the various product differentiation techniques such as the various capacity of the gas tankers as per the need , various composition of gases as per requirement, various kind of oil such as power oil or normal oil . This is called the product differentiation. The price differentiation techniques also separates the perfect competition from monopolistic competition. Also the demand of the perfect competition is perfect elastic whereas demand of monopolistic market is less elastic than perfect competition. Which allows the gas station owners to charge different price from different users.
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Consider gas stations. Could it be said that the only thing that
separates a monopolistically competitive...
Consider the monopolistically competitive market structure
Conditions for monopolistic competition Consider the monopolistically competitive market structure, which has some features of a perfectly competitive market and some features of a monopoly. Complete the following table by indicating whether each attribute characterizes a perfectly competitive market, a monopolistically competitive market, both, or neither. Check all that apply.
Which of the following characteristics differentiates a monopolistically competitive industry from a perfectly competitive industry? A-...
Which of the following characteristics differentiates a monopolistically competitive industry from a perfectly competitive industry? A- Full information B- Barriers to entry in the long run C- Barriers to exit in the long run D- Differentiated product
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...
Convenience stores with gas stations tend to sell an essentially identical variety of products and services....
Convenience stores with gas stations tend to sell an essentially identical variety of products and services. Yet this is generally considered to be a monopolistically competitive industry selling differentiated products. How can this be considered a differentiated product?
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...
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...
(1)Product differentiation makes the demand for a monopolistically competitive firm’s product A perfectly elastic. B more...
(1)Product differentiation makes the demand for a monopolistically competitive firm’s product A perfectly elastic. B more elastic than in a competitive market. C perfectly inelastic. D less elastic than that of a monopoly. E less elastic than in a competitive market. 2. Successful advertising under monopolistic competition might A help consumers understand why products in the industry are homogeneous. B reduce the price elasticity of demand for that firm’s output. C create a high barrier to entry. D make the...
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...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be su...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
number 6 6. (12 pts) Gasoline is sold through local gas stations under perfectly competitive conditions....
number 6
6. (12 pts) Gasoline is sold through local gas stations under perfectly competitive conditions. All gas station owners face the same long-run total cost function given by: | LRTC = 0,01g - 29+1014 Where is the number of gallons sold per day. (a) Assuming the market is in long-run equilibrium, how much gas will each firm sell per day? What is the value of long-run average cost at this output level? What is the long run equilibrium price?...
1) The above figure definitely shows a) a long-run equilibrium for a monopolistically competitive firm. b)...
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
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...
16. If firms in a monopolistically competitive market are earning positive profits, then a. firms will likely be subject to regulation. b. barriers to entry will be strengthened. c. some firms will exit the market. d. new firms will enter the market. 17. As new firms enter a monopolistically competitive market, profits of existing firms a. rise, and product diversity in the market decreases. b. decline, and product diversity in the market increases. c. rise, and product diversity in the...
number 6
6. (12 pts) Gasoline is sold through local gas stations under perfectly competitive conditions. All gas station owners face the same long-run total cost function given by: | LRTC = 0,01g - 29+1014 Where is the number of gallons sold per day. (a) Assuming the market is in long-run equilibrium, how much gas will each firm sell per day? What is the value of long-run average cost at this output level? What is the long run equilibrium price?...
1) The above figure definitely shows
a) a long-run equilibrium for a monopolistically competitive
firm.
b) an industry with few firms.
c) a long-run equilibrium for a perfectly competitive firm.
d) a long-run equilibrium for a perfectly competitive market.
2) The firm in the above figure has a markup of ________ per
meal.
a) $0
b) $4
c) $8
d) $10
3) According to the graph bellow:
Q1 to Q2 // Q2 to Q3 // Q4 to Q5
a) The...
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