What is one difference between a firm in a perfectly competitive industry and a firm in a monopolistically competitive industry?A) A monopolistically competitive firm does not face a downward-sloping demand curve.
B) A monopolistically competitive firm faces competition from firms producing close substitutes.
C) A monopolistically competitive firm is guaranteed to make more than normal profits in the long run.
D) A monopolistically competitive firm does not choose a level of output where marginal cost is equal to marginal revenue.

Answers

Answer 1

Answer:

Answer:

Letter b is correct. A monopolistically competitive firm faces competition from firms producing close substitutes.

Explanation:

Monopolistic competition is an economic situation that occurs when companies exhibit imperfect competition, that is, companies market similar but not identical products, which characterize them as substitute but not perfect substitute products.

Products may have different variables, such as quality, price and reputation in the market. The greater the degree of product differentiation, the more price control the company will have.

Related Questions

Janice really likes potatoes. Potatoes cost $1 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. Suppose she feels that the first pound of potatoes is worth $1.50, the second pound is worth $1.14, the third pound is worth $1.05, and all subsequent pounds are worth $0.30.a. How many pounds of potatoes will she purchase?b. What if she only had $2 to spend?Explanation:_______a. Janice will purchase potatoes until the value of potatoes is less than the cost of potatoes or until her income has been exhausted. For example, assume Janice has $5.00 to spend on potatoes or other items and the cost of a pound of potatoes is $1. Now assume the first pound of potatoes is worth $1.50 to Janice. She will purchase this pound of potatoes, since the value of the pound of potatoes ($1.50) is greater than the cost ($1). If the second pound is worth $1.14 and the third pound is worth $1.05, then Janice will purchase these as well, since the value exceeds the cost of $1. If all remaining pounds are worth $0.30, then Janice will not purchase these because the value is less than the cost. Thus, Janice will purchase 3 pounds of potatoes at a total cost of $3.00.b. Now assume Janice only has $2.00 to spend on potatoes. She will purchase the first pound because it is worth $1.50 to her and it only costs $1. She will purchase the second pound because it is worth $1.14. She has now spent her entire income on potatoes. She would like to purchase the third pound because the value of this pound of potatoes is $1.05, but she does not have the income to make this purchase. Thus, Janice will purchase 2 pounds of potatoes at a total cost of $2.00.
17) If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals A) 225. B) 300. C) 250. D) 450. 2016 2017 Item Quantity Price Quantity Price Books 10 $30 8 $50 Pens 20 $1 15 $2
A _____ is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment.
Assume that Horicon Corp acquired 25% of the common stock of Sheboygan Corp. on January 1 for $300,000. During the year Sheboygan Corp. reported net income of $160,000 and paid total dividends of $60,000. What entry would Horicon make to record the receipt of the dividend from Sheboygan
1. Which of the following types of relationships exists when a person hires another person to perform some form of physical service but does not authorize that person to enter into contracts on his or her behalf? A) employer-employee relationship B) employer-agent relationship C) principal-third party relationship D) principal-agent relationship

Justify the establishment of a state-owned company

Answers

State-owned companies are usually found to have control over something that is necessary for the well-being of the state. For example, a road building company will often be found in various states as a state owned enterprise because it can build all roads throughout the state and create a standard that is never different. This prevents private companies from monopolizing with toll prices, or from stealing, making lower quality roads, and similar.

Whirlpool is a company that organizes its sales force along customer or industry lines. For example, Whirlpool assigns individual teams of sales people to its different customers: Lowe's, Bust Buy, and Home Depot. Which sales force structure is Whirlpool using?

Answers

Whirlpool is using Market sales force structure

Explanation:

A business that deals in supplying only a portion of the goods or lines of the organisation.

Companies spend significant amount of time and money on maintaining their selling teams, rarely think about changing the sales force over the life cycle of a product or a corporation. Nonetheless, improvements in the composition of the sales force are necessary if an organisation is to continue to win the market for customers.

Clearly, the structure and practices of the sales force of a business is not easy to change. The nature of the sales force that operates during the start-up varies from what works when the company grows, matures and declines.

Which of the following groups decides who sits on the board of directors of a corporation?A. Consumers
B. The US government
C. American voters
D. Shareholders

Answers

Shareholders decides who sits on the board of directors of a corporation

Shareholders and board of directors

A shareholder, also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company's stock, known as equity. Because shareholders essentially own the company, they reap the benefits of a business's success. These rewards come in the form of increased stock valuations or financial profits distributed as dividends.

Roles of a Shareholder

1. Brainstorming and deciding the powers they will bestow upon the company’s directors, including appointing and removing them from office

2. Making decisions on instances the directors have no power over, including making changes to the company’s constitution

3. Checking and making approvals of the financial statements of the company

Types of Shareholders

Common shareholders are those that own a company’s common stock. They are the more prevalent type of stockholders and they have the right to vote on matters concerning the company.

Preferred shareholders are more rare. Unlike common shareholders, they own a share of the company’s preferred stock and have no voting rights or any say in the way the company is managed. Instead, they are entitled to a fixed amount of annual dividend, which they will receive before the common shareholders are paid their part.

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d. the shareholders decide who sits on the board of directors

In an acquisition the firm being purchased is the and the firm which is purchasing the other firm is the

Answers

In an acquisition, the firm being purchased is the target firm, and the firm which is purchasing the other firm is the acquiring firm.

if george earned $50,000 and was taxed $7,500, while julia earned $80,000 and was taxed $9,000, what type of income tax structure exists in their country?

Answers

Hey there

The correct answer is regressive income tax.

Regressive income tax is the type of income tax structure that exists in their country

the answer is regressive income tax.

According to the Taylor rule, the Fed should raise the federal funds interest rate when inflation ________ the Fed's inflation target or when real GDP ________ the Fed's output target.

Answers

Answer:

rises above; rises above

Explanation:

According to the Taylor rule, the Fed should raise the federal funds interest rate when inflation rises above the Fed's inflation target or when real GDP rises above the Fed's output target.

Answer:

The Federal Reserve seeks to control inflation by influencing interest rates. When inflation is too high, the Federal Reserve typically raises interest rates to slow the economy and bring inflation down.

Explanation:

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The level of aggregate supply in the long-run is not affected by________. A. Changes in the capital stock. B. changes in the number of workers. C. changes in the price level. D. changes in technology.

What two pieces of information are arguably the most important to any business?

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