Exam 11: Monopolistic Competition and Oligopoly

-Sarah and Marisa are the only two baby-sitters available in a small town.Figure 11-14 indicates different combinations of hourly rates charged by the two teenagers,along with their weekly net earnings.If Sarah and Marisa do not collude,then

The influence of technological change on market structure

At the long-run equilibrium output level,a monopolistically competitive firm's average total cost curve

-The profit-maximizing,or loss-minimizing,output for the firm in Figure 11-3 is

Since the demand curve faced by a monopolistically competitive firm is downward sloping,

-Consider the typical monopolistically competitive firm whose demand curve and cost structure is illustrated in Figure 11-5.Which of the following statements is correct in the long run?

A major difference between monopolistic competition and perfect competition is the degree of product differentiation.Pure competition has none and differentiation always exists in monopolistic competition.

-Figure 11-10 shows the long-run market demand curve and the cost structure for a typical monopolistic competitor.The minimum efficient scale (MES)is

-Figure 11-2 illustrates a monopolistically competitive firm.In order to maximize profit,or minimize loss,the firm will

-Figure 11-10 represents the costs of a typical firm along with the market demand curve.In the long run,this industry is most likely going to be a

Which of the following is a distinguishing characteristic of oligopolies?

Monopolistic competition exists when there is one large firm in an otherwise perfectly competitive market.

Consider an industry with 6 firms.Firm A has sales of $6 mil. ,firm B has sales of $12 mil. ,firm C has sales of $30 mil. ,firm D has sales of $50 mil.and firm E has sales of $2 mil.The four firm concentration ration in this industry is

Limits to collusion include

-At the profit-maximizing,or loss-minimizing,output level,the firm in Figure 11-2 has total cost approximately equal to

Tacit collusion among firms involves explicit agreements on pricing and output levels.

All of the following,except one,would serve to increase competition in an oligopoly.Which is the exception?

An oligopoly is a market

In the long run,entry ensures that the typical monopolistically competitive firm will

A market in which a small number of strategically interdependent firms produce the dominant share of output is called