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

According to a Wall Street Journal article,hhgregg has differentiated itself from its competition,particularly from large chain stores such as Best Buy,

A monopolistically competitive firm faces a downward-sloping demand curve because

Table 13-1 -Refer to Table 13-1.What portion of the marginal revenue of the 5th unit is due to the output effect and what portion is due to the price effect?

One of your classmates asserts that advertising,marketing research,and brand management are redundant expenditures because a firm can obtain the same information by simply looking at what customers are already buying.Which of the following is not a response you might offer her?

A monopolistically competitive industry that earns economic profits in the short run will

Figure 13-11 -Refer to Figure 13-11.Which of the following statements is true?

Firms such as Caribou Coffee and Diedrich Coffee operate hundreds of coffeehouses nationwide while firms such as Dunn Brothers Coffee operate only in four states.How would you characterize these stores?

Assume price exceeds average variable cost over the relevant range of demand.If a monopolistically competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19,then to maximize profits the firm should

Unlike a perfectly competitive firm,for a monopolistically competitive firm

A monopolistically competitive industry that earns economic profits in the short run will face a more elastic demand curve in the long run.

Figure 13-10 -Refer to Figure 13-10.What is the allocatively efficient output for the firm represented in the diagram?

A monopolistically competitive firm can convince buyers that its product has value by differentiating its product to suit consumers' preferences.

Nike has used Michael Jordan to create the impression that Air Jordan basketball shoes are superior to any other basketball shoes.Nike is attempting to

Consumers benefit from monopolistic competition by

Which of the following characteristics is not common to monopolistic competition and perfect competition?

Table 13-1 -Refer to Table 13-1.What is the marginal revenue of the 3rd unit?

When a monopolistically competitive firm cuts its price to increase its sales,it experiences a loss in revenue due to the

Assuming that the total market size remains constant,a monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing in the long run because

Figure 13-10 -Refer to Figure 13-10.What is the productively efficient output for the firm represented in the diagram?

Figure 13-3 Figure 13-3 shows short-run cost and demand curves for a monopolistically competitive firm in the market for designer watches. -Refer to Figure 13-3.If the firm represented in the diagram is currently producing and selling Q_a units,what is the price charged?