In what way is monopolistic competition more like competition, and in what way is it more like monopoly?
What will be an ideal response?
Like competition, there are many firms in a monopolistically competitive industry, no barriers to entry or exit, and perfect information. Like monopoly, the firm faces a downward-sloping demand curve due to product heterogeneity. One might add that profits are zero in the long run, like competition, but price is above minimum average cost, more like monopoly.
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The decisions of today have consequences that lie in the future
Indicate whether the statement is true or false
According to the survivor principle
A) firms will get taken over by their larger rivals over time. B) only firms that maximize profits survive in highly competitive markets. C) managers only work hard if they are threatened with their survival at the firm. D) eventually all firms merge to become one large monopoly.
A study that deals with the salaries of university professors would be considered:
A. economic naturalism B. real economics C. microeconomics D. macroeconomics
(Scenario: Growth Rates) Look at the scenario Growth Rates. According to the rule of 70, how large will China's real GDP per capita be in 20 years?
What will be an ideal response?