econ 201 - ch.13

perfectly comp vs. monopolistically comp

-perfectly: horizontal demand curve -monopolistically: downward sloping demand curve

monopolistically competitive market cannot achieve productivity nor allocative efficiency. true or false?

True

monopolistic competition

a market structure in which barrier to entry are low and many firms compete by selling similar, but not identical, products

marketing

all the activities necessary for a firm to sell a product to a consumer

marginal revenue (equation) ?

change in total revenue/ change in quantity

trademark

grants legal protection against other firms using it's products name

brand management

the actions of a firm intended to maintain the differentiation of a product over time

in a perfectly competitive market it can achieve both productivity and allocative efficiency. true or false ?

true

what is the difference between zero accounting profit and zero economic profit?

zero accounting profit take opportunity costs into account, while zero economic profit does not. if a firm has zero accounting profits, it will be making an economic loss. if a firm has zero economic profits, they have will positive accounting profits.