Compare perfect competition and monopolistic competition. In what ways are they similar? In what ways are they different?
What will be an ideal response?
Because of freedom of entry, economic profits are zero in the long run both for perfect competition and monopolistic competition. But firms in monopolistic competition charge a price greater than marginal cost. This implies that monopolistically competitive industries do not produce the efficient level of output. Also, firms in monopolistic competition do not realize all the economies of scale available. In addition, another difference is that firms in monopolistic competition produce differentiated products. Firms in perfect competition only produce homogenous goods.
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A) $4,236 B) $12,655 C) $6,834 D) $5,985
When the marginal product is increasing as the quantity increases, then as the quantity increases, the
A) average product is decreasing. B) marginal cost is decreasing. C) total cost is decreasing. D) total product is decreasing. E) fixed cost is increasing.
The Glass-Steagall Act of 1933 separated commercial banks from most of their securities business
Indicate whether the statement is true or false
If the duration of unemployment in a country increases from 16 weeks to 18 weeks, then
A. the size of the labor force will increase. B. the unemployment rate will decrease. C. the size of the labor force will decrease. D. the unemployment rate will increase.