Monopolistic Competition

Your page rank:

Total word count: 329
Pages: 1

Calculate the Price

- -
275 words
Looking for Expert Opinion?
Let us have a look at your work and suggest how to improve it!
Get a Consultant

If the market demand curve for a commodity has a negative slope then the market structure must be:

The market structure cannot be determined

Which of the following industries is MOST likely to be monopolistically competitive?

fresh bagel shops

The downward-sloping demand curve for a monopolistically competitive firm:

reflects product differentiation

A feature of monopolistic competition that makes it different from monopoly is the:

number of firms in the industry

Many customers will walk right past a diner that serves coffee and go to Starbucks, where they pay more for a cup of java. For these customers, coffee is differentiated by:


Suppose a monopolistically competitive firm is making a profit, but it can increase its profits by increasing output. At the current level of output:

Marginal revenue is greater than marginal cost.

Monopolistically competitive firms have zero economic profits in the long run because of:

easy entry and exit

General Snacks is a typical firm in monopolistic competition. Initially, the market is in long-run equilibrium, and then there is an increase in the market demand for snacks. In the long run, the economic profits of typical firms in the industry will be:


The model of monopolistic competition characterizes a city’s market for plumbing services. Suppose that the market is initially in long-run equilibrium, and then demand for plumbing services increases. In the short run, plumbing services’ price will _____ and output will _____.

rise; rise

The price in long-run equilibrium for a monopolistically competitive firm is _____ and output is _____, compared to that of a perfectly competitive firm with an identical production function and cost curves.

higher; smaller

A monopolistically competitive firm has excess capacity in the long run. This means that it:

produces less than the output at which average total costs are minimized.

Which of the following is TRUE?

In monopolistic competition firms earn zero economic profits in the long run.

Both monopolists and monopolistic competitors:

charge a price that is greater than the marginal cost of production.

Share This

More flashcards like this

NCLEX 10000 Integumentary Disorders

When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? a) ...

Read more


A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. I can’t do anything without ...

Read more

NASM Flashcards

Which of the following is the process of getting oxygen from the environment to the tissues of the body? Diffusion ...

Read more

Unfinished tasks keep piling up?

Let us complete them for you. Quickly and professionally.

Check Price

Successful message