Question

In: Economics

(Attributes) Competitive Market    Monopolistically Competitive Market ___________________________________________________________________________________________________________________________________________ Price is equal to marginal revenu

(Attributes) Competitive Market    Monopolistically Competitive Market

___________________________________________________________________________________________________________________________________________

Price is equal to marginal revenue

_________________________________________________________________________________________________________________________________________________

Product Differentiation

_____________________________________________________________________________________________________________________________________________

Many Sellers

_____________________________________________________________________________________________________________________________________________________

Free Entry

_________________________________________________________________________________________________________________________________________________

Complete the table by indicating if each attribute characterizes a competitive market, a monopolistically competitive market, both, or neither. Check all that apply.

Please! Respond in a way that is easy to understand and organize it just the way i have shown above.

Solutions

Expert Solution

Price is equal to marginal revenue

Answer: perfectly competitive firm

Explanation : perfectly competitive firm faces horizontal demand curve and they are price taker. So the additional revenue generated by the firm is equals to price as price is same for all the levels of output.

Monopolistically competitive firm faces downward sloping demand curve and marginal curve for monopolistically competitive firm is below the demand curve.

Product Differentiation:

Monopolistically competitive firm

Explanation :

Perfectly competitive market produce identical products.. Monopolistically competitive firms produce identical but differentiate products.

Many Sellers

Monopolistically competitive firm

Perfectly competitive market.

Explanation :

There are many sellers in the both the market. In monopoly it is one firm and in oligopoly there are few firms.

Free Entry

Both

Explanation :

Both the firm has free entry and exit so both the earns zero economic profit.

Rahul Sunny answered 1 month ago
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