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

In the long run,what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?

Which of the following statements is true about advertising by a monopolistically competitive firm?

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

Quantity Sold Price Total Revenue Marginal Revenue Total Cost Marginal Cost Profit 0 \ 10 \ 0 ---- \ 2 ---- -\ 2 1 9 9 8 2 8 16 13 3 7 21 17 4 6 24 20 5 5 25 22 6 4 24 26 Table 13-4 lists estimated revenues and costs (per week)for plastic vials (100 vials per box)for the Victoria Biological Supplies Company.Victoria sells plastic vials to university and private research laboratories. -Refer to Table 13-4.Victoria's profit-maximizing quantity sold (Q)and price (P)are

Table 13-1 Quantity Price (dollars) Total Revenue (dollars) 1 \ 7.50 \ 7.50 2 7.00 14.00 3 6.50 19.50 4 6.00 24.00 5 5.50 27.50 6 5.00 30.00 -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?

Advertising is the action of a firm that is intended to maintain the differentiation of its product over time.

Why are demand and marginal revenue represented by the same curve for a firm in a perfectly competitive market,but by separate curves for a firm in a monopolistically competitive market?

If a firm faces a downward-sloping demand curve

One goal a firm tries to achieve when it advertises a product is to

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

In San Francisco there are many restaurants that specialize in a wide variety of cuisines.Patronage at these restaurants is influenced by factors such as tastes,price,and location.This market is

Which of the following is an example of a factor that a firm's owners and managers can control in making the firm successful?

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

The ability to engage in product differentiation is one of the factors a manager or owner of a firm can control in order to create value for consumers.

If a monopolistically competitive firm has excess capacity

Which of the following is true of trademarks?

Why are many companies concerned about brand management?

Table 13-1 Quantity Price (dollars) Total Revenue (dollars) 1 \ 7.50 \ 7.50 2 7.00 14.00 3 6.50 19.50 4 6.00 24.00 5 5.50 27.50 6 5.00 30.00 -Refer to Table 13-1.What portion of the marginal revenue of the 4th unit is due to the output effect and what portion is due to the price effect?

Figure 13-17 -Refer to Figure 13-17.What is the allocatively efficient output for the firm represented in the diagram?

Figure 13-8 shows cost and demand curves for a monopolistically competitive producer of iced tea. -Refer to Figure 13-8.What is the profit-maximizing output level?