which of the following is characteristic of a monopolistically competitive firm? course hero

What are 4 characteristics of monopolistic competition?

What are the 4 conditions of monopolistic competition?

• Product differentiation.
• Many firms.
• Freedom of Entry and Exit.
• Independent decision making.
• Some degree of market power.
• Buyers and sellers do not have perfect information (Imperfect Information)

Which of the following is a characteristic of a competitive market?

The following points highlight the top seven characteristics of a perfectly competitive market. The characteristics are: 1. Large Number of Buyers and Sellers 2. Homogeneous Product 3. Perfect Knowledge about the Market 4. Free Entry and Free Exit 5. Mobility of the Factors 6.

What are the disadvantages of monopolistic competition?

What are the disadvantages of monopolistic competition?

• Higher prices than in competitive markets – Monopolies face inelastic demand and so can increase prices – giving consumers no alternative.
• A decline in consumer surplus.
• Monopolies have fewer incentives to be efficient.
• Possible diseconomies of scale.

Which statement concerning monopolistic competition is false?

Which statement concerning monopolistic competition is false? Long-run equilibrium in monopolistic competition does not entail any economic inefficiency because of easy entry and exit. ... An empty threat is a statement of coercion that is not believed by the threatened firm.

Which of the following is a characteristic of a monopolistically competitive market?

Monopolistically competitive markets have the following characteristics: There are many producers and many consumers in the market, and no business has total control over the market price. Consumers perceive that there are non-price differences among the competitors' products.

What are the characteristics of a monopolistically competitive market quizlet?

Characteristics of Monopolistic Competition:Many sellers.Product Differentiation.Free entry and exit.Long run profits = 0.Firm has market power (not a price taker)Downward sloping demand curve.Many close substitutes.

What are the four characteristics of a monopolistic competitive market?

The four conditions to monopolistic competition are a large number of firms, similar but not perfectly substitutable products, low barriers to entry, and less than perfect information.

What are the characteristics of monopolistic competition give examples of monopolistically competitive firms?

3 Examples of Monopolistic Competition Grocery stores: Grocery stores exist within a monopolistic market as there are a large number of firms that sell many of the same goods but with distinct branding and marketing. Hotels: Hotels offer a prime example of monopolistic competition.

Which of the following is true about a monopolistically competitive firm?

Which of the following is true of a monopolistically competitive firm in long-run equilibrium? It produces where marginal cost equals marginal revenue, the price is equal to average total cost, and the price is greater than marginal cost.

Which of the following is not characteristic of a monopolistically competitive industry?

Monopolistic competition is a market structure where there are large number of sellers selling differentiated products. There is also no barriers to entry. Every body can fix the price as per their choice. Hence, abnormal profits in the long run is not a characteristic of a monopolistically competitive market.

What are characteristics of monopolistic?

A monopolistic market structure has the features of a pure monopoly, where a single company fully controls the market and determines the supply and price of a product or service. Hence, a monopolistic market is a non-competitive market.

Which of the following is an example of a monopolistically competitive market?

The correct answer is (D) fast-food hamburger restaurants.