Which of the following is least likely a feature that monopolistic competition and perfect competition have in common
A: Output occurs where MR=MC.
B: Zero economic profits in the long run.
C: Extensive advertising to differentiate products.
A: Output occurs where MR=MC.
B: Zero economic profits in the long run.
C: Extensive advertising to differentiate products.
举一反三
- Because economic profits are eliminated in the long run in monopolistic competition, to make an economic profit, firms continuously develop and market new products。(<br/>)
- Select the statement that distinguishes monopolistic competition from perfect competition. A: No barriers to entry/exist in monopolistic competition. B: A firm in monopolistic competition can set its own price and output. C: A firm in monopolistic competition makes zero economic profit in the long run. D: Close substitutes are available in monopolistic competition.
- In monopolistically competitive markets, free entry and exit suggests that A: the market structure will eventually be characterized by perfect competition in the long run. B: all firms earn zero economic profits in the long run. C: some firms will be able to earn economic profits in the long run. D: some firms will be forced to incur economic losses in the long run.
- In the long-run, a firm in monopolistic competition produces at an output level where A: P > ATC and MR = MC. B: P > ATC and MR > MC. C: P = ATC and MR = MC. D: P = ATC and MR > MC.
- Which one of the following statements is TRUE for BOTH perfect competition and monopolistic competition? A: Each type of firm faces a downward sloping demand curve. B: Each type of firm produces a homogeneous product. C: In the long run, firms in both industries make zero economic profit. D: Each type of firm competes on product quality and price.