Module 10 -

Advertising

For monopolistically competitive firms, _______ their products are important because many consumers do not like taking risks, and this way they can learn about products before buying them.

monopolistic

In a __________ competitive market, consumers can usually find exactly what they are looking for based on their preferences and budgets

elastic

In a monopolistically competitive market, the closer the substitutes are to each other, the more ______ each firm's demand curve will be

antitrust laws

Laws designed to prevent firms from engaging in behaviors that would lessen a competitions in a market are called

not the sme market structure

Monopolistic competition and a monopoly arre:

MONOPOLITISCALLY , demand

Because _______ competitive firms have some control over prices, the firm will charge consumer the price they are willing and able to pay for the available output, which is found by projecting the profit-maximizing output level on the ________ curve.

easy

Monopolistic competition and perfect competition have have one main characteristic in common: relatively ________ market entry and exit

a relatively large number of sellers producing a differentiated product, for which they have some control over the price they charge, in a market with relatively easy market entry and exit.

Monopolistic competitive is a market characterized by

Presence of other monopolistically competitive firms in the industry.

Monopolistically competitive firms are unable to produce enough output to reach the minimum average total cost because of the:

productively

Monopolistically competitive firms produce less output then would be ______ efficient

combine characteristics of competitive markets and pure monopolies

Monopolistically competitive market:

deadweight loss

The difference between the economic surplus when the market is at its competitive equilibrium and the economic surplus when the market is not in equilibrium is the

normal

The long run equilibrium in a monopolistically competitive market results in firms realizing ______ profits, which removes all incentives for firms to enter or exit the industry.

monopolisrically, more, higher

Through advertising and branding, ------ competitive firms increase the demand for their products and make those demands relatively -----Iinelastic allowing them to charge -----price and generate more economic profits

output is produced at the lowest possible total cost per unit of production; output is produced using the fewest resources possible to produce a good or a service

When there is productive efficiency:

large numbers of buyers and sellers standardized product easy entry and exit producers who are price takers

Which of the following are the four characteristics if a perfectly competitive market?

allocative

________ efficiency is producing the goods and services that consumers most want in such a way that marginal benefits equals marginal costs

variety

a clear benefit to monopolistic competition for consumers is product

True

profit maximization implies that monopolistically competitive firms should expand products up to the point where the marginal revenue equals the marginal cost

economic

the total revenue minus the implicit and explicit costs of production is _____ profit

- price - quantity of output - average total cost

to calculate profit you need...