Which of the following is an example of a monopolistically competitive industry? a. computer operating systems b. tennis balls c. restaurants in New York City d. cable television ANS: C 43. Examples of monopolistically competitive markets include the markets for a. restaurants and furniture. b. wheat and corn. c. postage stamps and wooden pencils.
View full document. 15. Which of the following is an example of a monopolistically competitive industry? A. wheat farming B. colleges and universities C. the local electricity producer D. the domestic automobile producing industry. Answer Key 1. Perfect competition is often called an “ideal” market structure because the conditions necessary ...
Examples of monopolistically competitive markets include the markets for a. restaurants and furniture. b. wheat and corn. c. postage stamps and wooden pencils. d. All of the above are correct. ANS: A DIF: 1 REF: 16-1 NAT: Analytic LOC: Monopolistic competition TOP: Monopolistic competition MSC: Applicative 44.
Feb 07, 2011 · LOC: Monopolistic competition TOP: Monopolistic competition MSC: Applicative 43. Examples of monopolistically competitive markets include the markets for a. restaurants and furniture. b. wheat and corn. c. postage stamps and wooden pencils. d. All of the above are correct. ANS: A DIF: 1 REF: 16-1 NAT: Analytic
The correct answer is (D) fast-food hamburger restaurants.
An example of a monopolistic competitive industry is: sodas. Monopolistically competitive firms earn zero profits on average because: positive profits cause competitors to enter the market, decreasing demand for each individual firm.
Monopolistic competition is a type of imperfect competition such that there are many producers competing against each other, but selling products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.
5 characteristics of monopolistic competitionSlightly different products and services. ... Free entry and exit from the market. ... Many companies. ... Imperfect consumer knowledge. ... Profits. ... Products and pricing. ... Barriers to entry and exit. ... Number of companies.More items...•Sep 30, 2021
Hair salons, restaurants, clothing, and consumer electronics are all examples of industries with monopolistic competition. Each company offers products that are similar to others in the same industry. However, they can distinguish themselves through marketing and branding.
Monopolistic competition is a market structure where a large number of firms produce similar, though not interchangeable, products. In economics, this type of competitive market falls between monopoly and perfect competition. A monopoly occurs when one firm holds all of the market power and sets the market price.Feb 25, 2022
Monopolistic competitive markets have highly differentiated products; have many firms providing the good or service; firms can freely enter and exits in the long-run; firms can make decisions independently; there is some degree of market power; and buyers and sellers have imperfect information.
Grocery stores, gas stations, restaurants are all examples of firms in markets which approximate monopolistic competition.
Restaurants are a monopolistically competitive sector; in most areas there are many firms, each is different, and entry and exit are very easy. Each restaurant has many close substitutes—these may include other restaurants, fast-food outlets, and the deli and frozen-food sections at local supermarkets.
The following are the characteristics of a monopolistic market:Single supplier. A monopolistic market is regulated by a single supplier. ... Barriers to entry and exit. ... Profit maximizer. ... Unique product. ... Price discrimination.
Which of the following most characterizes monopolistic competition? Product differentiation. Features that make one product appear different from competing products in the same market.
Monopolistic competition is different from monopoly because monopolistic competition is characterized by free entry, whereas monopoly is characterized by barriers to entry. b. Both monopolistic competition and oligopoly fall in between the more extreme market structures of competition and monopoly.
One key difference between an oligopoly market and a competitive market is that oligopolistic firms. a. are price takers while competitive firms are not. b. can affect the profit of other firms in the market by the choices they make while firms in competitive markets do not affect each other by the choices they make.
Two soft drinks sit side-by-side in a grocery store: A six-pack of Coca-Cola (a brand name) sells for $3.00, while a six-pack of Uncle Don's cola (not a brand name) sells for $1.50. In a typical day the store sells some of each type of cola, which suggests that.
John claims that Josh is irrational because he never purchased Dunkin' Donuts' coffee at home, and Dunkin' Donuts' coffee costs more than the coffee sold by local shops. An economist would most likely explain Josh's behavior by suggesting that. a. Josh's behavior is rational, but John's behavior is clearly irrational.
Two college students, Josh and John, are spending spring break in Boston to visit Harvard University's law school. Josh buys a cup of coffee each morning at the local Dunkin' Donuts rather than from one of the local coffee shops. John claims that Josh is irrational because he never purchased Dunkin' Donuts' coffee at home, ...
However, in a blind taste test, Eunice is found to prefer generic store-brand cola to Coke eight out of ten times. The results of Eunice's taste test would reinforce claims by critics of brand names that. a. consumers are always willing to pay more for brand names.
monopolist. In a monopolistically competitive industry, firms set price. above marginal cost since each firm is a price setter. A profit-maximizing firm in a monopolistically competitive market differs from a firm in a perfectly competitive market because the firm in the monopolistically competitive market.
A firm in a monopolistically competitive market faces a. downward-sloping demand curve because the firm's product is different from those offered by other firms. In the shop run, a firm in a monopolistically competitive market operate much like a. monopolist. In a monopolistically competitive industry, firms set price.
The primary claim of defenders of advertising is that it. enhances the information available to consumers. Critics of markets that are characterized by firms that sell brand name products argue that brand names encourage consumers to pay more for branded products that. are indistinguishable from generic products.
Positive economic profits for firms in the long run. If firms in a monopolistically competitive market are earning positive profits, then. new firms will enter the market. In monopolistically competitive markets, economic losses. suggest that some existing firms will exit the market.