This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Compare perfect competition and monopolistic competition. In what ways are they similar? In what ... (Read 140 times)

kaid0807

  • Hero Member
  • *****
  • Posts: 515
on: Jun 29, 2018
Compare perfect competition and monopolistic competition. In what ways are they similar? In what ways are they different?
 
  What will be an ideal response?

Question 2

If additional units of a good could be produced at an increasing opportunity cost, the production possibilities frontier would be linear.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 29, 2018
Answer to Question 1

Because of freedom of entry, economic profits are zero in the long run both for perfect competition and monopolistic competition. But firms in monopolistic competition charge a price greater than marginal cost. This implies that monopolistically competitive industries do not produce the efficient level of output. Also, firms in monopolistic competition do not realize all the economies of scale available. In addition, another difference is that firms in monopolistic competition produce differentiated products. Firms in perfect competition only produce homogenous goods.

Answer to Question 2

FALSE


kaid0807

  • Hero Member
  • *****
  • Posts: 515
Reply #2 on: Jun 29, 2018
Correct answers!


jgranad15

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jun 29, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

The B-complex vitamins and vitamin C are not stored in the body and must be replaced each day.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Two equivalent ways of drawing a phylogeny Two equivalent ways of drawing a phylogeny
Results from sequential study of two cohorts tested at three ages and at three different points in t Results from sequential study of two cohorts tested at three ages and at three different points in t
While most people resist labels of deviance, some embrace them. In what different ways do these ... While most people resist labels of deviance, some embrace them. In what different ways do these ...
A GDI system uses a low-pressure pump in the gas tank similar to other types of fuel-injection ... A GDI system uses a low-pressure pump in the gas tank similar to other types of fuel-injection ...
One of the best ways to reduce your chances of catching a cold One of the best ways to reduce your chances of catching a cold
How reciprocal functions compare to the parent function How reciprocal functions compare to the parent function
Video: Mendel's Pea Experiment

For a complete list of videos, visit our video library