In what way is monopolistic competition more like competition, and in what way is it more like monopoly?
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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Under a transferable emissions permit system with n possible polluters, the government enforces the total amount of emissions allowable at X units by
A) setting a different fee for each firm so that each firm chooses to emit X/n units. B) setting the same fee for each firm so that each is forced to emit X/n units. C) setting a different standard for each firm, with X/n being the average. D) setting the same standard for each firm at X/n. E) issuing X permits.
Individuals behave so as to maximize their utility
a. True b. False Indicate whether the statement is true or false
If all consumers had identical preferences, then their marginal utility schedules would be the same
a. True b. False Indicate whether the statement is true or false
If price and total revenue vary in opposite directions, demand is:
A. perfectly inelastic. B. perfectly elastic. C. relatively inelastic. D. relatively elastic.