long run 39) What does monopolistic competition have in common with -) barriers
ID: 1163360 • Letter: L
Question
long run 39) What does monopolistic competition have in common with -) barriers to exit but no barriers to entry le proft in the A) a large number of fims B) a downward-sloping demand curve C) the ability to collude with respect to price D) mutual interdependence E) barriers to entry 40) An example of a fim in monopolistic competition is A) your local water company B) the sole cable television company C) the many Chinese restaurants in San Francisco D) Kansas Power and Light, the sole provider of electricity in Kansas City E) Shaniq, a wheat farmer. 41) Product differentiation means A) firms sell products that are very dissimilar B) products sold by different firms are slightly different C) charging a higher price to consumers with high willingness to pay D) charging a lower price to consumers with low wilingness to pay E) that a single firm sells many different types of products 42) Which of the foliowing markets is characterized by product diflerentiation? A) cauliflower B) peaches C) plums D) soda E) electricity 43) The four-firm concentration ratio is the percentage of accounted for by the four largest firms in an industry A) profit B) supply C) total revenue D) total cost E) marginal cost 44) If the four-firm concentration ratio for the market for díiapers is 73 percent, then this industry is best characterized as A) a monopoly B) monopolistic competition. C) an oligopoly D) perfect competition. E) either a monopoly or monopolistic competition. 45) The Herfindahl-Hirschman Index is the of the percentage market share of each firm summed over the largest 50 firms in a market A) sum B) square C) square root D) cube E) negative here are r in an industy with market shares of 50 percent, 40 percent,5 percent, and 5 percent, the A) 100 B) 4150 C) 25 3450 undefined because there are not 50 firms in the industry.Explanation / Answer
39) In a monopoly, there is one seller and in monopolistic competition, there are many sellers. Firms can not enter in monopoly but there is less barrier to entry into the monopolistic competition. In both monopoly and monopolistic competition demand is the negatively slope that is downward sloping. So that firms must decrease the price for increasing output. option B is correct.
40) A monopolistic firm should not be the only firm or should not be many firms. Monopolistic firm refers more than one firm but not infinite. The number of local water company must be more than 1 but not many. Option A is correct.
41) Product differentiation is a marketing strategy that sells the similar product with a minor difference. Option B is correct.
42) Cauliflower, peach, plums, electricity all are various goods and services which can not be differentiated. Soda can be made in a different way. Option D is correct.
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