oh similar sellers in the 1 geun This is an example of Seler A creases the price
ID: 1121792 • Letter: O
Question
oh similar sellers in the 1 geun This is an example of Seler A creases the price of its good by 20% and stil enjoys a high market demand Due to the high demand, there is an increase in the number Which of the following is not a common characteristic between a monopoly and monopolistic competition? O A. The price set by the sellerlproducer will be above marginal revenue. O B. There is deadweight loss in the market ° C. The products sold have dose substitutes O D. The slope of the demand curve is negative. a monopoly monopolistic competition perfect compelition an oligopoly 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 shits in the market supply curve for Good A. Which market structure does Good A belong to? O A. The oligopolistic market with difer entiated products O B. The perfectly competitive market O C. The oligopolistic market with homogenous products O D. The monopolistic competitive market Click to select your answerExplanation / Answer
Ans:
1) monopolistic competition
Monopolistic competition is a market structure in which firms enjoy low degree of market power,sell similar products and barriers to entry and exist are low. In the short run firms enjoy positive economic profits. These economic profits increases the number of similar sellers in the long run.
2) Option C
The products sold have close substitutes
In monopolistic competition firms sell products which are similar, but not perfect substitutes. A monopoly sells a unique product with no close substitutes.
3) Option B
The perfectly competitive market.
In a perfectly competitive market firms earn zero economic profits in the long run and entry of new firms increases the supply which will shift the supply curve to the right and this decreases the price.
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