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 131 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?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

There can actually be a 25-hour time difference between certain locations in the world. The International Date Line passes between the islands of Samoa and American Samoa. It is not a straight line, but "zig-zags" around various island chains. Therefore, Samoa and nearby islands have one date, while American Samoa and nearby islands are one day behind. Daylight saving time is used in some islands, but not in others—further shifting the hours out of sync with natural time.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Emerging adults often feel adult in some ways but not others. Emerging adults often feel adult in some ways but not others.
Ways to prevent heat waves Ways to prevent heat waves
Physical features of Sjögren's syndrome. Source: Ways Sjogren's Syndrome May Affect the ... Physical features of Sjögren's syndrome. Source: Ways Sjogren's Syndrome May Affect the ...
European swimming competition European swimming competition
Two ways of generating genetic variation in meiosis Two ways of generating genetic variation in meiosis
Lastlings - Perfect World (Official Music Video) Lastlings - Perfect World (Official Music Video)
Video: Nerve Impulse Transmission Animation

For a complete list of videos, visit our video library