Author Question: In the 1920s and 1930s, economists became increasingly aware that there were industries that did not ... (Read 67 times)

SAVANNAHHOOPER23 · **on:** Jun 29, 2018

In the 1920s and 1930s, economists became increasingly aware that there were industries that did not fit the model of perfect competition or pure monopoly. Two separate theories of monopolistic competition resulted.

Edward Chamberlin of Harvard published the Theory of Monopolistic Competition in 1933. Chamberlin defined monopolistic competition as A) a relatively large number of producers offering similar but differentiated products.
B) a relatively small number of producers offering similar but differentiated products.
C) a market situation in which a large number of firms produce identical products.
D) a market situation in which a small number of firms produce similar products.

Question 2

One of the strongest reasons that oligopolies exist is due to

A) the homogeneity of their products.
B) marginal cost pricing.
C) lowest cost production.
D) economies of scale.