Marginal revenue curve under monopolistic competition

Assignment Help Business Economics

Reference no: EM131112370

The shape and/or slope of the marginal revenue curve under monopolistic competition, assuming a linear market demand, is:

A) horizontal B) vertical C) U-shaped D) upward-sloping E) downward-sloping and twice as steep as the market demand curve

Similarly, monopolistic competition is like monopoly in that:

A) neither industry has high barriers to entry B) both industries represent price-taking firms C) price changes are dictated by changes in supply D) both industries have high barriers to entry E) both industries represent price-making firms.

Reference no: EM131112370

Questions Cloud

Monopolistic competition means : Monopolistic competition means: Similarily, the movie You’ve Got Mail features a successful small bookstore competing with a new book superstore around the block. The big superstore offers large discounts, while the small independent bookstore has be..

Discuss the benefits and costs to society from such policy : The pharmaceutical industry has been subject to considerable regulation in bringing drugs to the marketplace. Discuss the benefits and costs to society from such a policy?

Profit maximizing monopolistically competitive firm : The short-run equilibrium for a profit maximizing monopolistically competitive firm is at price = $29, average total cost = $22. The firm's marginal cost is $18. Which of the following is true? Similarily, a neighborhood convenience store is generall..

Economic fluctuations or business cycles : A production possibilities frontier can shift outward for all of the following reasons except. The increased labor force participation of married women in the United States is most often explained by: A movement along a demand curve can be attributed..

Marginal revenue curve under monopolistic competition : The shape and/or slope of the marginal revenue curve under monopolistic competition, assuming a linear market demand, is: Similarly, monopolistic competition is like monopoly in that:

Get the maximum benefit from the expansionary policy : In a long run aggregate supply and demand context where the economy starts with an output gap of $500 billion, the reserve ratio is .1, and the Federal reserve buys $50 billion in bonds, show the effect of this monetary policy. Assume banks loan out ..

Consider profit-maximizing monopoly pricing : Consider a profit-maximizing monopoly pricing under the following conditions. The profit-maximizing quantity is 40 units, the profit-maximizing price is $160, and the marginal cost of the 40th unit is $120.

Two methods of carrying away surface runoff water : Two methods of carrying away surface runoff water from a new subdivision are being evaluated. Method 1 – dig a ditch. This would cost $60,000 and would require $25,000 of re-digging and shaping every 5 years after. Method 2 – Lay concrete pipe.

User Account

All Pages