The statements below are about monopolistic competition. Indicate whether each s

Question

The statements below are about monopolistic competition. Indicate whether each statement is true or false by moving the true or false labels to the appropriate boxes. monopolistic ally competitive firm may be able to distinguish its product trim other firms by adjusting its style, level of quality, or location offerings. Product differentiation enables a monopolistic ally competitive firm to have some control over the price of its product. In the long run each monopolistic ally competitive firm produces a level of output that results in allocates efficiency. In the long run each monopolistic ally competitive firm produces a level of output that results in productive efficiency. To maintain a competitive edge and earn economic profits, a monopolistic ally competitive firm has an incentive to improve its product. Compared with perfectly competitive markets, under monopolistic competition consumers with diverse tastes benefit from the opportunity to choose from a greater range of products and services. In order to maximize its profits, each monopolistic ally competitive firm must determine the price of its product, how to differentiate its product, and how much it will spend on advertising.

Explanation / Answer

1. A monopolistically competitive firm may be able to distinguish itself from other firms by adjusting the physical attributes of its product, by offering a distinctive level of service, or by selecting a convenient location.- True

2.Product differentiation enables a monopolistically competitive firm to have some control over the price of its product- True

3.In the long run each monopolistically competitive firm produces a level of output that results in allocative efficiency.- False

4. In the long run each monopolistically competitive firm produces a level of output that results in productive efficiency- False

5.To maintain a competitive edge and earn economic profits, a monopolistically competitive firm has an incentive to improve its product. -True

6. Compared with purely competitive markets, under monoplistic competition consumers with a diversity of tastes can benefit from the opportunity to choose from a greater range of products and services. -True

7.In order to maximize its profits, each monopolistically competitive firm must determine the price of its product, how to differentiate its product, and how much it will spend on advertising.True

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.