« previous next »

Author Question: Monopolistic competition is like monopoly with entry. Indicate whether the statement is true or ... (Read 33 times)

DyllonKazuo

  • Hero Member
  • *****
  • Posts: 565
on: Jul 1, 2018
Monopolistic competition is like monopoly with entry.
 
  Indicate whether the statement is true or false

Question 2

A monopoly will always sell rather than rent its product.
 
  Indicate whether the statement is true or false


jessicaduplan

  • Sr. Member
  • ****
  • Posts: 337
Reply #1 on: Jul 1, 2018
Answer to Question 1

T Each firm has some monopoly power but entry can occur to drive profit to zero.

Answer to Question 2

F If the product is durable, consumers may fear the monopolist who sells it will keep lowering the price, causing the value of their purchase to decline. So they may refuse to buy. If the monopolist rents, this avenue of lowering price to discriminate is no longer an option in that the monopoly will suffer any negative effects of doing so. Consumers realize this and by renting the monopolist may win their business.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

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.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Competition among Paramecium species. Competition among Paramecium species.
Alexander Fleming photographed in his lab where he observed the natural competition between a fungus Alexander Fleming photographed in his lab where he observed the natural competition between a fungus
Which is TRUE about the alternation of generations cycle that is diagramed above? Which is TRUE about the alternation of generations cycle that is diagramed above?
Attachment and cell entry by HIV. Attachment and cell entry by HIV.
Medical Hot Zone Entry Exclusion Criteria During Pre-Entry Check Medical Hot Zone Entry Exclusion Criteria During Pre-Entry Check
A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ... A bank statement shows a balance of $2,970.31 The check register of the account owner shows an ...
Video: ETC Protein Complexes & Chemiosmosis (Total ATP Production and ATP Synthase)

For a complete list of videos, visit our video library