Monopolistic prof lab

large number of firms and low entry barriers

Monopolistic competition is characterized by a:

many firms producing differentiated products.

Monopolistic competition means:

barriers to entry are either weak or nonexistent

Monopolistic competition resembles pure competition because

may realize either profits or losses in the short run, but realize normal profits in the long run

Monopolistically competitive firms:

monopolistically competitive industries are overpopulated with firms whose plants are underutilized.

Monopolistically competitive industries are inefficient because:

advertising, product promotion, and changes in the real or perceived characteristics of a product.

Nonprice competition refers to:

monopolistic competition than in pure competition.

Product variety is likely to be greater in:

pure competition, monopolistic competition, oligopoly, pure monopoly

Properly place continuums of degrees of competition (highest to lowest) Monopolistic competition Pure competition Pure monopoly Oligopoly

8 units

Refer to the above data. If columns (1) and (3) of the demand data shown above are this firm's demand schedule, the profit-maximizing level of output will be:

$9.

Refer to the above data. If columns (1) and (3) of the demand data shown above are this firm's demand schedule, the profit-maximizing price will be:

decline to zero.

Refer to the above data. Suppose that entry into the industry changes this firm's demand schedule from columns (1) and (3) shown above to columns (2) and (3). Economic profit will:

monopolistically competitive.

Refer to the above data. Suppose that entry into this industry changes this firm's demand schedule from columns (1) and (3) shown above to columns (2) and (3). We can conclude that this industry is:

price will equal average total cost

Refer to the above data. With the demand schedule shown above by columns (2) and (3), in long-run equilibrium:

the demand curve would become more elastic.

Refer to the above diagram for a monopolistically competitive firm. If more firms were to enter the industry and product differentiation were to weaken, then:

new firms will enter the industry.

Refer to the above diagram. If all monopolistically competitive firms in the industry have profit circumstances similar to the firm shown above:

is realizing an economic profit

Refer to the above diagram. The monopolistically competitive firm shown:

B

Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by:

A

Refer to the above diagrams, which pertain to monopolistically competitive firms. Long-run equilibrium is shown by:

cannot operate profitably in the short run.

The monopolistically competitive firm shown in the above figure:

highly elastic demand curve.

A monopolistically competitive firm has a:

face demand curves which are less than perfectly elastic.

An important similarity between a monopolistically competitive firm and a pure monopolist is that both:

a few dominant firms and substantial entry barriers.

Oligopolistic industries are characterized by:

$8.

Refer to the above data. If columns (1) and (3) of the demand data shown above are this firm's demand schedule, economic profit will be:

D

Refer to the above diagram for a monopolistically competitive firm. Long-run equilibrium output will be:

A

Refer to the above diagram for a monopolistically competitive firm. Long-run equilibrium price will be:

incur a loss.

Refer to the above diagram for a monopolistically competitive producer. If this firm were to realize productive efficiency, it would:

excess capacity of DE

Refer to the above diagram for a monopolistically competitive producer. This firm is experiencing:

above ATC.

Refer to the above diagram. In short-run equilibrium, the monopolistically competitive firm shown will set its price:

C

Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by:

differentiated oligopoly

The automobile, household appliance, and automobile tire industries are all illustrations of:

more elastic than that of a pure monopolist, but less elastic than that of a pure competitor.

The demand curve of a monopolistically competitive producer is:

consumers have increased product variety.

The economic inefficiencies of monopolistic competition may be offset by the fact that:

some firms will exit the industry

If all monopolistically competitive firms in the industry have profit circumstances similar to the firm shown above:

shift to the right.

If some firms leave a monopolistically competitive industry, the demand curves of the remaining firms will:

price will equal average total cost.

For a monopolistically competitive firm in long-run equilibrium:

is downsloping and lies below the demand curve.

A monopolistically competitive firm's marginal revenue curve:

greater product variety.

A significant benefit of monopolistic competition compared with pure competition is:

former sells similar, although not identical, products.

A significant difference between a monopolistically competitive firm and a purely competitive firm is that the:

amount by which actual production falls short of the minimum ATC output.

Excess capacity refers to the:

the industry would more closely approximate pure competition.

If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes:

products may be standardized or differentiated

In an oligopolistic market:

an underallocation of resources due to excess capacity.

In long-run equilibrium monopolistic competition entails:

below ATC

In short-run equilibrium, the monopolistically competitive firm shown above will set its price:

produces where P = ATC

In the long run a monopolistically competitive firm:

above marginal cost.

In the long-run, a profit-maximizing monopolistically competitive firm sets it price:

have excess production capacity.

In the long-run, economic theory predicts that a monopolistically competitive firm will:

exceed MC, but equal ATC

In the long-run, the price charged by a monopolistically competitive firm seeking to maximize profit will:

will be equal to ATC

In the long-run, the price charged by the monopolistically competitive firm attempting to maximize profits:

above marginal cost.

In the short-run, a profit-maximizing monopolistically competitive firm sets it price:

may be either equal to ATC, less than ATC, or more than ATC.

In the short-run, the price charged by a monopolistically competitive firm attempting to maximize profits: