Q8. Which of the following statements accurately describes a monopolistically competitive firm? A) Its market is...

Q8. Which of the following statements accurately describes a monopolistically competitive firm?

A) Its market is dominated by a small number of firms.

B) It competes against a large number of firms selling slightly different products.

C) It will try to blend in its product so it is indistinguishable from other firms’ products.

Q9. Monopolistic competitors in the food industry, acting in their own self-interest, will often include a recyclable symbol on packaging used for their product as a means to

A) be socially responsible.

B) differentiate their product.

C) be environmentally responsible.

Q10. Which of these choices is an example of a differentiated product produced by a monopolistic competitor?

A) plain T-shirt

B) iPhone mobile phone

C) lemons in a grocery store

Q16. A firm that can cover its ________ will break even.

A) total cost

B) average cost

C) variable costs

Solutions

Expert Solution

8. Option B

A monopolistically competitive firm is a market structure in which there are large number of firms selling differentiated products.
These firms compete against other firms by employing some strategies or ways to differentiate their products.

9. Option B

The recyclable symbols included on the packaging used for their products acts as a means of product differentiation employed by most of the firms in the monopolistically competitive markets.
This allows firms to compete with other firms by differentiating their products.

10. Option C

The lemons in a grocery store is an Example of a differentiated product produced by a monopolistic competition.
Retail stores or grocery stores are considered as best examples of monopolistic competition.

16. Option A

A firm that can cover its total cost will break even.
When the firm's total cost equals total revenue, then it is said to break even.
At this point the firm has nothing to gain or lose and hence does not face profits nor loss.

Rahul Sunny answered 10 months ago

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