Exam 13: Monopolistic Competition: the Competitive Model in a More Realistic Setting

Suppose Jason owns a small pastry shop.Jason wants to maximize his profit, and thinking back to the microeconomics class he took in college, he decides he needs to produce a quantity of pastries which will minimize his average total cost.Will Jason's strategy necessarily maximize profits for his pastry shop?

Being the first to sell a particular good can give a firm advantages over other firms that sell similar products.What is the name given to these advantages?

Only one of the following statements is correct.The statements compare perfectly competitive (PC)markets and monopolistically competitive (MC)markets.Which statement is correct?

In theory, in the long run, monopolistically competitive firms earns zero profits.However, in reality there are some ways by which a firm can avoid losing profits.Which of the following is one such way?

Which of the following is true for a firm with a downward-sloping demand curve for its product?

Complete the following table.

Monopolistic competition is a market structure in which

The key characteristics of a monopolistically competitive market structure include

If a monopolistically competitive firm has excess capacity

Which of the following statements is true about marginal revenue?

Monopolistically competitive firms can differentiate their products

All of the following characteristics are common to both monopolistic competition and perfect competition except

Does the fact that monopolistically competitive firms do not achieve productive efficiency or allocative efficiency mean that there is a significant loss in consumer welfare?

Figure 13-11 -Refer to Figure 13-11.What is the monopolistic competitor's profit maximizing output?

When a firm has been granted a trademark, which grants legal protection against other firms using the name of the product that has been granted the trademark, the firm

How would a marketing campaign directed at single women improve the chances of success at a place like a cigar bar?

Figure 13-4 Figure 13-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 13-4.What is the area that represents the loss made by the firm?

New firms are able to enter monopolistically competitive markets because there are low barriers to entry.

Figure 13-4 Figure 13-4 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 13-4.What is the area that represents the total variable cost of production?

Which of the following is not a characteristic of monopolistic competition?