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 2 months ago
Next > < Previous

Related Solutions

26. Because of easy entry, monopolistically competitive firms will charge a price equal to their marginal...
26. Because of easy entry, monopolistically competitive firms will charge a price equal to their marginal cost earn no economic profit in the short-run earn no economic profit in the long-run produce at the lowest average total cost achieving production efficiency take advantage of all economies of scale available to it 27. Excess capacity typically occurs in the short-run in perfect competition in the long-run equilibrium in monopolistic competition in the short-run in monopolistic competition in the long-run equilibrium in...
For competitive firms, they set marginal cost equal to market price at profit-maximizing level of output....
For competitive firms, they set marginal cost equal to market price at profit-maximizing level of output. In the short run, marginal revenue curve faced by a competitive firm is downward-sloping. Competitive firms always produce a positive amount of output in the short run (q > 0). Competitive firms earn zero economic profit in the long run equilibrium. All these are True False Questions
1- For a perfectly competitive firm, marginal revenue: is less than price. is equal to price....
1- For a perfectly competitive firm, marginal revenue: is less than price. is equal to price. decreases as the firm increases output. is greater than price. 2-Which of the following are characteristics of a monopoly market structure? In a monopoly, there is only one firm in the industry. no close substitutes are available. firm(s) have little to no price-setting power. there are low barriers to entry into the market. 3-You own a small deli that sells sandwiches, salads, and soup....
Costume jewelry is produced in a monopolistically competitive market. A profit-maximizing producer finds that marginal revenue...
Costume jewelry is produced in a monopolistically competitive market. A profit-maximizing producer finds that marginal revenue = marginal cost = $4.50 when output is 700 rings. An economist studying this information can conclude that:     a.the producer is charging a price of $4.50.     b.economic profit is $3,150.     c.the producer charges a price greater than $4.50.     d.new firms will want to enter.     e.this producer should produce more than 700 rings
Monopolistically competitive market with N firms
Consider a monopolistically competitive market with N firms. Each firm's business opportunities are described by the following equations:Demand: Q=100/N-PMarginal Revenue: MR=100/N-2QTotal cost: TC=50+Q(squared)Marginal Cost: MC=2Qa. How does N, the number of firms in the market, affect each firms demand curve? Why.b. How many units does each firm produce? (The answer to this and the next two questions depend on N.)c. What price does each firm charge?d. How much profit does each firm make?e. In the long run, how many firms...
Describe the characteristics of a perfectly competitive market and a monopolistically competitive market? How are they...
Describe the characteristics of a perfectly competitive market and a monopolistically competitive market? How are they similar? How are they different?
The demand curve of a perfectly competitive market is horizontal and equal to marginal revenue curve....
The demand curve of a perfectly competitive market is horizontal and equal to marginal revenue curve. However, the demand curve of a monopoly slopes downward with marginal revenue curve below the demand curve. Discuss the difference in the shape of the demand curve in both markets Discus why the MR curve of the monopoly is below it demand curve while the competitive market is equal to AR Discuss the assertion “Monopolist are price-giver while perfectly competitive market is a price-...
a) State the differences between the monopolistically competitive market and perfectly competitive market. Which market is...
a) State the differences between the monopolistically competitive market and perfectly competitive market. Which market is better for consumers? Explain your answer with 5 examples from Bangladesh. b) State the nature of current market structure in Bangladesh. Discuss the problems and prospects of market structure in Bangladesh with special reference from WASA, PDB, Agricultural products, commercial banks, and Ready-made garments (RMG).
Explain the difference between a monopolistically competitive market and a perfectly competitive market in terms of...
Explain the difference between a monopolistically competitive market and a perfectly competitive market in terms of the immediate consequence of entry by new firms.     
1)TRUE OR FALSE a)For a firm in a competitive market,marginal revenue is always equal to average...
1)TRUE OR FALSE a)For a firm in a competitive market,marginal revenue is always equal to average revenue b)The assumption of free entry and exit is necessary for firms in a competitive market to be price takers c)A profit-maximizing firm in a competitive will increase production when average revenue exceeds marginal cost d)In marketing a short-run profit -maximizing production decision , the firm must consider both fixed and variable cost e)A profit-maximizing firm in a competitive market will earn zero accounting...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT