The market for corn in Brazil has a large number of sellers and there is no difference in the products sold by each seller. As there are also a large number of buyers for corn, the actions of a single seller or buyer cannot affect the price. The market for corn in Brazil can be described as ____. monopolistic competition pure competition an oligopoly a monopoly modified competition

The market for corn in Brazil has a large number of sellers and there is no difference in the products sold by each seller. As there are also a large number of buyers for corn, the actions of a single seller or buyer cannot affect the price. The market for corn in Brazil can be described as ____. monopolistic competition pure competition an oligopoly a monopoly modified competition

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 9.5IP

See similar textbooks

Similar questions

In which situation at the following, _______ is the market dominated by only one seller/company? Pure monopoly Monopolistic competition Oligopolistic competition Pure competition Free market
Which of the following is not true? Monopolistic competition and perfect competitive markets do not have any economic profits. In monopolistic competition, perfect competition and monopoly's, the demand curve is downward sloping. There are free entry/exit in two of the three types of markets we have studied The products that are sold by monopolies and monopolistic competitors are different
Monopolies can maintain economic profits in the short and long run because of barriers to entry which prevent competitors from entering the market. A Monopolistic Competition market does not have barriers to entry so firms are free to enter and leave the market. This creates a situation where there is a long and short run similar to perfect competition. A graph showing: short run economic profit A graph showing: short run economic loss A graph showing: long run - normal profit (economic profit equal to zero)
Monopolies can maintain economic profits in the short and long run because of barriers to entry which prevent competitors from entering the market. A Monopolistic Competition market does not have barriers to entry so firms are free to enter and leave the market. This creates a situation where there is a long and short run similar to perfect competition. Graph the following: A graph showing: short run economic profit A graph showing: short run economic loss A graph showing: long run - normal profit (economic profit equal to zero)
Monopolies can maintain economic profits in the short and long run because of barriers to entry which prevent competitors from entering the market. A Monopolistic Competition market does not have barriers to entry so firms are free to enter and leave the market. This creates a situation where there is a long and short run similar to perfect competition. Graph the following: A graph showing: long run - normal profit (economic profit equal to zero)
2. HOW Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. PRICE (Dollars per bike) 500 450 400 350 300 250 200 150 100 50 0 0 Mo 50 100 ATC MR 200 250 300 350 QUANTITY (Bikes) 150 Demand 400 450 500 Monopolistically Competitive Outcome Given the profit-maximizing choice of output and price, the shop is earning shops in the industry than in long-run equilibrium. Profit or Loss profit, which means there are
Suppose the market for kitchen knives is monopolistically competitive and that businesses in this market are currently earning negative economic profits. In the long run, the demand for an individual kitchen knife business will ______ as more kitchen knife businesses leave the market, which will cause economic profits to ______ .
Please consider firms in the following types of markets: Monopolistic Competition Oligopoly Pure Competition Pure Monopoly Check All That Apply The following questions will ask you to check all of the market types that has each characteristic. There may be only one market type or there may be more than one market type for each characteristic. Price is equal to marginal revenue Monopolistic Competition Oligopoly Pure Monopoly Pure Competition Has high barriers to entry Monopolistic Competition Pure Competition Pure Monopoly Oligopoly Charges the lowest price Pure Monopoly Pure Competition Monopolistic Competition Oligopoly Produces the lowest quantity Monopolistic Competition Pure Monopoly Pure Competition Oligopoly Achieves allocative efficiency in the long run equilibrium Monopolistic Competition Pure Competition Oligopoly Pure Monopoly O O O O
There are four main forms of market, namely pure competitive market, monopolistic competition market, and marketoligopoly, and the monopoly market. These four forms of market can be viewed from the seller's point of view or in terms ofbuyer. Explain the difference between Pure Competition and Pure Monopoly Market!
Provide some examples of goods/services you buy from a highly competitive market and some examples of goods/services you buy from a monopolistic market. Discuss why some markets are highly competitive and other markets are not (such as a monopoly).
Monopolistic competition creates inefficiency because of the Price markups and excess capacity. The graph depicts the situation $100 for a hypothetical monopolistically competitive firm. The 90 curves included in the graph are demand (D), marginal 80 revenue (MR), average total cost (ATC), and marginal cost ATC (MC). Use the graph to find the requested values. 70 60 What is the size of the markup on the price? 50 40 markup: $ 30 What is the size of the excess capacity? 20 MC MR 10 units excess capacity: 20 30 40 50 60 70 80 90 10 100 Quantity
The graph shows the short-run cost, revenue, and perceived demand curves for all firms in the convenience store market, which is a monopolistically competitive market. Price ($) Marginal cost Number of firms will remain the same. Number of firms will decrease to one firm. Number of firms will increase. Number of firms will decrease. Demand Quantity What will happen to the number of firms in the industry as it moves from the short run to the long run? Average cost Marginal revenue