Using graphical analysis ( no numbers) illustrate monopolistic competition for a positive economic profits, economic losses...

Using graphical analysis ( no numbers) illustrate monopolistic competition for a positive economic profits, economic losses and the long run. Show why this is not efficient both in terms of production and allocation.

Expert Solution

Rahul Sunny answered 2 years ago

Question 1 How are perfect competition and monopolistic competition different? Economic profit is not positive for...

Question 1 How are perfect competition and monopolistic competition different? Economic profit is not positive for perfect competitors, but it is for monopolistic competitive firms. The resources in a society are under-allocated to production within a perfectly competitive industry. Items sold within monopolistic competition have more variation in their characteristics. Economic profit is more than zero for perfectly competitive firm, but is zero for monopolistic competitors. Question 2 ________ is firms’ ability to make the same pricing decisions without consulting...

What factors prevent firms in monopolistic competition to earn economic profits in the long run? Discuss...

What factors prevent firms in monopolistic competition to earn economic profits in the long run? Discuss the adjustment process and factors such as customer or brand loyalty that might slow the adjustment process?

Using graphical analysis in explaining your answer, describe a model to illustrate how the integration of...

Using graphical analysis in explaining your answer, describe a model to illustrate how the integration of production factor markets leads to a better allocation of capital and labor

Illustrate the demand curves for a perfect competition, monopolistic competition, oligopoly, and monopoly market structures.

Describe and illustrate the difference between perfect competition and monopolistic competition in the long run. Comment...

Describe and illustrate the difference between perfect competition and monopolistic competition in the long run. Comment on long run profit, price sensitivities that firms are responding to as well as welfare and efficiency outcomes in both cases.

Both monopolistic competition and perfectly competition are market structures where firms earn normal profits in the...

Both monopolistic competition and perfectly competition are market structures where firms earn normal profits in the long run, but with a difference. a. Using a single diagram, show the equilibrium price,output and average costs for both markets in the long run. b. Which is the common feature of both markets that makes the sellers earn only normal profits in the long run?

Recognize the key characteristics of monopolistic competition Describe the economic efficiency and other characteristics of monopolistic...

Recognize the key characteristics of monopolistic competition Describe the economic efficiency and other characteristics of monopolistic competition in the long run Explain the economic role of advertising Define price discrimination Compare and contrast perfect and imperfect price discrimination Identify an oligopoly as a market structure where firms are highly interdependent Describe collusion and strategic pricing decisions Describe game theory and why it is applied to oligopoly

Explain the role of brands in a monopolistic competition market. How can the pricing and profits...

Explain the role of brands in a monopolistic competition market. How can the pricing and profits for a firm in this market structure differ from perfect competition and when will the two market types reach the same outcome? Why does that make it essential for firms to have a strong brand identity? Give an example of a product with this type of market structure and discuss (briefly) how the firms have established their brands.

Which is more common in the modern economic world and why: perfect competition of monopolistic competition?...

Which is more common in the modern economic world and why: perfect competition of monopolistic competition? Do students benefit from a perfectly competitive markets?

Describe the economic concepts of perfect competition, imperfect markets and profits

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