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 college 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?

What is the difference between the terms "marketing" and "advertising"?

Which of the following characteristics is common to monopolistic competition and perfect competition?

Which of the following is not an example of a monopolistically competitive market?

JoJo's Cigar Bar is attempting to set itself apart from its competition by marketing to single women.This is an example of

Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?

Juicy Couture has been successful in selling women's clothing using an unusual strategy. According to an article in the Wall Street Journal,the key to the firm's strategy is to "limit distribution to maintain the brand's exclusive cachet,even if that means sacrificing sales,a brand-management technique once used only for high-end luxury brands." In 2006,Juicy clothes were sold in only four department stores: Neiman Marcus,Saks,Bloomingdale's,and Nordstrom.In 2006,its sales have more than quadrupled since 2002. Source: Rachel Dodes,"From Track Suits to Fast Track," Wall Street Journal,September 13,2006. How does limiting the number of stores in which Juicy's products are sold contribute to its success?

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

What are the most important differences between perfectly competitive markets and monopolistically competitive markets?

Which of the following statements is true about marginal revenue?

In the long-run equilibrium,a monopolistically competitive firm earning normal profit produces the allocatively efficient output level.

When a credit card company offers different services with its card,like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card,the credit card company is trying to

If a typical monopolistically competitive firm is making short-run losses,then

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

Table 13-2 Eco Energy is a monopolistically competitive producer of a sports beverage called Power On. Table 13-2 shows the firm's demand and cost schedules. -Refer to Table 13-2.What is the output (Q)that maximizes profit and what is the price (P)charged?

Table 13-3 Table 13-3 shows the demand and cost schedules for a monopolistically competitive firm. -Refer to Table 13-3.If this firm continues to produce,what is likely to happen to the product's price in the long run?

Figure 13-4 -Refer to Figure 13-4.The candy store represented in the diagram is currently selling Q_a units of candy at a price of P_a.Is this candy store maximizing its profit and if it is not,what would you recommend to the firm?