Exam 10: Monopolistic Competition: The Competitive Model in a More Realistic

Figure 10.9 -Refer to Figure 10.9.The graph in the figure that depicts a monopolistically competitive firm that is minimising its losses is

Economists believe that consumers would be better off if markets were perfectly competitive rather than monopolistically competitive.

Discuss the role of product differentiation and advertising in monopolistic competition. __________________________________________________________________________________________________________________________________________________________________________________________

Figure 10.14 -Refer to Figure 10.14.The area that represents the firm's profit is

If some monopolistically competitive firms exit their market after suffering short-run losses, the demand curves of remaining firms will shift to the right.

What do the entry and exit of firms in monopolistically competitive market guarantee

Which of the following statements is true?

Which of the following is true of trademarks?

Which is true of a firm faces a downward-sloping demand curve?

Figure 10.7 Figure 10.7 shows short-run cost and demand curves for a monopolistically competitive firm in the footwear market. -Refer to Figure 10.7.Which of the following statements describes the best course of action for the firm depicted in the diagram?

Sparkle, one of many firms in the market for toothpaste, is in long-run equilibrium.Sparkle has a small market share and has been in business for a long time. a.Identify the market structure in which Sparkle operates.Explain your answer. b.What is Sparkle's profit or loss? Explain your answer.If you cannot determine the profit or loss, explain what information is missing. c.Draw a diagram showing Sparkle's demand curve, marginal revenue curve, average total cost curve and marginal cost curve.Label your diagram. __________________________________________________________________________________________________________________________________________________________________________________________

The characteristic below that is not common to monopolistic competition and perfect competition is

Figure 10.17 -Refer to Figure 10.17.The amount of excess capacity is

If the demand curve for a firm is downward sloping, its marginal revenue curve

Figure 10.12 -Refer to Figure 10.12.The monopolistic competitor's profit-maximising output is

If a monopolistically competitive firm breaks even, the firm

Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes.

Table 10.3 Table 10.3 shows the demand and cost schedules for a monopolistically competitive firm. -Refer to Table 10.3.The amount of the firm's loss at its optimal output level is

Which of the following is a disadvantage of trademarking a firm's product?

Despite being in a market with ________, from the mid-1990s to the mid-2000s Starbucks was able to significantly differentiate its products from the products of its competitors.