. charge a price that is consistent with that ol a volent socia ompetition is ch
ID: 1114748 • Letter: #
Question
. charge a price that is consistent with that ol a volent socia ompetition is characterized by which of the following attibutes? (i) Free entry; (ii) Product differentiation; (ii) Many sellers a. (i) and (ii) only. c.(i) and (ii) only. d. (0:(ay, and (ii) 28. When an industry has many firms, the industry is a. an oligopoly if the firms sell differentiated products, but it is monopolisticeally competitive if the firms sell identical products. b. an oligopoly if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products. c. perfectly competitive if the firms sell differentiated products, but it is monopolistically competitive if the firms sell identical products. d. monopolistically competitive if the firms sell differentiated products, but it is perfectly competitive if the firms sell identical products. 29. Monopolistic competition differs from perfect competition because in monopolistically competitive markets each of the sellers offers a somewhat different product. Moreover, a profit-maximizing firm in a monopolistically competitive market differs from a f in a perfectly competitive market because the firm in the monopolistically competitive market a. make zero profit in long run. b. faces a horizontal demand curve at the market clearing price. c. is characterized by setting the price at P ATC. d. has no barriers to entry. Figure#3:Explanation / Answer
27) The answer is C-) ii and iii only.
because in monopolistic comeptition , there is low barrier on entry and exit of the firm thus there is no free entry in monopolistic competition and there is a product differentiation and many number of sellers.
28) THe asnwer is D -) monopolistically competitive if the firm sell differentiated products, but it is perfectly competitive firm if they sell identical products.
because, in both industry, there are large number of seller, only the differnece is product differentiation.
29) tHe asnwer is C - ) is characterized by setting the P=ATC.
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