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ar se ersin the long-run. This is an example of Seller A increases the price of

ID: 1121790 • Letter: A

Question

ar se ersin the long-run. This is an example of Seller A increases the price of ts good by 20% and still en o s a high market demand. Due to the high demand. there is an increase in the number of si Which of the following is not a common characteristic between a monopoly and monopolistic competition? O A. The price set by the seller/producer will be above marginal revenue. O B. There is deadweight loss in the market C. The products sold have close substitutes. 0 D. The slope of the demand curve is negative Suppose Good A belongs to a market where the firms earn zero economic profits in the long-run and entry of new firms will result in price changes that operate through shifts in the market supply curve for Good A Which market structure does Good A belong to? O A. The oligopolistic market with differentiated products. O B. The perfectly competitive market. O C. The oligopolistic market with homogenous products 0 D. The monopolistic competitive market.

Explanation / Answer

Answer
Q1
monopolistic competitive market
because the firm can control price and free entry is the feature of a monopolistic competitive market
Q2
option c
The monopolistic competitive market have close substitutes and monopoly do not have
Q3
Option B
The increase in number of firms shifts supply curve to right which happen in perfect competition and in monopolistic competition the demand curve for individual firms decreases