monopolistic competition

In a monopolistically competitive market,

firms can enter or exit the market without restrictions.

not an argument made by critics of advertising

Advertising promotes economies of scale.

Which of the following market structures results in a deadweight loss in the long run?

Monopolistic competition and monopoly

Defenders of advertising

contend that firms use advertising to provide useful information to consumers.

associated with monopolistic competition

cookies

likely to observe the largest amount of advertising

markets with highly differentiated products

Which market structure would likely have the highest concentration ratio?

monopoly

When a market is monopolistically competitive, the typical firm in the market is likely to experience a

positive or negative profit in the short run and a zero profit in the long run.

In monopolistic competition as well as in monopoly,

price exceeds marginal revenue for each firm.

Imperfectly competitive firms are characterized by

price making ability.

example of a monopolistically competitive industry

sweaters