Reference no: EM131393486
1. Which of the following is not true about monopolistic competition, compared to monopoly?
All listed options are true.
Firms under both market structures face downward-sloping demand curves.
Monopolistic competition has more sellers.
Firms under both market structures have significant market power.
Both market structures have significant barriers to entry.
2. In the short run, in some industry, the monopolistic competitor earns positive economic profits. In the long run,
new firms will enter, but economic profits will remain positive for the firm described
new firms will enter until P = ATC
new firms cannot enter due to barriers to entry
some firms will leave, and economic profits will be zero
Using the baumol-tobin transactions model
: Using the Baumol-Tobin Transactions Model, answer the following. Assume the following. The interest rate is 10%. The ATM fee (transaction cost) for withdrawing money is $2. My monthly income is $1,000. I make equal-sized cash withdrawals for each tri..
|
Profit maximizing quantity and price in an oligopoly
: Explain the effects of rent control in the stock-flow model of the housing market. Can we determine the profit maximizing quantity and price in an oligopoly? What is the current economic issue about China? What are the important factors of economic g..
|
Monopolistic competitor generally behaves
: The more elastic the demand, the higher the profit-maximizing markup. In the short run, a monopolistic competitor generally behaves like ____________; in the long run, the market structure becomes _________ competitive due to free entry and exit.
|
Responsible for recommending contracts to the city council
: You are responsible for recommending contracts to the city council. Your immediate supervisor has asked you to prepare a recommendation for a large contract for an individual you know is a good friend of your supervisor. What might you do if your sup..
|
About monopolistic competition-compared to monopoly
: Which of the following is not true about monopolistic competition, compared to monopoly? In the short run, in some industry, the monopolistic competitor earns positive economic profits. In the long run,
|
Why society has chosen the mixed economy
: Why society has chosen the Mixed Economy. Gives two goals desired by society that the pure market economy is largely successful in reaching and explain why the market is able to attain these goals.
|
Will the structure of the market change
: Suppose that a firm is in an industry which has a very rapid rate of growth (in sales and output), and is characterized by technological change and innovation. Firms attempt to maximize profits causing new firms to enter the industry attracted by pro..
|
Contemplating future career alternatives based
: Your cousin brother Bobby has turned 18 and is contemplating future career alternatives based on the probable salaries to be earned. He seeks your advice. Invest two years and $6,000 per year at Community College education. Work remaining years until..
|
Principles of economics is law of comparative advantage
: Due to the global economic slowdown, we were benefiting from relatively low oil prices. But because of the instability of the Middle East and the slowing of the global economy we are seeing oil prices fall. One of the key principles of economics is t..
|