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

Author Question: Freedom of entry and exit in monopolistic competition A) means that firms' price and average ... (Read 45 times)

leilurhhh

  • Hero Member
  • *****
  • Posts: 560
on: Jun 29, 2018
Freedom of entry and exit in monopolistic competition
 
  A) means that firms' price and average total cost of producing are always equal.
  B) never allows firms to earn economic profits.
  C) leads to falling prices when new firms enter the market.
  D) forces firms to abandon product differentiation but only in the long run.

Question 2

When comparing perfect competition to a single-price monopoly with the same costs
 
  A) both market types use resources efficiently.
  B) there is a deadweight loss associated with a monopoly.
  C) the sum of producer and consumer surplus is maximized under a monopoly.
  D) the sum of producer and consumer surplus is minimized under perfect competition.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

joshraies

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

B


leilurhhh

  • Member
  • Posts: 560
Reply 2 on: Jun 29, 2018
Excellent

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

On average, the ratio of carbon to nitrogen is much higher in terrestrial plants than in other major On average, the ratio of carbon to nitrogen is much higher in terrestrial plants than in other major
Bipolar disease. The term bipolar means “pertaining to two poles.” The individual with this form of Bipolar disease. The term bipolar means “pertaining to two poles.” The individual with this form of
Gangrene of the toes and foot as a result of an infection often means eventual amputation. Gangrene of the toes and foot as a result of an infection often means eventual amputation.
Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ Change in Emotional States During Adolescence Average emotional state becomes teadilyi more negativ
A Scatterplot of the Test Scores and Average Grades of 10 Students A Scatterplot of the Test Scores and Average Grades of 10 Students
The average weight gain between Thanksgiving and New Year's Day is about a pound The average weight gain between Thanksgiving and New Year's Day is about a pound
Video: Junction Types - Tight and Adherens Junctions

For a complete list of videos, visit our video library